
Buying Property as an Offshore Buyer
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Buying a Property as an Offshore Buyer
Buying a property in Japan as a non-resident (非居住者 He-kyo-jusha) can present a few challenges. Having to make a few trips to Japan is one challenge, but the biggest challenge can be making an international money transfer which can take time and delays can affect the timing of settlement. Not only can it result in you not being able to meet your settlement deadline, but it can also make it difficult for payment and ownership title transfer to occur simultaneously or in close succession, as is generally advised.
Simultaneous payment and title transfer offers benefits and protections for both parties involved in the transaction, since you can obtain ownership title immediately once your payment is made, and the seller is able to transfer their ownership title as soon as your payment is received in full. Normally, you would not like any interruptions between payment and title transfer as that may potentially put you at some risk.
One way to avoid this is by entrusting a legal professional, your real estate agent, or your acquaintance in Japan to make payments for you to ensure a simultaneous payment and title transfer. But if you choose to make the payment yourself, one option is to negotiate with the seller to keep their title deed with a judicial scrivener (referred to as lawyer, escrow, etc., in other countries) approved by both parties. This will ensure the ownership title will not be transferred while your money is being transferred from overseas. Please note that not all sellers will be willing to accept such special arrangements when selling to a non-resident. If this is the case, you should consider entrusting someone to make the payment for you.
