Authored by the expert who managed and guided the team behind the Japan Property Pack
Everything you need to know before buying real estate is included in our Japan Property Pack
Japan is a high rule-of-law country with a paperwork-heavy property system, which is actually good news for careful foreign buyers.
The biggest risks in Japan are not corruption or a broken legal system, but misunderstanding Japan-specific property rules or trusting the wrong intermediary.
We constantly update this blog post to reflect the latest changes in Japanese real estate regulations and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Japan.
How risky is buying property in Japan as a foreigner in 2026?
Can foreigners legally own properties in Japan in 2026?
As of early 2026, foreigners can legally buy and own residential property in Japan, including both land and buildings, without needing to be a resident or citizen.
The main condition to be aware of is that properties near military bases, border islands, or other sensitive facilities may fall under Japan's "important land" monitoring rules, which can trigger extra notification requirements but do not ban foreign ownership outright.
Since direct ownership is generally permitted, foreigners in Japan rarely need special legal structures like nominee arrangements or local company setups that are common in other Asian countries.
[VARIABLE FOREIGNER-RIGHTS]What buyer rights do foreigners actually have in Japan in 2026?
As of early 2026, foreigners in Japan have essentially the same legal buyer protections as Japanese citizens, including the right to verify ownership through the public registry and to hold sellers accountable for contract breaches.
If a seller breaches a contract in Japan, a foreign buyer can pursue remedies through Japanese courts, including contract cancellation, damages, or specific performance, though litigation is slow and expensive compared to simply doing proper due diligence upfront.
The most common buyer right that foreigners mistakenly assume they have in Japan is full disclosure of a property's history, especially regarding deaths in the unit, which follows specific Japanese guidelines that are more limited than what many Western buyers expect.
How strong is contract enforcement in Japan right now?
Japan ranks 14th out of 142 countries in the World Justice Project Rule of Law Index 2024, scoring particularly well on civil justice (12th) and regulatory enforcement (15th), which means contract enforcement is significantly more reliable than in most of Southeast Asia, Latin America, or Southern Europe.
However, the main weakness foreigners should know is that even in Japan's strong legal system, real estate litigation is slow and costly, so the practical reality is that prevention through proper verification beats relying on courts after something goes wrong.
By the way, we detail all the documents you need and what they mean in our property pack covering Japan.
Buying real estate in Japan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Japan right now?
Are scams against foreigners common in Japan right now?
Real estate scams targeting foreigners in Japan are not widespread compared to many other countries, but they do occur often enough that you should expect to encounter at least a few suspicious situations during your property search, especially if you browse broadly online.
The property transactions most frequently targeted by scammers in Japan are "akiya" (abandoned house) bargains in rural areas, budget condos in tourist-heavy zones like Niseko and Hakuba, and investment properties marketed aggressively to overseas buyers who cannot easily visit.
The foreign buyer profile most commonly targeted in Japan is someone who prioritizes English-language convenience over verified credentials, appears rushed or emotionally attached to a deal, and has limited understanding of Japanese property registration systems.
The single biggest warning sign that a deal may be a scam in Japan is being asked to pay money, whether called a "holding deposit," "application fee," or "translation fee," before you have obtained and verified the official registry extract for the property.
What are the top three scams foreigners face in Japan right now?
The top three scams foreigners face in Japan are unlicensed middlemen who collect fees but have no authority to complete the transaction, title confusion where you pay someone who is not actually authorized to sell, and the "cheap akiya trap" where a bargain rural home comes with hidden demolition costs, access problems, or rebuilding restrictions.
The most common scam, the unlicensed middleman scheme, typically unfolds when a "friendly helper" or online contact offers to facilitate a great deal, asks for an upfront payment for services like translation or reservation, and then either disappears or hands you off to another party who claims no responsibility.
The most effective protection against each scam is straightforward: for unlicensed middlemen, verify the broker's license through MLIT's official database before paying anything; for title confusion, always obtain the certified registry extract and match the owner's name to the seller's ID; for cheap akiya traps, hire a local surveyor and building inspector before committing.
