Authored by the expert who managed and guided the team behind the Japan Property Pack
Yes, the analysis of Tokyo's property market is included in our pack
Tokyo remains one of the safer major cities in the world for foreigners to buy property, but that does not mean you can skip your homework.
We constantly update this blog post to reflect the latest scams, grey areas, and insider knowledge that foreign buyers need to know before purchasing residential property in Tokyo.
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 Tokyo.
How risky is buying property in Tokyo as a foreigner in 2026?
Can foreigners legally own properties in Tokyo in 2026?
As of early 2026, foreigners can legally buy and own residential property in Tokyo with the same rights as Japanese citizens, with ownership recorded in Japan's official real property registry.
The main restriction to be aware of is not about nationality but about location: if you buy property in certain "special monitored areas" near military bases, airports, or sensitive government facilities, you may need to submit a notification to the Cabinet Office before completing the purchase.
Since direct ownership is fully permitted in Tokyo, foreigners do not need to use any special legal structure like a company or trust to hold residential property, although some investors still choose to buy through a Japanese corporation for tax or succession reasons.
[VARIABLE FOREIGNER-RIGHTS]What buyer rights do foreigners actually have in Tokyo in 2026?
As of early 2026, foreign buyers in Tokyo have essentially the same legal rights as Japanese buyers, including the ability to register ownership, take legal action against breach of contract, and enforce property rights through Japanese courts.
If a seller breaches a contract in Tokyo, you can pursue remedies through Japan's court system, which has strong rule-of-law scores and systematic civil procedures, though legal disputes still take time and money even when you are in the right.
The most common mistaken assumption is that you can easily cancel a purchase after signing or that verbal promises from agents are legally binding, when in reality the written contract and official disclosures are what Japanese courts will enforce.
How strong is contract enforcement in Tokyo right now?
Contract enforcement in Tokyo is reliable and predictable compared to many other global real estate markets, with Japan scoring in the top tier of the World Justice Project's Rule of Law Index, similar to countries like Germany and France.
The main weakness foreigners should know about is that even when you are legally right, resolving disputes through Japanese courts can be slow and expensive, and language barriers can complicate the process significantly.
By the way, we detail all the documents you need and what they mean in our property pack covering Tokyo.
Buying real estate in Tokyo 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 Tokyo right now?
Are scams against foreigners common in Tokyo right now?
Real estate scams in Tokyo are not as common as in many other global cities, but foreigners shopping in English-only channels or attending "investment seminars" should assume they will encounter at least one misleading offer during their search.
The transaction type most frequently targeted by scammers in Tokyo is the small "investment condo" marketed to foreigners with inflated price tags and rosy rental yield projections that do not match reality.
The foreign buyer profile most commonly targeted is someone who does not speak Japanese, is in a hurry to close, and relies entirely on a single agent without independent verification.
The single biggest warning sign that a deal may be problematic in Tokyo is pressure to sign quickly without time to review building documents, registry records, or comparable sales data.
What are the top three scams foreigners face in Tokyo right now?
The top three scams targeting foreigners in Tokyo are: (1) the "investment condo overpayment trap" where the property is real but the price is inflated far above comparable sales, (2) the "condo building financial landmine" where you buy a unit in a building with a weak repair reserve fund that will hit you with surprise assessments, and (3) the "disaster risk mismatch" where you buy waterfront property without understanding liquefaction or flood exposure.
The most common scam unfolds like this: you attend a seminar or respond to an online ad, an agent shows you a small condo in Shinjuku or Minato, quotes impressive rental yields, pressures you to sign within days, and you later discover you paid 20% more than market value while the building has deferred maintenance costs coming.
To protect yourself from these three scams, always (1) verify pricing against official transaction data from MLIT or REINS before signing, (2) demand the full building management documents including repair reserve balance and long-term repair plan, and (3) check Tokyo's official hazard maps for liquefaction and flood risk at your specific address.
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 Tokyo without getting fooled?
How do I confirm the seller is the real owner in Tokyo?
The standard verification process in Tokyo is to obtain the official property registry certificate (登記事項証明書) directly from the Legal Affairs Bureau, which shows the registered owner, any mortgages, and other rights attached to the property.
You should check the registry certificate yourself or have your lawyer obtain it through the official online system at the Legal Affairs Bureau, and then match the owner name and address on the certificate to the seller's identification documents.
The most common trick used by questionable sellers in Tokyo is not outright forgery but rather providing outdated registry extracts or having someone sell via "power of attorney" without proper verification, and while this is rare in mainstream transactions, it becomes more common in private deals outside licensed brokers.
Where do I check liens or mortgages on a property in Tokyo?
The official place to check liens and mortgages on any property in Tokyo is the same real property registry (登記簿) at the Legal Affairs Bureau, where all registered mortgages, pledges, and other encumbrances must be recorded to be legally enforceable.
When requesting the registry certificate, you should specifically review the "Otsu" section (乙区) which lists all rights other than ownership, including mortgages, lease rights, and any provisional registrations that could affect your purchase.
The type of encumbrance most commonly missed by foreign buyers in Tokyo is pending special assessments from the condo management association or undisclosed building repair liabilities, which do not appear on the property registry but transfer to the new owner upon purchase.
