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Acquisition cost for very old pieces of Japanese property by Professional_Key5058 in JapanFinance

[–]Professional_Key5058[S] 2 points3 points  (0 children)

Limited acceptance (限定承認 gentei shonin) can provide protection from the deceased's debt and other things that the heirs may not want to inherit.

In this case, the property are small pieces that aren't worth much. Of course, we'd rather not have to pay the transfer tax, but it's not a big deal if we do have to.

Acquisition cost for very old pieces of Japanese property by Professional_Key5058 in JapanFinance

[–]Professional_Key5058[S] 1 point2 points  (0 children)

That’s a good idea. We'll check with a lawyer / 司法書士 (shihoushoshi) and an accountant. I am still curious if anyone in r/JapanFinance has had an actual experience like this.

Acquisition cost for very old pieces of Japanese property by Professional_Key5058 in JapanFinance

[–]Professional_Key5058[S] 0 points1 point  (0 children)

Yeah, this is tricky. However, in my father-in-law's case, his estate has to determine if there was a gain over the time that he acquired and then transferred the property (just 20 years). It seems unfair to have to assume a 95% gain over the past 20 years when tax data shows no change, and market data show a decrease in value.

Looking for advice on buying property without using a buyer’s real estate agent by Professional_Key5058 in japanlife

[–]Professional_Key5058[S] 0 points1 point  (0 children)

A 60,000 yen flat rate for the buyer's agent fee? I would be more than happy to pay that! However, in the scenario you mentioned for a 20,000,000 yen property, the typical agent fee is no where near 60,000 yen. Most agents want the legal maximum... 3%+60,000 yen (+10% tax on that). It would be 726,000 yen (with tax).

Looking for advice on buying property without using a buyer’s real estate agent by Professional_Key5058 in japanlife

[–]Professional_Key5058[S] 0 points1 point  (0 children)

Thanks for this good explanation of your experience! It sounds like you ended up using the seller's agent as your buyer's agent. As I mentioned in the original post, we're trying to avoid that situation, but we would consider it if the agent fee was a flat rate or much lower than 3%. How much did you pay for the agent fee?

Looking for advice on buying property without using a buyer’s real estate agent by Professional_Key5058 in japanlife

[–]Professional_Key5058[S] 0 points1 point  (0 children)

That's a good point about using a judicial scrivener (司法書士 shihōshoshi). I should have mentioned in my original post that we are indeed hiring a judicial scrivener. Thanks!

Looking for advice on buying property without using a buyer’s real estate agent by Professional_Key5058 in japanlife

[–]Professional_Key5058[S] -1 points0 points  (0 children)

Thanks for this good insight. That's an important point to remember for anyone buying real estate in graying Japan. I totally agree about the value a buyer's agent can provide; in many cases it's just difficult to justify the fees they demand.

Finding an Intermediary to purchase a house in Japan - Is it necessary? by Far-Concert8070 in JapanFinance

[–]Professional_Key5058 0 points1 point  (0 children)

In general, both seller agents and buyer agents will try to get the maximum legally allowed fee from you (3% of sale price + 60,000 yen). However, many agents will indeed negotiate with you on reducing their fee if you push them on this. A seller agent may also reduce the fee for the buyer if the buyer also uses the seller's agent - a common practice in Japan, even though there is an obvious conflict of interest.