Buying real estate in Japan?

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How to avoid common real estate scams in Japan?

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Authored by the expert who managed and guided the team behind the Japan Property Pack

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Everything you need to know before buying real estate is included in our Japan Property Pack

Property scams in the Japanese real estate market can cost foreign investors thousands of dollars and create lengthy legal complications.

As of September 2025, unlicensed agents and fake landlords are increasingly targeting international buyers who are unfamiliar with Japan's complex property verification systems. This comprehensive guide provides step-by-step methods to verify agent credentials, spot rental listing red flags, and use official government registries to confirm property ownership before making any payments.

If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Kyoto. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How can I check if a real estate agent in Japan is officially licensed and registered?

Licensed real estate agents in Japan must display a visible license number issued by either the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) or local prefectural governments.

Companies operating across multiple prefectures receive licenses from MLIT with numbers starting with "国土交通大臣" (Minister of Land, Infrastructure, Transport and Tourism), while single-prefecture operators get licenses from local governors with prefectural designations.

You can verify any agent's license status by searching the MLIT database online or contacting the relevant prefectural real estate association. The license search requires either the company name or specific license number, both of which legitimate agents must provide upon request.

As of September 2025, unlicensed operators face significant penalties, making license verification your first line of defense against fraudulent agents.

Always request to see the physical license certificate and cross-reference the information with official government databases before proceeding with any transactions.

What red flags should I watch for in Japanese rental listings?

Unusually low rent compared to neighborhood averages represents the most common red flag in fraudulent Japanese rental listings.

Legitimate rental prices in Tokyo's central wards typically range from ¥8,000-15,000 per square meter monthly, so listings significantly below these benchmarks warrant immediate suspicion. Scammers often use attractive pricing to lure victims into quick decisions before proper verification can occur.

Additional warning signs include poorly maintained building exteriors, copy-pasted photographs from other listings, vague or incomplete addresses, and pressure to pay deposits before property viewing. Legitimate landlords and agents never demand upfront payments without allowing thorough property inspection.

Be particularly cautious of listings that communicate exclusively through messaging apps rather than official business channels, refuse to provide company registration details, or claim multiple interested parties to create artificial urgency.

Cross-reference rental prices with similar properties in the same area using established platforms like Suumo or Homes to identify unrealistic pricing.

How can I verify the actual legal owner of a property?

Property ownership verification in Japan requires accessing the Real Estate Registry (不動産登記簿, fudosan tokibo) through official government channels.

The Legal Affairs Bureau (法務局, homukyoku) maintains comprehensive ownership records for all registered properties, including current and historical owner information with full names and addresses. You can obtain these records by visiting local bureau offices or using the online 登記情報提供サービス (Toki Joho Teikyo Service).

The registry documents show both land and building ownership separately, as these can have different owners in Japan's complex property system. Each entry includes the owner's legal name, registered address, acquisition date, and any mortgage or lien holders.

Online access requires creating an account and paying small fees (typically ¥300-500 per document), but provides immediate verification of ownership claims made by sellers or landlords.

Never accept verbal ownership claims or photocopied documents without cross-referencing against official registry records.

What official documents should I always request to confirm ownership?

Four essential documents provide comprehensive ownership verification for Japanese real estate transactions.

Document Type Japanese Name Information Provided
Land Registration Certificate 土地登記簿謄本 Land ownership, boundaries, encumbrances
Building Registration Certificate 建物登記簿謄本 Structure ownership, construction details, liens
Title Deed 権利書 Original ownership transfer documentation
Official Survey Map 公図 Precise land boundaries and adjacent properties
Property Tax Certificate 固定資産税評価証明書 Tax assessment value and payment status

How can I check for legal disputes, unpaid taxes, or hidden debts?

The Real Estate Registry provides comprehensive information about all legal encumbrances attached to Japanese properties.

Mortgage details, liens, and court-ordered seizures appear in the registry's "権利部" (rights section), showing creditor names, amounts, and registration dates. Any property with multiple mortgage holders or recent legal actions requires careful investigation before purchase.

Tax arrears checking requires consultation with local city hall offices, which maintain separate records for property tax payments. Unpaid property taxes can transfer to new owners, making verification essential before completing transactions.

Court records for ongoing legal disputes are available through the local family or district court system, though accessing these may require legal assistance for complex cases.

It's something we develop in our Japan property pack.

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What tricks do fake landlords or agents use to pressure foreigners?

Fraudulent landlords and agents in Japan commonly exploit foreigners' unfamiliarity with local real estate practices through high-pressure tactics.

  1. Artificial urgency creation - Claims of multiple interested parties or limited-time offers to prevent proper verification
  2. Cash-only payment demands - Requests for immediate cash deposits to avoid creating paper trails
  3. Communication app-only contact - Refusal to meet in person or provide official business contact information
  4. Document refusal - Unwillingness to provide official ownership documentation or company registration details
  5. Excessive fee justification - Complex explanations for unusually high deposits or key money amounts
  6. Language barrier exploitation - Using complex Japanese terminology to confuse non-native speakers
  7. Emergency relocation stories - Claims about sudden owner relocations requiring immediate decisions

What is the safest way to pay deposits and rent with legal protection?

