Property sales workflow
Step 1 Free consulting (click to confirm details)
We take the time to fully understand your goals and to explain selling procedures, necessary expenses, etc.
Checklist of items & explanations
- Free Assessment of Property
- Confirm desired selling period
- Estimate costs during sale
- Confirmation of if there are repairs necessary
- Legal professionals & accountants & architects and other experts are introduced when required customer.
We then proceed to the next steps after fully understanding the needs of the customer.
Step 2 Exclusive sales agreement (click to confirm details)
Step 3 Property Advertising Activities (Click to check details)
Step 4 Offer (click to confirm details)
Application from property buyer
・Content of negotiations at the time of sale
Price· Closing date · Presence / absence of mortgage special contract · Necessary repairs if any
Step 5 Contract (click to confirm details)
Step 6 Authorization from condominium management association (click to confirm details)
Application for permission to move in. It takes 2 to 4 weeks.
Step 7 Closing (Click to confirm details)
Closing attendance：
- Seller / buyer
- Seller / buyer’s lawyer
- Seller / buyer’s broker
- Lawyers from banks
- Title Company
Seller / buyer, if you can not come to the closing, prepare a power of attorney document to be notarized in advance (Notary Public).
In case there it is necessary to talk about payment for newly found repair spot at the final inspection, be sure to be available by telephone during the time of the closing.
What to bring / Seller：
- Identification card in English with pictures (must be the same name as the contract)
- Property Transfer Certificate (DEED)
- Checkbook
- Room key, mailbox key, other keys (parking lot and storage)
- LLC Book (when purchased by a corporation)
Congratulations and thank you for completing the transaction.
Duration required from establishment of contract to assignment of ownership: 3 to 6 weeks for cash buyer / 1 to 2 months when using a mortgage
We also coordinate Real Estate Lawyers, Accountants, Mortgage Brokers and Real Estate Appraisers.
* Escrow is an important institution that promotes fairness and the safety of transactions from a neutral standpoint between sellers and buyers enabling smooth transactions. Escrow plays the role of a judicial scrivener, trust bank, notary public, etc., while serving as a substitute legal procedures, payment and registration.
Closing cost for sales
Closing cost for Condominium Apartment (Estimate) |
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| Attorney Fee | ＄2,000～＄5,000 | |
| Broker Fee | Usually 6% of sales price | |
| Title Insurance | ＄1,500～2,000 | |
| Reconveyance | when using mortgage | |
| CC & RET Adjustment | Prorated on closing date. | |
| Renovation & Repair | If necessary | |
| Move out deposit refundable | $500-$1,000 | |
| Move out fee non refundable | $500-$1,000 | |
| New York State Tax | Move out fee non refundable | |
| FIRPTA (Foreign Investment in Real Property Tax Act) | Foreign transfer taxes that are mandatory only for non – immigrants in the United States. In the case of transfer loss, it is unnecessary if you declare it to the IRS in advance and obtain a Certificate of Exemption . Withholding tax of 10 to 15% * (as of February 16, 2016) of the selling price to the IRS (Internal Revenue Service) within 20 days after selling. The difference is adjusted by the final return of the following year. | |
| Transfer Tax (State) | 0.4% | |
| Transfer Tax (City) | Property price 1% below $ 500K, 1.425% above $ 500K | |
| Transfer Tax filing fee | $ 75.00 | |
※ Total Expenses: Approximately 8% of the property price
※ Foreign exchange gain: If the depreciation of your home currency is lower than at the time of purchase, foreign exchange gains will be realized.
For the attorney fee, if there are issues in the period leading to the contract, additional overtime fees may be applied.
| U.S.A. | US short-term Capital Gains taxation | 10% – 37% |
| US long term capital gains taxation | 0% or 15% or 20% depending on your taxable income and filing status. | |
| Japan | Short-term transferred income (less than 5 years) | 39.63% of transferred income |
| Long-term transferred income (over 5 years) | 20.135% of transferred income | |
| Foreign Tax Deduction (Double Tax Avoidance) | In the case of both the US and Japan surplus, income tax paid in the US can be deducted from income tax in Japan. |
※ For tax, please consult with an expert.
Foreign exchange gain: If the depreciation of the currency you use is lower than at the time of purchase, foreign exchange gains are incurred
For lawyer’s use, if there is something wrong in the period until the contract is signed, if additional time is required, an additional fee may be charged.
Savings effect
① When using your property as your home
If the property is used for home use for 2 years out of a long-term possession period (over 5 years)
Capital gains will be exempted for up to $ 250,000 per person and up to $ 500,000 in a couple’s name.
Even if someone dies, you can receive a deduction of up to $ 500,000 within two years of death.
Tax will be incurred for the excess amount if there is a profit from selling the home of over 250K US (500K US for couples).
It can be used any number of times throughout the lifetime. (There must be more than 2 years of absence)
② 1031 Tax Deferred Exchanges
A preferential tax program that can defer the tax on the gain on transfer when the gain on sale of investment property is used for purchasing further investment property. Available many times throughout the lifetime.
For a free consultation, please do not hesitate to contact us.
