1-1 The Process of Buying a House
Once you have decided to buy a house, it is helpful to know what the process is before moving in so that you can plan ahead.
Point 1: Difference between a House for Sale and Brokerage
There are two main types of housing sales: for sale and brokerage. This changes the purchase process.
(1) Property for sale
This is a property purchased directly from the real estate company that is the seller. (It may also be purchased through a real estate company that has been commissioned by the seller to act as a sales agent.) Generally, newly built condominiums and newly built single-family homes with a large number of units for sale are properties for sale.
(2) Property for brokerage
This is a property purchased through a real estate company that has received a request from the seller to act as an intermediary. Generally, newly built detached houses and used properties with a small number of units for sale are agency properties. In the case of properties for brokerage, a brokerage fee may be charged to the real estate company, which must be confirmed in advance.
(1) Property for sale
This is a property purchased directly from the real estate company that is the seller. (It may also be purchased through a real estate company that has been commissioned by the seller to act as a sales agent.) Generally, newly built condominiums and newly built single-family homes with a large number of units for sale are properties for sale.
(2) Property for brokerage
This is a property purchased through a real estate company that has received a request from the seller to act as an intermediary. Generally, newly built detached houses and used properties with a small number of units for sale are agency properties. In the case of properties for brokerage, a brokerage fee may be charged to the real estate company, which must be confirmed in advance.
When a real estate company is the seller
The seller (the real estate company selling the property) plans
↓
A contractor (construction company) builds a house
↓
A real estate company entrusted with the sale sells the house
↓
A buyer (individual) purchases the house
*In some cases, the seller buys and sells directly.
⇒ The seller (the real estate company selling the property)
⇕ Contract
the buyer (individual)
When an individual is the seller
The seller (an individual)
↓
A Real estate company requested to act as an intermediary mediates the sale .
↓
A buyer (individual) purchases the house
⇒ The seller (an individual)
⇕ Contract
A buyer (individual)
The seller (the real estate company selling the property) plans
↓
A contractor (construction company) builds a house
↓
A real estate company entrusted with the sale sells the house
↓
A buyer (individual) purchases the house
*In some cases, the seller buys and sells directly.
⇒ The seller (the real estate company selling the property)
⇕ Contract
the buyer (individual)
When an individual is the seller
The seller (an individual)
↓
A Real estate company requested to act as an intermediary mediates the sale .
↓
A buyer (individual) purchases the house
⇒ The seller (an individual)
⇕ Contract
A buyer (individual)
Point 2: The Purchase Flow of a House for Sale
The following is the general flow for purchasing a house for sale.
*Please see point 3 for purchasing a house for brokerage, including a newly built house.
*Please see point 3 for purchasing a house for brokerage, including a newly built house.
Step 1 List up your preferences
List up your preferences such as the area you want to live, the type of housing, the size and layout of the house, and when you want to move in.
List up your preferences such as the area you want to live, the type of housing, the size and layout of the house, and when you want to move in.
⇩
Step 2 Set a budget
Check the approximate market price of a house you are considering to buy, the amount of your savings, and the amount you can borrow for a mortgage, and establish a rough estimate of your budget.
Check the approximate market price of a house you are considering to buy, the amount of your savings, and the amount you can borrow for a mortgage, and establish a rough estimate of your budget.
⇩
Step 3 Look for a house
Gather property information from Internet searches, newspaper inserts, referrals from real estate agencies, and other sources to find properties that match your preferences.
Gather property information from Internet searches, newspaper inserts, referrals from real estate agencies, and other sources to find properties that match your preferences.
⇩
Step 4 Visit the site
Once you find a property you like, you can actually visit the model home or the site. Once you have found the property you wish to purchase, you will again check the property's surroundings, floor plan, facilities, purchase terms, etc.
Once you find a property you like, you can actually visit the model home or the site. Once you have found the property you wish to purchase, you will again check the property's surroundings, floor plan, facilities, purchase terms, etc.
⇩
Step 5 Make a financial plan
In parallel with the property search, concretize your financial plan. In addition to the funds needed to purchase the property, estimate the various expenses, mortgage interest rates, and monthly repayments that will be required.
In parallel with the property search, concretize your financial plan. In addition to the funds needed to purchase the property, estimate the various expenses, mortgage interest rates, and monthly repayments that will be required.
⇩
Step 6 Make a purchase offer
The seller, a real estate company, makes a purchase offer to the real estate company acting as a sales agent. At this time, an application deposit may be required, but it will be returned if the application is withdrawn before the sales contract is signed.