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.
How do I verify the seller and ownership in Japan without getting fooled?
How do I confirm the seller is the real owner in Japan?
The standard verification process in Japan is to obtain the official registry extract (called "touki jiko shomeisho") for both the land and building, then match the registered owner's name and address against the seller's identification documents before paying any deposit.
The official document foreigners should check is the certified registry extract issued by the Legal Affairs Bureau, which you can request online or in person, and which shows the current registered owner along with any recorded rights or encumbrances.
The most common trick fake sellers use in Japan, which sometimes happens especially with inheritance properties, is claiming to act on behalf of an absent owner or presenting outdated documents, so you should always require current registry extracts and written authorization if someone claims representative authority.
Where do I check liens or mortgages on a property in Japan?
In Japan, liens and mortgages are recorded in the same real property register where ownership is documented, so you check them by obtaining the certified registry extract from the Legal Affairs Bureau, which lists all registered encumbrances on that specific property.
When checking for liens in Japan, you should specifically request the "all matters" certificate which shows the complete history of recorded rights, including mortgages, leases, easements, and any court-ordered restrictions.
The type of encumbrance most commonly missed by foreign buyers in Japan is condominium-related debt, such as unpaid management fees or repair fund contributions, which may not appear on the land registry but transfer to the new owner, so you must separately request financial records from the building management association.
It's one of the aspects we cover in our our pack about the real estate market in Japan.
How do I spot forged documents in Japan right now?
The most common type of forged document in Japanese property scams is a fake or altered registry extract, though this is rare in Japan because the official issuance system is robust and most sophisticated buyers know to obtain documents directly from government channels.
Red flags that a document may be forged in Japan include receiving only scanned copies by email instead of certified originals, inconsistencies in official stamps or formatting, reluctance from the other party to let you obtain fresh documents yourself, and any pressure to skip the verification step.
The official verification method in Japan is to request your own certified registry extract directly through the Legal Affairs Bureau's online system or at a local office, which costs a few hundred yen and takes only a day or two, ensuring you have an authentic document issued to you rather than relying on what someone else provides.
Get the full checklist for your due diligence in Japan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Japan?
What hidden costs surprise foreigners when buying a property in Japan?
The three most common hidden costs that foreigners overlook in Japan are monthly condo management fees and repair reserve funds (typically 15,000 to 40,000 yen per month, or roughly 100 to 270 USD / 90 to 250 EUR), one-time registration and judicial scrivener fees (around 200,000 to 500,000 yen, or 1,300 to 3,300 USD / 1,200 to 3,100 EUR), and real estate acquisition tax which arrives months after purchase (usually 3 to 4 percent of the assessed value).
The hidden cost most often deliberately concealed by sellers or agents in Japan, which sometimes happens especially with older condos, is upcoming major repair assessments or existing owner delinquencies in the building's reserve fund, which can result in surprise bills of 500,000 to 2,000,000 yen (3,300 to 13,300 USD / 3,100 to 12,400 EUR) shortly after you buy.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Japan.
Are "cash under the table" requests common in Japan right now?
Unlike many other real estate markets, "cash under the table" requests to reduce the official sale price are not common in mainstream Japanese residential transactions, especially when working with licensed brokers, because Japan's strong regulatory environment and detailed paper trails make such arrangements risky for all parties.
In the rare cases where undeclared payments are requested in Japan, the typical reason given is to help the seller reduce capital gains tax liability or to keep the transaction "simple," often when dealing directly with a private seller or through an informal introduction.
If a foreigner agrees to an undeclared cash payment in Japan, they face serious legal risks including potential prosecution for tax evasion, difficulty proving the full purchase price if disputes arise later, and complications with future resale documentation or mortgage applications.
Are side agreements used to bypass rules in Japan right now?
Side agreements in Japan are sometimes used, though not typically to evade taxes like in some countries, but rather to handle informal promises about repairs, fixtures, vacancy timing, or other conditions that parties do not want to formalize in the main contract.
