Selling a Pre-Owned Condominium to a Foreign Buyer in Japan

1. Basic Legal Position in Japan

Japan does not restrict foreign nationals from purchasing residential real estate, including condominiums.
However, additional documentation, compliance checks, and legal notifications may be required depending on the buyer’s residency status.

2. Required Documents (Buyer – Foreign National)

A. Identification & Personal Documents
•Passport (copy)
 *Name, nationality, date of birth
•Address verification
 *Overseas address (utility bill, bank statement, etc.)
•Residence Card (if applicable)
 *For foreign residents living in Japan
•Affidavit (Declaration of Identity)
 *Used as a substitute for a Japanese resident certificate
•Signature Certificate (Notarized)
 *Required when the buyer does not have a registered Japanese seal (inkan)


If the buyer is a resident of Japan, a Resident Certificate (Juminhyo) and Seal Registration Certificate can be used instead.

3. Required Documents (Seller Side)

Standard Documents
•Certified Copy of Real Estate Registry (Title Register)
•Title Deed or Registration Identification Information
•Sales and Purchase Agreement
•Seal Registration Certificate (or signature verification if applicable)
•Fixed Asset Valuation Certificate
 *Used for tax and settlement purposes
If the Seller or Buyer Is Overseas
•Power of Attorney (POA)
 *Notarized in the home country
 *Apostille may be required
•Notarized Signature Certificate
•Affidavit of Address / Identity

4. Registration & Legal Procedures

Ownership Transfer Registration
•Conducted by a Japanese judicial scrivener (Shiho-Shoshi)
Required documents include:
•Sale contract
•Title deed / registration ID
•Signature or seal certificates
•Power of attorney (if applicable)

5. Notifications Under the Foreign Exchange and Foreign Trade Act (FEFTA)

Important (National Compliance)
•If the buyer is a non-resident of Japan,
→ A post-transaction notification must be filed within 20 days after purchase
•This is generally handled by the buyer or their bank
•Applies even to residential condominiums

6. National Security Considerations

Japan currently does not impose nationality-based restrictions on condominium purchases.
However, attention should be paid to the following:

A. Important Facility Areas

•Transactions involving land near:
 *Self-Defense Force bases
 *Critical infrastructure (airports, ports, power facilities)
•May fall under Special Monitoring Areas
 •Condominium units are generally low-risk, but location should still be checked

B. Anti-Social Forces Check (AML / KYC)

•Confirmation that the buyer is not affiliated with criminal or anti-social organizations
•Standard compliance check by real estate professionals

C. Source of Funds Verification

•Required under:
 *Act on Prevention of Transfer of Criminal Proceeds
•Especially important for:
 *Cash purchases
 *Large international transfers

7. Practical Transaction Considerations

Language Support
•English (or buyer’s native language) explanation of:
 *Important Matters Explanation
 *Sales Contract
Tax Matters
•Non-resident buyers may need:
 *Tax agent in Japan
Financing
•Non-residents often cannot obtain Japanese housing loans
Use of Professional Agents
•Judicial scrivener
•Tax accountant
•Bilingual real estate agent

8. Summary Checklist (Quick Reference)

Buyer

☐ Passport
☐ Address certificate
☐ Signature certificate / affidavit
☐ Residence card (if applicable)


Seller

☐ Title register
☐ Title deed / registration ID
☐ Fixed asset valuation
☐ Sales contract


Compliance

☐ FEFTA notification (if non-resident buyer)
☐ AML / source of funds check
☐ Location security check