The seller, a real estate company, makes a purchase offer to the real estate company acting as a sales agent. At this time, an application deposit may be required, but it will be returned if the application is withdrawn before the sales contract is signed.
⇩
Step 7 Receive an explanation of important matters
You will receive an explanation of important matters concerning the property to be purchased from the real estate transaction agent of the real estate company where you applied for the purchase.
You will receive an explanation of important matters concerning the property to be purchased from the real estate transaction agent of the real estate company where you applied for the purchase.
⇩
Step 8 Sign a real estate sales contract
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of approximately 10% of the property price is generally paid. When signing the sales contract, make sure you have a clear understanding of the terms and conditions of the contract.
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of approximately 10% of the property price is generally paid. When signing the sales contract, make sure you have a clear understanding of the terms and conditions of the contract.
⇩
Step 8 Sign a real estate sales contract
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of approximately 10% of the property price is generally paid. When signing the sales contract, make sure you have a clear understanding of the terms and conditions of the contract.
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of approximately 10% of the property price is generally paid. When signing the sales contract, make sure you have a clear understanding of the terms and conditions of the contract.
⇩
Step 9 Sign a mortgage loan
When using a mortgage loan, sign a formal contract for a mortgage loan following the signing of the sale contract.
*Prior to signing the contract, the loan must be reviewed and approved by the financial institution and guarantee company.
When using a mortgage loan, sign a formal contract for a mortgage loan following the signing of the sale contract.
*Prior to signing the contract, the loan must be reviewed and approved by the financial institution and guarantee company.
⇩
Step 10 The delivery of the property
Upon the completion of construction, the remaining payment is made. At the same time, the seller will deliver the property and complete the real estate registration procedures. After that, you will move in.
Upon the completion of construction, the remaining payment is made. At the same time, the seller will deliver the property and complete the real estate registration procedures. After that, you will move in.
Point 3: The Purchase Flow of a House for Brokerage
The following is the general flow for purchasing a house for brokerage
Step 1 List up your preferences
List up your preferences such as the area you want to live, the type of housing, the size and layout of the house, and when you want to move in.
List up your preferences such as the area you want to live, the type of housing, the size and layout of the house, and when you want to move in.
⇩
Step 2 Set a budget
Check the approximate market price of a house you are considering to buy, the amount of your savings, and the amount you can borrow for a mortgage, and establish a rough estimate of your budget.
Check the approximate market price of a house you are considering to buy, the amount of your savings, and the amount you can borrow for a mortgage, and establish a rough estimate of your budget.
⇩
Step 3 Find a Real Estate Agency
To buy a house for brokerage, it is important to find a reliable real estate agency. Look into the real estate agency's listings and choose the real estate agency you would like to request to find a house.
To buy a house for brokerage, it is important to find a reliable real estate agency. Look into the real estate agency's listings and choose the real estate agency you would like to request to find a house.
⇩
Step 4 Look for a house
Let the real estate agency you have chosen know your preferences and ask them to refer you to properties that match your preferences. You can also gather property information from Internet searches and real estate advertisements on your own.
Let the real estate agency you have chosen know your preferences and ask them to refer you to properties that match your preferences. You can also gather property information from Internet searches and real estate advertisements on your own.
⇩
Step 5 Visit the site
Once you find a property you like, you can actually visit the model home or the site. Once you have found the property you wish to purchase, you will again check the property's surroundings, floor plan, facilities, purchase terms, etc.
Once you find a property you like, you can actually visit the model home or the site. Once you have found the property you wish to purchase, you will again check the property's surroundings, floor plan, facilities, purchase terms, etc.
⇩
Step 6 Request a real estate agency to mediate (sign a brokerage contract).
When formally requesting mediation of sales to a real estate agency, a brokerage contract is concluded. In this contract, the subject property, the service details, and the real estate agency's fee will be described.
*A brokerage contract is generally concluded between "Step 4 Look for a house" and "Step 8 Make a purchase offer" when you decide on a real estate agency to request mediation.
When formally requesting mediation of sales to a real estate agency, a brokerage contract is concluded. In this contract, the subject property, the service details, and the real estate agency's fee will be described.
*A brokerage contract is generally concluded between "Step 4 Look for a house" and "Step 8 Make a purchase offer" when you decide on a real estate agency to request mediation.
⇩
Step 7 Make a financial plan
In parallel with the property search, concretize your financial plan. In addition to the funds needed to purchase the property, estimate the various expenses, mortgage interest rates, and monthly repayments that will be required.
*Before finalizing the purchase of a house, a building inspection may be conducted to ascertain the condition of the house. You may need to purchase an "existing house sales defect insurance.