The most common type of side agreement in Japanese property transactions is a verbal or informal written understanding about what will be fixed, left behind, or completed before handover, which sellers may later deny or interpret differently than the buyer expected.
If a side agreement is discovered to conflict with official filings or if it was used to misrepresent the transaction to tax authorities, foreigners in Japan face risks including voided protections, tax penalties, and potential civil liability, though outright criminal consequences are rare for typical residential deals.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Japan in 2026?
Are real estate agents regulated in Japan in 2026?
As of early 2026, real estate agents in Japan are well-regulated under a national licensing system administered by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which requires brokers to pass an examination, register their business, and follow strict conduct and disclosure rules.
A legitimate real estate agent in Japan should hold a "takuchi tatemono torihiki gyosha" license, which is the official housing land and building transaction business license, and their company should be registered with either the prefectural governor (for single-prefecture operations) or the Minister of MLIT (for multi-prefecture operations).
Foreigners can verify whether an agent is properly licensed in Japan by searching the MLIT's official online database, and they should also check the separate "negative information" database that lists brokers who have received administrative disciplinary actions.
Please note that we have a list of contacts for you in our property pack about Japan.
What agent fee percentage is normal in Japan in 2026?
As of early 2026, the normal agent fee in Japan follows a regulated cap formula that works out to approximately 3 percent of the purchase price plus 60,000 yen, plus 10 percent consumption tax, which means on a 50 million yen home you would pay roughly 1.7 million yen (around 11,300 USD or 10,500 EUR) to your agent.
The typical range of agent fees in Japan for residential transactions above 4 million yen is between 3 and 3.3 percent of the purchase price after including consumption tax, and it is unusual to negotiate significantly below this cap in standard transactions.
In Japan, it is common for both the buyer and the seller to have their own separate agents, with each party paying their own agent's fee, so the total brokerage cost in the system is often around 6 percent split between both sides rather than one party bearing the entire burden.
Get the full checklist for your due diligence in Japan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Japan?
What structural inspection is standard in Japan right now?
The standard structural inspection process in Japan for existing homes involves hiring an independent inspector to evaluate the building's condition before purchase, though unlike some countries this is not mandatory, so buyers must proactively arrange it themselves.
A qualified inspector in Japan should check the foundation for cracks or settlement, roof and exterior walls for water intrusion, wooden structural elements for termite damage and rot, and any additions or modifications for compliance with building codes.
The professionals qualified to perform structural inspections in Japan include licensed architects (kenchikushi), certified home inspectors (who have emerged more recently), and specialized firms that focus on pre-purchase building diagnostics.
The most common structural issues that inspections reveal in Japanese properties, especially older wooden houses, are water damage and mold from deferred maintenance, termite damage in structural timber, and unpermitted additions that may create problems for insurance, rebuilding, or resale.
How do I confirm exact boundaries in Japan?
The standard process for confirming property boundaries in Japan is to obtain the official cadastral maps and plot diagrams from the Legal Affairs Bureau, then compare these documents against the physical markers on the ground, ideally with a licensed land surveyor if anything looks irregular.
The official document showing legal boundaries in Japan is the cadastral map (chiseki-zu) and the land plot diagram (tochi sokuryo-zu) associated with the property's registration, both of which can be requested through the same Legal Affairs Bureau system used for registry extracts.
The most common boundary dispute affecting foreign buyers in Japan involves unclear access rights, shared driveways, or narrow private roads where the property technically has no direct public road frontage, which can severely limit rebuilding options and resale value.
To physically verify boundaries on the ground in Japan, you should hire a licensed land surveyor (tochi kaoku chosashi) who can locate official markers, identify any discrepancies with registered documents, and produce a formal survey report if needed.
What defects are commonly hidden in Japan right now?
The top three defects that sellers in Japan frequently conceal from buyers are water intrusion and mold damage (common, especially in older buildings), termite damage in wooden structures (common in houses over 20 years old), and "psychological stigma" issues such as deaths in the property (sometimes happens, with disclosure varying based on MLIT guidelines rather than a universal rule).