It's one of the aspects we cover in our our pack about the real estate market in Tokyo.
How do I spot forged documents in Tokyo right now?
Outright document forgery is rare in Tokyo's mainstream real estate market thanks to the strong registry system, but what sometimes happens is selective disclosure where sellers provide incomplete documents, outdated registry extracts, or skip translating unfavorable clauses.
Red flags that suggest something may be wrong include: registry certificates that are more than a few weeks old, documents provided only as photos or screenshots rather than official stamped copies, and any reluctance to let you obtain documents directly from official sources.
The official verification method in Tokyo is to pull the registry certificate yourself through the Legal Affairs Bureau's online system or in person, and for any critical document, insist on either the original official version or professional verification by your lawyer.
Get the full checklist for your due diligence in Tokyo
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 Tokyo?
What hidden costs surprise foreigners when buying a property in Tokyo?
The three most common hidden costs foreigners overlook in Tokyo are: (1) condo management fees and repair reserve fund contributions which can total 25,000 to 50,000 yen per month (around 170 to 340 USD or 155 to 310 EUR), (2) real estate acquisition tax which can be 3% to 4% of the assessed value, and (3) agent commission of about 3% plus 60,000 yen plus consumption tax.
The hidden cost most often deliberately downplayed by agents in Tokyo is the upcoming special assessment or repair reserve fund increase that the building management association has already planned but not yet implemented, and this sometimes happens when agents want to close quickly before the news becomes official.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Tokyo.
Are "cash under the table" requests common in Tokyo right now?
In mainstream residential purchases through licensed brokers in Tokyo, "cash under the table" requests are uncommon because Japan has strong anti-money laundering systems and a culture of documented transactions.
When such requests do appear in Tokyo, they typically come from renovation contractors or small service providers who offer a "discount for cash" rather than from the main property transaction itself.
If you agree to any undeclared payment in Tokyo, you risk being complicit in tax evasion, losing legal recourse if something goes wrong, and potentially triggering scrutiny under Japan's foreign exchange and anti-money laundering regulations.
Are side agreements used to bypass rules in Tokyo right now?
Side agreements in Tokyo property transactions are not common in standard residential purchases, but they do appear in two specific areas: "guaranteed rent" promises that are not aligned with actual building rules, and verbal agreements about property condition that sellers try to keep off the official disclosure forms.
The most common type of side agreement in Tokyo involves informal promises about rental income, Airbnb potential, or building renovations that are never written into the official contract and therefore cannot be enforced.
If a side agreement is discovered by Japanese authorities, the consequences can include the agreement being declared void, tax penalties if it was used to reduce declared transaction value, and potential issues with your ownership registration if the side deal contradicts official records.
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 Tokyo in 2026?
Are real estate agents regulated in Tokyo in 2026?
As of early 2026, real estate agents in Tokyo are regulated under Japan's Building Lots and Buildings Transaction Business Act, which requires agents to hold a license, follow standardized disclosure procedures, and maintain a physical office registered with the prefectural government.
A legitimate real estate agent in Tokyo should have a "Takuchi Tatemono Torihiki Gyosha" (宅地建物取引業者) license number displayed at their office and on their business materials, and at least one certified "Takuchi Tatemono Torihiki Shi" (宅地建物取引士) must be involved in each transaction.
To verify if an agent is properly licensed in Tokyo, you can check the Ministry of Land, Infrastructure, Transport and Tourism's online database or ask to see their license certificate, which includes their registration number and the supervising prefecture.
Please note that we have a list of contacts for you in our property pack about Tokyo.
What agent fee percentage is normal in Tokyo in 2026?
As of early 2026, the standard agent commission in Tokyo for a property purchase is approximately 3% of the purchase price plus 60,000 yen, plus 10% consumption tax, which works out to roughly 3.3% of the total price for most transactions.
The typical range of agent fees in Tokyo covers most transactions between 3% and 3.5% of the purchase price after tax, with some variation depending on the property value and whether both buyer and seller use the same agent.
In Tokyo, it is common practice for the buyer to pay a commission to their agent and the seller to pay a commission to their agent, though in "double-ended" deals where one agent represents both sides, that agent may collect fees from both parties up to the legal maximum.
Get the full checklist for your due diligence in Tokyo
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 Tokyo?
What structural inspection is standard in Tokyo right now?
In Tokyo, structural inspections for residential property purchases are increasingly common but not mandatory, and for older properties or standalone houses, hiring an independent inspector is strongly recommended even if the agent does not suggest it.
A qualified inspector in Tokyo should check the building's seismic standard era (pre or post the 1981 building code revision), foundation condition, signs of water intrusion, termite damage for wooden structures, and for condos, the condition of common areas and the realism of the long-term repair plan.
The professionals qualified to perform structural inspections in Tokyo include licensed first-class architects (一級建築士) and certified home inspectors, and for condos you should also review the building management company's maintenance reports.
The most common structural issues that inspections reveal in Tokyo properties are water damage from past leaks, insufficient earthquake retrofitting in pre-1981 buildings, and deteriorating waterproofing on roofs and balconies in older condos.
