Completion Time Frame: 1 day (simultaneous with Steps 2, 3, and 4)
Completion Costs: JPY 1,000 each copy
Points to Note:
The parties (as companies) must obtain a corporate registry certificate that must be issued within 3 months before the registration application. It can be obtained from a relevant Registry Office, or at a corporate registry at which the party is registered. The cost is JPY 1,000 per copy.

Step 2: Obtain a certificate of the parties’ seal impression

Completion Time Frame: 1 day (simultaneous with Steps 1, 3, and 4)
Completion Costs: JPY 500 each copy
Points to Note: The parties must obtain a certificate of their seal impression (the seal used for execution of the registration documents), that must be issued within 3 months before the registration application. It can be obtained from a relevant Registry Office, or at a corporate registry at which the party is registered. The cost is JPY 500 per copy for a seal of a corporation.

Step 3: The seller obtains a certificate of evaluation for fixed asset tax of the real property at a local tax office

Completion Time Frame: 1 day (simultaneous with Steps 1, 2, and 4)
Completion Costs: JPY 400 for land + JPY 400 for building
Points to Note:
The seller must obtain a certificate of evaluation for fixed asset tax of the real property before the registration application. This should be obtained for the transaction because such certificate must show the most updated evaluation and will be used later to calculate taxes to be paid. It can be obtained from a relevant local tax office, which governs the relevant real estate.
The cost of the issuance is JPY 800 (JPY 400 for land + JPY 400 for building) per piece of real property.

Step 4: Obtain stamps for stamp duty at a post office

Completion Time Frame: 1 day (simultaneous with Steps 1, 2, and 3)
Completion Costs: JPY 80,000
Points to Note:
Stamps for stamp duty can be purchased at various places, such as post offices. Stamp is the sole official cost for execution of the sale agreement, if a written agreement is prepared.
The preparation and execution of a written sale agreement is not necessary. Even an oral agreement is acceptable for transferring the title to the real estate, although usually a written agreement is prepared.

Step 5: File an application at the Legal Affairs Bureau

Completion Time Frame: 7-10 days
Completion Costs: 1.5% (or 1% of building value + 2% land value) of entire property value evaluated for fixed asset tax (registration and license tax )
Points to Note:
The parties file an application for registration at the Legal Affairs Bureau. The Legal Affairs Bureau will register the title under the name of the new owner.
A registration and license tax must be paid at the Legal Affairs Bureau at the amount of 1% building value + 2% land value (in our study, 1.5% of the entire property value). The normal tax rate is higher, but the reduced tax rate is applicable until March 31, 2008, unless the law providing such reduced rate is extended.
As registration is a requirement for perfection vis-à-vis third parties, reviewing the certified copy of the real property registry is generally sufficient for identifying any existing perfected encumbrances over the real property. The parties may apply for registration by themselves. However, because of the complexity of filing, usually they retain a judicial scribe for registration.
There is a 5% consumption tax in Japan. Sales or leases of land are exempted. However, if the transaction includes the sale or lease of buildings, consumption tax applies only to the price of the building.

The documentation shall include:
• Executed original copy of the purchase and sale agreement (alternately a copy of registration application signed by the seller and the buyer)
• Certificate of registration of seller’s title of the real property (toukizumi kenri sho) (Already in his possession)
• Certificate of corporate registry of the parties (if any of them is a corporation) (obtained in Step 1)
• Certificate of the parties’ seal impression (obtained in Step 2)
• Certificate of evaluation for fixed asset tax of the real property (obtained in Step 3)
• Power of attorney of the seller (if a judicial scribe applies for the registration on behalf of any of the parties)

Step 6: Payment of the real property acquisition tax

Completion Time Frame: 1 day
Completion Costs: 3.5% of property price evaluated for fixed asset tax
Points to Note:
This is a post-closing matter, the purchaser will receive the notice of the real property acquisition tax from the local tax office a few months after the registration. The real property acquisition tax must be paid at the local tax office. Actually, 4% is the normal tax rate. The 3.5% reduced tax rate is applicable until March 31, 2008, unless the law providing such reduced rate is extended.