Bank transfers provide the strongest legal protection for all real estate payments in Japan, creating clear documentation trails for potential disputes.

Never pay deposits, key money, or rent in cash, as this eliminates your ability to prove payment amounts and dates. Legitimate landlords and agencies accept bank transfers as standard practice and provide detailed receipts for all transactions.

Retain all bank transfer records, including recipient account details, transfer amounts, and transaction dates. These documents serve as legal evidence in case of disputes or fraudulent activity.

Payment timing should always follow property viewing and document verification - legitimate transactions never require upfront payments before these steps are completed.

Consider using escrow services for large purchase transactions, which hold funds until all conditions are met and ownership transfer is completed.

How can I use government registries and online tools to verify property details?

Japan's Ministry of Justice operates the 登記情報提供サービス (Registry Information Service) providing comprehensive property verification online.

The service requires account registration with identity verification, after which you can search properties by address, owner name, or registry number. Each search costs between ¥300-500 depending on document complexity, with instant digital delivery.

Local Legal Affairs Bureau offices provide the same information in person, often with staff assistance for document interpretation. These offices operate in every prefecture and maintain regular business hours for public access.

The online system covers both current and historical ownership records, mortgage information, and legal restrictions. Cross-reference this data with information provided by agents or sellers to identify discrepancies.

Always verify property details within 30 days of any planned transaction, as ownership changes and new encumbrances can be registered quickly.

infographics rental yields citiesJapan

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What contract clauses should I watch for to avoid hidden fees?

Japanese rental and purchase contracts often contain clauses that create unexpected financial obligations for foreign buyers unfamiliar with local practices.

Clause Type Common Issues Red Flags to Avoid
Maintenance Fees Undefined repair responsibilities Vague language about "necessary maintenance"
Renewal Conditions Automatic rent increases Percentage increases without market justification
Termination Penalties Excessive early exit fees Penalties exceeding 2-3 months rent
Key Money Clauses Non-refundable deposit confusion Unclear distinction from security deposits
Cleaning Requirements Professional cleaning mandates Specific company requirements at inflated rates

How do I protect myself when dealing with guarantor companies?

Guarantor companies (保証会社, hoshō gaisha) in Japan charge fees for rental guarantees but require careful contract review to avoid excessive charges.

Legitimate guarantor companies are registered businesses with clear fee structures, typically charging 0.5-1% of annual rent plus initial setup fees. Review all terms before signing and confirm the company's registration status through local business registries.

Avoid guarantor companies that demand excessive fees above market rates, require cash payments, or add undisclosed charges after initial agreement. Standard guarantor fees range from ¥20,000-50,000 for initial setup plus monthly charges of ¥2,000-5,000.

Request detailed fee breakdowns in writing and compare multiple guarantor company options before making decisions. Many legitimate companies provide services in English for international clients.

It's something we develop in our Japan property pack.

What steps should I take if I suspect I'm being scammed?

Immediate action is essential when real estate fraud is suspected in Japan, with several official channels available for assistance and reporting.

Contact your local police station or police box (交番, kōban) first to file an official fraud report. Police can investigate criminal activity and coordinate with other agencies for comprehensive response.

The Consumer Protection Centers (国民生活センター) operate nationwide hotlines providing advice and mediation services for real estate disputes. These centers offer multilingual support and can guide you through legal options.

Regional Legal Affairs Bureaus handle property-related fraud cases and can freeze transactions when fraudulent activity is confirmed. Contact them immediately if fake ownership documents or illegal registration changes are suspected.

Notify your embassy or consular office, especially if you're a foreign resident, as they can provide additional legal resources and coordinate with Japanese authorities on your behalf.

What reliable resources exist for foreigners seeking verified property advice?

Several established organizations in Japan specialize in providing verified real estate advice specifically for international clients.

Japan Property Central operates as a comprehensive resource for foreign buyers, offering market analysis, legal guidance, and agent recommendations. Their services include property verification and transaction oversight for international clients.

Real Estate Japan provides multilingual support and maintains databases of licensed agents with foreign client experience. They offer both rental and purchase guidance with emphasis on legal compliance and fraud prevention.

Local international support centers operate in major cities, providing housing assistance and legal referrals for foreign residents. These centers often maintain relationships with verified real estate professionals and can facilitate introductions.

Embassy and consular offices maintain lists of recommended legal professionals and real estate services, though they cannot guarantee specific transactions or outcomes.

It's something we develop in our Japan property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. I-Interface Real Estate Brokerage System Guide
  2. Japanese Law Translation - Real Estate Regulations
  3. Reddit Moving to Japan - Property Ownership Verification
  4. Arrows Realty - Choosing Real Estate Agencies
  5. Unlock Japan - Rental Listing Scams
  6. Tokyo Room Finder - Apartment Red Flags
  7. Solid Real Estate Japan - Legal Documents Guide
  8. MLIT Real Estate Policy Guidelines