The inspection techniques that help uncover hidden defects in Japan include moisture meters and thermal imaging cameras for water damage, professional termite inspections that probe wooden elements, and simply asking direct written questions about the property's history, including deaths, which forces sellers to respond on record.
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in Japan?
What do foreigners say they did wrong in Japan right now?
The most common mistake foreigners say they made when buying property in Japan is trusting verbal assurances or agent narratives without independently pulling and verifying the official registry documents early in the process.
The top three regrets foreigners mention after buying in Japan are prioritizing English-speaking convenience over licensed and verified professionals, underestimating the ongoing costs of condos (management fees, reserve funds, special assessments), and assuming disclosure norms around property history would match their home country.
The single piece of advice experienced foreign buyers most often give to newcomers in Japan is to treat the registry extract as non-negotiable and obtain it yourself before paying any meaningful deposit or signing anything binding.
The mistake that cost foreigners the most money or stress in Japan is buying a "cheap" rural akiya without properly investigating rebuilding permissions, road access rights, and boundary clarity, which turned apparent bargains into expensive problems.
What do locals do differently when buying in Japan right now?
The key difference in how locals approach buying property compared to foreigners in Japan is that Japanese buyers tend to be far less romantic about "character" or "potential" and focus intensely on practical factors like road access width, rebuilding permissions, and whether the property sits in a designated disaster risk zone.
The verification step that locals routinely take but foreigners often skip in Japan is checking the condo management association's financial health and meeting minutes, which reveals upcoming major repairs, owner delinquency rates, and governance problems that do not appear in any registry document.
The local knowledge advantage that helps Japanese buyers get better deals is their understanding of the "setsudo" (road frontage) rules, which determine whether a property can legally be rebuilt, and their network access to properties sold quietly through local real estate offices before they hit major listing portals.
Don't buy the wrong property, in the wrong area of Japan
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Japan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Ministry of Justice (MOJ) | Japan's primary government authority on land and building registration. | We used it to explain how ownership and mortgages are publicly recorded in Japan. We also used it to anchor the title and lien verification steps. |
| Legal Affairs Bureau | Official channel for requesting certified registry documents in Japan. | We used it to show the practical way buyers obtain certified registry extracts. We referenced its fee and timing details for verification recommendations. |
| Japanese Law Translation (Real Estate Brokerage Act) | Government's official English translation of Japan's brokerage statute. | We used it to explain why licensed brokers are regulated. We also used it to frame common broker-related pitfalls and fee structures. |
| MLIT Licensed Broker Search | Government lookup tool for licensed real estate operators in Japan. | We used it to give a concrete way to verify an agent's license. We built our trust-but-verify workflow around this database. |
| MLIT Negative Information Database | Official database for administrative actions against Japanese brokers. | We used it to show how to screen for disciplined brokers. We recommended checking it before signing any agreement. |
| MLIT Disclosure Guidelines (Stigmatized Properties) | Official ministry guideline on death disclosure in residential transactions. | We used it to explain Japan's unique disclosure grey zone. We proposed specific questions buyers should ask in writing. |
| Cabinet Office (Important Land Regulation) | Official site explaining Japan's monitoring rules near sensitive facilities. | We used it to flag a Japan-specific non-obvious risk for foreign buyers. We advised a simple location check early in due diligence. |
| Statistics Bureau of Japan (Housing and Land Survey) | Japan's official housing stock survey with vacancy and condition data. | We used it to contextualize Japan's housing reality including akiya dynamics. We explained why cheap homes can still be risky. |
| World Justice Project (Rule of Law Index) | Widely cited international index based on structured surveys. | We used it to assess Japan's contract enforcement strength. We used factor rankings to set realistic dispute outcome expectations. |
| National Consumer Affairs Center (NCAC) | Japan's national hub for consumer complaints and education. | We used it to reinforce where foreign buyers can seek guidance. We identified common harm patterns from their data. |
| OECD Housing Prices Indicator | Standardized cross-country housing metrics with transparent definitions. | We used it to frame Japan's market with internationally comparable data. We supported the idea that Japan's risk is often property-specific. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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