In parallel with the property search, concretize your financial plan. In addition to the funds needed to purchase the property, estimate the various expenses, mortgage interest rates, and monthly repayments that will be required.
*Before finalizing the purchase of a house, a building inspection may be conducted to ascertain the condition of the house. You may need to purchase an "existing house sales defect insurance.
⇩
Step 8 Make a purchase offer
Once you have decided on the property you wish to purchase and your desired conditions, make an purchase offer to the seller through the real estate agency. Applications are generally made in writing.
Once you have decided on the property you wish to purchase and your desired conditions, make an purchase offer to the seller through the real estate agency. Applications are generally made in writing.
⇩
Step 9 Receive an explanation of important matters
You will receive an explanation of important matters concerning the property to be purchased from the real estate transaction agent of the real estate company.
You will receive an explanation of important matters concerning the property to be purchased from the real estate transaction agent of the real estate company.
⇩
Step 10 Sign a real estate sales agreement
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of generally 10-20% of the property price is paid. When you sign a sales contract, make sure that you have thoroughly reviewed the terms of the contract.
If you confirm the contents of the explanation of important matters and are satisfied with it, you conclude a sales contract with the seller. At this time, a deposit (contract fee) of generally 10-20% of the property price is paid. When you sign a sales contract, make sure that you have thoroughly reviewed the terms of the contract.
⇩
Step 11 Sign a mortgage loan
When using a mortgage loan, sign a formal contract for a mortgage loan following the signing of the sale contract.
*Prior to signing the contract, the loan must be reviewed and approved by the financial institution and guarantee company.
When using a mortgage loan, sign a formal contract for a mortgage loan following the signing of the sale contract.
*Prior to signing the contract, the loan must be reviewed and approved by the financial institution and guarantee company.
⇩
|
Step 12 The delivery of the property
When the property is ready for delivery, the remaining payment is made. At the same time, the property is handed over from the seller and the property is registered. You will then move in 📖Buying a House: the Building Lots and Buildings Transaction Business
The Building Lots and Buildings Transaction Business
Point 1: Difference between the Real Estate Business and the Building Lots and Buildings Transaction Business
The real estate business and the building lots and buildings transaction business are not synonymous. The real estate business includes buying and selling, brokerage (also known as "mediation"), leasing (landlords of land, houses, and buildings), and management (management of condominiums, management of rental properties, etc.). On the other hand, the building lots and buildings transaction business includes only those types of real estate businesses that handle transactions (distribution) such as buying, selling, and brokering. Therefore, when selling or purchasing a house, it is important to understand the building lots and buildings transaction business.
Point 2: What is the building lots and buildings transaction business?
The building lots and buildings transaction business (i.e., the real estate transaction business) is
(1) Buying, selling, and exchanging residential land and buildings (2) Representation or mediation when buying, selling, exchanging, or borrowing and lending The Building Lots and Buildings Transaction Business Law regulates that only persons licensed by the Minister of Land, Infrastructure, Transport and Tourism or the prefectural governor are allowed to engage in the building lot and building transaction business. Whether the license is issued by the Minister of Land, Infrastructure, Transport and Tourism (MLIT) or by the prefectural governor depends on the status of the office (head office, branch office, etc.). The term of validity of a license for the real estate transaction business is five years. It is important to note here that while intermediation of leasing and renting (such as soliciting tenants) at the request of a landlord is included in the 宅建 (building lots and buildings transaction) business, leasing and renting by oneself (such as managing a building or apartment for rent) is not included in the 宅建 (building lots and buildings transaction)business and is not a business regulated by the Building Lots and Buildings Transaction Business regulations. 
Differences between licenses issued by the MLIT and the prefectural governor
The licensing authority (Minister of Land, Infrastructure, Transport and Tourism or prefectural governor) will also issue administrative penalties such as instructions to improve business, suspension of business, or revocation of license in the event of violations of laws and regulations by a building lots and buildings transaction business operator. 
Point 3: What is the role of a real estate transaction agent?
A real estate transaction agent is a person who has passed the real estate transaction chief qualification examination or the real estate transaction professional qualification examination, has been registered by the prefectural governor, and has been issued a real estate transaction professional certificate, and is a distribution specialist who has extensive knowledge of real estate transactions. The Building Lots and Buildings Transaction Business Law stipulates that only a real estate transaction agent can handle the explanation of properties and contract details (explanation of important matters), which is one of the most important tasks in real estate transactions, and the signing and sealing of documents describing the written explanation and contract details.
In order for a real estate company to be licensed as a real estate transaction agency, it must have at least a certain number of professional real estate agents. |
Click here to edit.
|