Real estate purchase procedure is as follows
Visit properties introduced by real estate companies.
Offer to purchase properties through offers through real estate companies (intention to purchase).
Acceptance from seller of the purchase price offer.
The buyer requests that the real estate appraiser (Surveyor) carries out appraisal investigation of the property to find any potential problems with the property.
The buyer hires a lawyer to liaise with the seller’s lawyer about the sale.
Confirmation and consensus between lawyers and provisional agreement (Exchange of Contract). At that time, the buyer pays 10% of the price to the lawyer.
Both legally binding powers occur after the exchange of Contracts has been completed. There is a 10% penalty for cancellation.
Payment of the balance (90%) on the day of sales contract (day of completion).
The costs involved in purchasing
Price of the property
Surveyor fee: Please note that the fee will vary according to the size of the property.
Legal fees: Depending on the size of the property, the fee also varies depending on the lawyer’s work, so please contact us.
Tax free up to purchase price of £125,000.
£125,000 to £250,000, stamp duty of 1% .
£250,000 to £5,000,000 – 3%.
£500,000 to £1,000,000 – 4%.
Over £ 1,000,000 – 5% of purchase price
(rates as of June 2011. Please check the most recent rates as they fluctuate).
Real estate company fee: The local real estate company usually charges a fee to the seller but not to the buyer. Since we will be working as Retained agent (buyer’s agent) we will charge a fee to the buyer. Please contact us for details of the fee.
Cost after purchase
In general, residents’ taxes, gas, electricity, water bills, telephone bills, TV licence fees, etc. will be incurred. However, if you purchase as an investment property with the intention of letting, these will be paid by the tenant.
In the case of flats within a managed block, Service charge (management fee) and Ground rent (rental) will also be charged. These are usually paid by the landlord.
The system of letting fees differs between Japan and the UK.
If you have any queries regarding these property management fees, please do not hesitate to contact us.