Japanese Real Estate Glossary

Statutory property disclosure document that a licensed agent must provide before contract signing. Covers legal status, building structure, repair history, management finances, encumbrances, and restrictions. Always have it reviewed or translated before signing.

See also: Taku-ken

Earnest money deposit, typically 5–10% of purchase price, paid on signing the sales contract (売買契約). If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must return double the amount.

Purchase and sale agreement. The binding sales contract signed after the Jūyō Jikō explanation. Once signed with earnest money paid, withdrawal by either party incurs penalties.

Settlement day when full payment is made and title is transferred. Typically takes 1–2 hours at a judicial scrivener's office. You receive the land registry extract (登記簿謄本) confirming ownership.

Judicial scrivener. A licensed professional who handles the legal registration of property ownership transfer and mortgage registration. Their fee is typically ¥80,000–¥150,000.

Reinforced concrete (RC) or steel-reinforced concrete (SRC) apartment building with multiple individual ownership units (区分所有). The predominant investment property type in Japan. Different from the English word "mansion" — size ranges from studio to penthouse.

See also: Kubun Shoyū

Lightweight apartment building, typically 2-story wood or light steel frame construction. Lower price per unit but also lower durability and resale value than Manshon. Common in suburbs.

Sectional/strata ownership. Each unit in a Manshon is individually owned, with common areas (hallways, elevators, lobby) held collectively through the homeowners association (管理組合).

Detached house. Land and building owned together. Common in suburbs. Less common as an investment vehicle than Manshon due to management complexity.

Real estate acquisition tax. Payable months after purchase (not at settlement). Typically 3% of the assessed value for residential property. Reductions apply for primary residences and buildings meeting certain size/age criteria.

Fixed asset tax (property tax). Levied annually at 1.4% of the assessed value (課税標準額). Assessed value is set by the municipality and is typically 50–70% of market value for land. Billed in 4 installments.

City planning tax. Levied on properties within urbanization promotion areas at up to 0.3% of assessed value annually. Added on top of fixed asset tax.

Stamp duty on the purchase contract. Calculated by contract value: ¥10,000 for ¥10–50 million, ¥30,000 for ¥50–100 million. A reduced rate applies when using electronic contracts.

Property registration with the Legal Affairs Bureau. Ownership transfer and any mortgage must be registered to be legally effective. Registration tax (登録免許税) applies: typically 0.3% for transfer of ownership, 0.4% for mortgage.