Do You Have to Buy If You Submit a Purchase Offer? From Offer to Sales Contract in Japan
Written by：SUMIMOTO Inc.Editorial Policy
When you find a property you like in Japan, the agent will usually ask you to submit a purchase offer (kaitsuke shomeisho) first. Many buyers worry: "If I sign this, am I obliged to buy?"
This article walks through what is generally fixed at each stage between the offer and the sales contract, and what to check at the offer stage. Individual deals depend on their documents, so confirm with the written terms and a qualified professional.
What is a purchase offer, and does it form a contract?
A purchase offer is a document that tells the seller, "I would like to buy on these terms." In practice it is generally not treated as concluding the sale; the contract is formed when the sales contract is signed and sealed later.
Still, depending on how the document is worded, there is some room for it to be read as settling the main terms such as price and handover date. It helps to confirm that it clearly states an expiry date, that terms may change, and that the offer depends on the outcome of loan screening.
Numbers to keep in mind
- Typical deposit
- 5–10%
- Deposit cap when the seller is a licensed agent
- 20%
- Offer to contract (rough guide)
- 1–2weeks
Share of the sale price; varies by property and seller
Under the Real Estate Brokerage Act; not applicable to private sales
Depends on loan pre-screening and explanation schedules
What is the usual flow from offer to contract?
The typical order is: (1) submit the offer, (2) negotiate price and handover timing, (3) loan pre-screening, (4) explanation of key points, (5) sign the sales contract and pay the deposit, (6) final loan approval, (7) settlement and handover.
For the buyer, step (5) is the big milestone. Cancelling for your own reasons after signing generally means forfeiting the deposit, so leave enough time to review the explanation and the contract before you sign.
Main stages from offer to handover
| Stage | What happens | What the buyer checks |
|---|---|---|
| Offer | Submit the offer, negotiate | Expiry date, room to change terms, whether a loan is used |
| Pre-screening | Bank's preliminary review | Amount, rate type, required documents |
| Key-points explanation | Licensed agent explains in writing | Legal restrictions, building rules, utilities, cancellation terms |
| Sales contract | Sign and pay deposit | Loan clause, handover date, cancellation terms |
| Final approval & settlement | Loan funded, balance paid | Payment route, closing costs |
Which conditions should you check at the offer stage?
Offers usually include the price, desired handover date, items left in the unit, whether a loan will be used, and an expiry date. These conditions become the basis for negotiation, so avoid leaving them blank; stating your wishes concretely reduces misunderstandings later.
Non-Japanese buyers and buyers living overseas may be asked for extra documents on residence status or income during loan pre-screening, which can extend the schedule. Tell the agent the expected screening time and reflect it in the offer's expiry date.
Legal basis
- Real Estate Brokerage Act, Art. 35
- Before a contract is concluded, the licensed agent must have a licensed real estate transaction specialist explain key points, with a written document.
- Same Act, Art. 37
- After the sales contract is concluded, the agent must promptly deliver a document stating the contract terms.
- Same Act, Art. 39
- When the seller is a licensed agent, the deposit may not exceed 20% of the price.
- Same Act, Art. 47
- Deliberately failing to disclose, or misstating, important matters is prohibited.
What commonly goes wrong, and how to avoid it?
Common slips and fixes
✕No expiry date on the offer, and the buyer was pressed to move ahead without checking the terms.
→State an expiry date and finish loan pre-screening and checks within it.
✕Rushed into the sales contract before the loan result.
→Wait for the result, or include a loan clause in the contract.
✕Received the key-points explanation on the contract day with no time to read.
→Ask for a copy in advance and read it several days earlier.
✕No foreign-language materials, and signed without understanding.
→Ask the agent about interpretation or translation and raise questions before signing.
Pre-contract checklist
- I confirmed the offer states an expiry date and room to change terms
- I confirmed the loan pre-screening result and borrowing limit
- I received a copy of the key-points document in advance and read it
- I checked the loan clause and its deadline in the draft contract
- I confirmed the deposit amount and the cancellation deadline
- I built a funding plan covering closing costs through handover
FAQ
- Q. Can I withdraw a purchase offer?
- A. Generally, an offer can be withdrawn before the sales contract is concluded. Depending on the wording and the negotiation history, you may need to discuss it, so contact the agent early.
- Q. If several people apply for the same property, who gets it?
- A. It is up to the seller, but the order of applications, price, and whether a loan is used are commonly considered.
- Q. Can I apply from overseas?
- A. Often yes, but loan eligibility, payment method, and identity verification need separate confirmation.
- Q. Do I get the deposit back?
- A. If you cancel for your own reasons after signing, you generally forfeit it. It may be returned under grounds written in the contract, such as a loan clause.
In the SUMIMOTO Hub app, AI valuation gives a price reference and the 24-hour AI advisor explains offer and contract terms in multiple languages. Please also confirm the final decision with a qualified professional.
Questions about buying in Japan?
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References & Sources
This article provides general information as of its publication date and is not individual legal, tax or investment advice. It was written with the help of generative AI.Editorial Policy
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