I would like to explain what happens to the flow of money when purchasing real estate in Japan. When the buyer does not live in Japan, basically, the money is sent from the home country to the buyer agent in advance, and the money is paid to the seller in Japanese yen. Generally, 10% of the deposit is paid to the seller at the time of the contract, and the revenue stamp attached to the contract and half of the fee paid to the agent are generally paid together with the remittance to the buyer agent.
According to my rule of thumb, if the contract deposit is 10 million yen or less (real estate price is 100 million yen or less), withdraw cash from the account on the day of the contract and bring cash to the contract. Believe it or not, we carry 10 million yen in cash.
At the time of the contract, the seller, the seller's agent, the buyer, and the buyer's agent gather together to explain important matters, contract details, other real estate matters, etc., sign and seal the contract and conclude the contract. Then, as a proof and fulfillment of the contract, the deposit is paid to the seller. It takes about 2 hours.
The remaining payments will be collected at the banks, and additional judicial scriveners will be gathered to confirm the transfer of ownership, confirm the documents, perform the remaining procedures, and execute the transfer. The judicial scrivener confirms the ownership and confirms the title, and then, transfers the balance to the seller. There is no business practice to use an escrow account in Japan, and pay the remaining directly to the seller's bank account.
Remittances to Japan are made at the time of contract and payment at the time of real estate delivery.
Since the payment for real estate will be calculated based on the settlement date, the property tax will be calculated, so we ask to transfer in advance, or ask to transfer a little more. Taking into account the remittance fee and the number of arrival days for the remittance, the early procedure will make the transaction assured.
Arrows International Realty Corp.