Flow of real estate sales

Flow of real estate sales

The flow of buying and selling real estate is as follows.

Flow when selling real estate

In legal terms, mediation is called mediation. If you want to sell real estate, make an intermediary contract with the real estate company and ask the real estate company to find a sale destination. Once the seller is found, the person who wants to sell the real estate and the person who wants to buy it conclude a sales contract.

The buyer pays the seller for the property and the seller delivers the property to the buyer. The timing of payment of the brokerage fee to the real estate company depends on the contract details, but in general, it is paid from the price received from the buyer. In addition, since real estate has a registration system, there is also the work of erasing the rights that should be extinguished, such as mortgage cancellation registration, before handing it over to the buyer. The judicial scrivener will perform the specific work of registering and deleting the registration.

Flow when buying real estate

Once you have decided on the property you want at a real estate company, you will first receive an explanation of important matters such as the property you purchased and the transaction conditions. After both parties are satisfied, we will conclude a sales contract between the seller and the buyer.

When concluding a sales contract, the buyer pays the seller a deposit (a part of the purchase price). The flow is to pay the remaining amount, receive the delivery of the property, and register the transfer of ownership.

By the way, if you are a buyer, you need to prepare the following 5 types of documents.

  • Seal

Penetration marks cannot be used. A real seal is required to make a loan.

  • Deposit

A part of the purchase price of real estate is included as a deposit.

  • Revenue stamp fee

Paste it in the contract.

  • Half price of brokerage fee

At the time of the sales contract, half of the brokerage fee will be paid.

  • Identity verification documents

It is necessary to prove that the person making the contract is the person who makes the contract.

 

What is the brokerage fee for buying and selling real estate?

The brokerage fees for buying and selling real estate are as follows. Please note that brokerage fees are taxable.

What is a brokerage fee?

Real estate companies work hard to find people who want to buy a property. The brokerage fee is the reward for finding the buyer. Since it is a success fee, you do not have to pay until the buyer is found and a sales contract is signed.

There are legal restrictions on brokerage fees

The brokerage fee is not freely set. The upper limit is regulated.

If the selling price is 2 million yen or less, within 5% of the transaction amount 2 million yen to 4 million yen or less is within 4% of the transaction amount the portion exceeding 4 million yen is within 3% of the transaction amount

In addition, consumption tax will be added to the actual amount paid. If the selling price exceeds 4 million yen, it will be 3% of the selling price + 60,000 yen + consumption tax.

What is the deposit generated by buying and selling real estate?

It has the meaning of proof of contract, compensation in case of cancellation, and expected penalty in case of default.

The seller can cancel the contract by paying double the deposit to the buyer, and the buyer can cancel the contract by waiving the deposit until the deposit cancellation date.

Why you need a deposit

Real estate is expensive, so a deposit system is required to buy and sell safely. Also, since the period from the sales contract to the payment is long, we are worried about whether the contract will be fulfilled safely. Therefore, a system called deposit is used.

What is the market price of deposits?

The amount of the deposit is not fixed by law. However, the market price is within 5 to 20% of the trading value.

Summary

This time, I explained the flow and costs of buying and selling real estate.

  • Because real estate is an expensive asset, we often use brokerage contracts to buy and sell.
  • Unlike general goods, real estate has a registration system.
  • When buying or selling real estate, it is necessary to collect related documents.
  • There is an upper limit on brokerage fees.
  • There are no restrictions on deposits, but the market price is within 5 to 20% of the trading value.

If you have any doubts, ask the real estate company to resolve the questions before concluding the sales contract.

 

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