What is "Final Settlement/Delivery" (決済 - kessai)? Where does this process take place? Who needs to be present simultaneously?

Okay, no problem. Let me break down "決済" (kessai) for buying property in Japan for you, keeping it as simple and clear as possible.

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What is "Final Settlement/Closing" (決済 - Kessai)?

Think of it as the "grand finale" of the long home-buying process, or that exact moment at the final checkout counter where money changes hands, and property changes owners (deeds and keys are exchanged).

Simply put, "kessai" is when the buyer, seller, and all relevant parties gather to complete two core tasks:

1. Settlement of Funds: The buyer pays the remaining balance of the purchase price, all taxes, fees, agent commissions, and other associated costs.
2. Transfer of Ownership: The seller hands over the property's title deed (権利証 - kenri-shō) and other necessary documents. A professional "Judicial Scrivener" (司法書士 - Shiho-shoshi) verifies everything on the spot. They then immediately proceed to the Legal Affairs Bureau to register the transfer of ownership, officially putting the property in your name.

Once this process is complete, the property legally belongs to you.

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Where Does This Process Take Place?

In the vast majority of cases, this happens at the bank where the buyer obtained their loan.

Why the Bank?

It's simple: because the largest sum of money – your mortgage loan – comes from there. In the bank's meeting room, the loan disbursement and transfer to the seller can be confirmed immediately, ensuring clear and secure fund flow. The bank also wants to witness firsthand that the loan is indeed being used to purchase the specified property.

If the buyer is purchasing with cash (no loan), the location might be more flexible, such as at the real estate agency's office or the Judicial Scrivener's office. However, even then, conducting it at a bank for the convenience of large fund transfers remains the mainstream choice.

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Who Needs to Be Present?

On the day of "kessai," a "full lineup" of key players will be present to ensure everything goes smoothly. This typically includes:

• Buyer (You)

  • Role: The protagonist, there to pay and receive the property.
  • What to Do: Confirm the final payment amounts, sign and seal various documents, execute fund transfers.

• Seller

  • Role: The other protagonist, there to receive payment and hand over the property.
  • What to Do: Confirm receipt of funds, hand over the property's title deed, keys, manuals, etc.

• Judicial Scrivener (司法書士 - Shiho-shoshi)

  • Role: The most crucial "referee and notary" in the room. Hired by the buyer (usually recommended by the agent), they are legal experts.
  • What to Do:
    • Verify the identities of both buyer and seller.
    • Review all documents required for the transfer to ensure they are complete, authentic, and valid.
    • Calculate taxes and fees due (e.g., registration license tax).
    • Once funds are confirmed received, they immediately take all documents to the Legal Affairs Bureau to register the ownership transfer. Their presence is the fundamental guarantee of a legal and secure transaction.

• Real Estate Agent (for both buyer and seller)

  • Role: The coordinator and guide for the entire transaction.
  • What to Do: Facilitate the process, assist both parties in confirming documents, calculate the agent commission due, and ensure everything proceeds smoothly.

• Bank Loan Officer (If you have a loan)

  • Role: The provider of the funds.
  • What to Do: Confirm all procedures are correct, then execute the loan disbursement. The loan amount is deposited into your account, which is then transferred to the seller.

Simple Summary of Attendees:

While it might sound like a lot of people and steps, the process, led by the Judicial Scrivener and the agent, usually runs very smoothly. You just need to bring your documents and personal seal (印鑑 - inkan), and follow the instructions step by step.

Congratulations! Once this step is complete, the house is truly yours!