How do I confirm exact boundaries in Tokyo?
The standard process for confirming property boundaries in Tokyo is to review the registry map (公図) and the survey plan (地積測量図) held at the Legal Affairs Bureau, though these documents may be outdated for older properties.
The official document showing legal boundaries in Tokyo is the registered survey plan, but for landed houses you should also check whether the neighboring property owners have signed a boundary confirmation agreement (境界確認書) in the past.
The most common boundary dispute affecting foreign buyers in Tokyo involves older standalone houses where the registered boundaries do not match the actual fences or walls on the ground, which can create problems when you try to rebuild or sell.
If you need physical verification of boundaries in Tokyo, you should hire a licensed land surveyor (土地家屋調査士) who can measure the property and, if necessary, negotiate boundary agreements with neighboring owners.
What defects are commonly hidden in Tokyo right now?
The top three defects that sellers in Tokyo commonly conceal are: (1) underfunded building repair reserves and upcoming special assessments (common in older condos), (2) prior water leakage or mold damage that was cosmetically repaired but not properly fixed (sometimes happens), and (3) unpermitted renovations or modifications that could create problems with future sales or insurance.
The most effective inspection technique for uncovering hidden defects in Tokyo is to combine a physical inspection by a licensed architect with a thorough review of the building management documents, including meeting minutes, repair history, and the current reserve fund balance.
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 Tokyo?
What do foreigners say they did wrong in Tokyo right now?
The most common mistake foreigners report making when buying property in Tokyo is prioritizing the neighborhood brand name (like Minato or Shibuya) over the actual building fundamentals like management quality, repair reserves, and building age.
The top three regrets foreigners frequently mention after buying in Tokyo are: (1) not checking the condo building's financial health before purchase, (2) underestimating the total monthly carrying costs including management fees and repair reserves, and (3) trusting an English-speaking agent's verbal assurances without independently verifying documents.
The single piece of advice experienced foreign buyers most often give to newcomers in Tokyo is to pull the registry documents yourself and demand the full building management records before signing anything, even if the agent says it is unnecessary.
The mistake that cost foreigners the most money or stress in Tokyo is buying a "cheap" unit in an older building without realizing that a major repair assessment was coming, sometimes adding millions of yen in unexpected costs within the first few years of ownership.
What do locals do differently when buying in Tokyo right now?
The key difference is that Japanese buyers in Tokyo obsessively check the condo management association's financial health, including the repair reserve balance, delinquency rate among other owners, and the long-term repair plan, before they even seriously consider a unit.
A verification step that locals routinely take but foreigners often skip in Tokyo is reviewing the building's meeting minutes (総会議事録) from the past several years, which reveal ongoing disputes, planned assessments, and management issues that never appear in marketing materials.
The local knowledge advantage that helps Japanese buyers get better deals in Tokyo is understanding which management companies have good reputations, which buildings in a given area have problematic histories, and how to interpret the subtle signals in building documents that indicate future problems.
Don't buy the wrong property, in the wrong area of Tokyo
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 Tokyo, 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) | Official Japanese government source for the real property registry system. | We used it to explain how ownership verification works in Tokyo. We based our "pull the registry yourself" guidance on their official procedures. |
| Japanese Law Translation Portal | Government-backed official translations of Japanese statutes. | We used it to verify agent licensing requirements and buyer protections. We grounded our legal claims in the actual Real Estate Brokerage Act text. |
| Ministry of Land, Infrastructure, Transport and Tourism (MLIT) | Central government ministry responsible for real estate regulation. | We used their legal overview to map transaction costs and regulatory requirements. We referenced their transaction price system for price verification guidance. |
| Cabinet Office | Official source for special monitored area designations in Japan. | We used it to explain location-based notification requirements. We built the "special monitored area" warning based on their official zone designations. |
| REINS (Real Estate Information Network System) | Official broker network data for Greater Tokyo transactions. | We used their market statistics to validate pricing and fee norms. We referenced their data to support claims about typical transaction patterns in Tokyo. |
| Japan Real Estate Institute (JREI) | Long-standing research institution with transparent index methodology. | We used their price indices to describe Tokyo market momentum. We anchored our "recent price trends" section in their published data. |
| World Justice Project Rule of Law Index | Widely cited global benchmark for contract enforcement reliability. | We used it to compare Tokyo's legal system strength to other countries. We supported our "contract enforcement is reliable" claim with their scores. |
| Transparency International | Leading global benchmark for public-sector corruption perception. | We used their Japan profile to assess bribery and corruption risk. We grounded our "cash under the table is uncommon" claim in their data. |
| Tokyo Metropolitan Government Disaster Prevention Guide | Official Tokyo government publication on disaster risks. | We used it to explain earthquake, liquefaction, and flood risks specific to Tokyo. We built our hazard-check recommendations on their official guidance. |
| Consumer Affairs Agency (CAA) PIO-NET | Government consumer regulator analyzing national complaint data. | We used their complaint trends to estimate scam prevalence in Tokyo. We grounded our "high-pressure sales" warnings in their documented patterns. |
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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