How to Safely Transfer Funds Involved in Home Purchasing (e.g., Deposit, Final Payment) Across Borders to Japan?

Okay, no problem. Transferring money to buy a property in Japan is indeed the part of the whole process that feels the most uncertain. Don't worry, while it sounds complicated, as long as you do your homework in advance and take it step by step, it's actually a very mature and standardized procedure. I'll outline what I know and my experience for you, hoping it helps.

How to Safely Transfer Money to Buy Property in Japan?

When buying property in Japan, the funds are mainly divided into two parts: the deposit (手付金 - tesukekin) and the balance payment (残代金 - zandaikin). The methods and precautions for transferring these two sums are slightly different, but the core principles are the same: safety, compliance, and traceability.

1. Preparation Before Transferring: Sharpening the Axe Won't Delay the Woodcutting

Before initiating any transfers, make absolutely sure you understand the following points; this can prevent 90% of potential hassles:

Communicate Thoroughly with Your Japanese Real Estate Agent/Judicial Scrivener
- This is the single most important step! Your real estate agent (不動産会社 - fudousan gaisha) and the judicial scrivener (司法書士 - shihoushoshi) handling the title transfer will provide you with a detailed "funding schedule."
- They will clearly tell you:
  - Which account the deposit should be sent to (usually the real estate company's account).
  - Which account the balance payment and various fees (like taxes, agent fees, judicial scrivener fees, etc.) should be sent to (usually the judicial scrivener's designated account).
- Never assume and send money directly to the seller! All funds must go through the designated, regulated accounts. This is to protect the financial security of both buyer and seller.
Prepare Proof of Funds ("Source of Funds")
- With global Anti-Money Laundering (AML) regulations, banks everywhere will ask: "Where did this money come from? What is it for?"
- You need to prepare supporting documents in advance, such as:
  - Bank deposit certificates or large transaction statements from your home country bank: Proving the money is yours.
  - Proof of income: Proving it's your legal salary income.
  - Contract for selling property in your home country: If the funds come from a property sale.
  - The Japanese property purchase contract (売買契約書 - baibai keiyakusho): This is the strongest proof of purpose.
- Having these documents ready will make the bank review process much smoother.
Understand Your Home Country's Foreign Exchange Control Policies (If Transferring from Mainland China)
- Currently, individuals in Mainland China have an annual USD 50,000 foreign exchange purchase and transfer quota.
- If your property payment exceeds this amount, the most common method is to ask family members or relatives to help, using their quotas to send the money in batches. Colloquially known as "using family members' quotas."
- Important: When doing this, ensure the purpose description for each transfer is consistent (e.g., all marked "Payment for property purchase"). It's also best to send from different banks and at different times to avoid the bank flagging it as "structured transactions" and rejecting them.

2. Comparison of Common Transfer Methods

The choice depends mainly on your transfer amount, time requirements, and sensitivity to fees.

Method	Advantages	Disadvantages	Best For
Traditional Bank Wire Transfer (T/T)	1. The safest and most mainstream method, backed by bank credibility.<br>2. Large single transfer amounts possible, suitable for balance payments.<br>3. Clear process, paper trail, easy to trace.	1. High fees (sending fee + intermediary bank fee + receiving fee).<br>2. Exchange rate spread can be significant.<br>3. Process is relatively cumbersome, requires filling forms at the bank.<br>4. Transfer speed is average (usually 2-5 business days).	Paying large balance payments – safety first.
Third-Party Payment Platforms (e.g., Wise, etc.)	1. Low fees, better exchange rates, transparent.<br>2. Convenient operation, entirely online.<br>3. Fast transfer speed, sometimes same-day arrival.	1. Per-transfer or daily limits may not be suitable for large, one-time balance payments.<br>2. Need to confirm if the Japanese receiving bank accepts transfers from such platforms.	Paying the deposit or sending smaller amounts in batches is very suitable.

My Recommendation:

Deposit (手付金 - tesukekin): The amount is usually small (5%-10% of the property price). If your agent accepts it, consider using a platform like Wise – saves money and is fast.
Balance Payment (残代金 - zandaikin): The amount is huge; safety is paramount. Stick with a bank wire transfer. It might be more expensive and slower, but it gives peace of mind.

3. The "Safety Lock" for Funds: The Role of the Judicial Scrivener

You might wonder: Is it safe to send hundreds of thousands or millions to an unfamiliar "judicial scrivener"?

Very safe! This is precisely the brilliance of Japan's property transaction system design.

The Judicial Scrivener (司法書士 - shihoushoshi) is a state-certified legal professional who acts as a strictly neutral third party in the transaction, similar to a notary public in some countries or an Escrow agent in common law systems.

The entire balance payment and transfer process works like this:

You (Buyer): On the day of the title transfer (or a few days before), transfer the balance payment + all fees to the judicial scrivener's designated bank account.
Judicial Scrivener: After confirming all funds have arrived, they will convene a meeting with you (or your representative), the seller, and the real estate agent to verify all documents in person.
After documents are confirmed: The judicial scrivener immediately goes to the Legal Affairs Bureau (法務局 - homukyoku) to submit the application for ownership registration change (i.e., processing the title deed).
After the Legal Affairs Bureau accepts the application: The judicial scrivener then releases the funds held in their account to the seller and pays other fees to the agent, etc.
Transaction Complete: You get the keys, the seller gets the money, everyone is happy.

See? The judicial scrivener acts as a "safety deposit box." They only release the money to the seller once they confirm the property is about to become yours. This minimizes the risk of you "paying the money but not getting the property."

4. Essential "Pitfall Avoidance" Guide

Double and Triple-Check Recipient Account Details: Bank name, branch name, account type (普通 - futsu / 当座 - touza), account number, account holder name (especially in Katakana!) – not a single letter or digit can be wrong. Best to have the agent send you the information directly to copy-paste.
Allow Plenty of Time for the Transfer: International transfers can be delayed due to holidays, bank reviews, etc. Never wait until the last day to transfer; start the process at least 3-5 business days in advance.
Fill in the Transfer Reference (Remarks) Clearly: Always write the reference exactly as instructed by the agent or judicial scrivener. It's usually "Property Address + Your Name in Romaji," e.g., 東京都新宿区XX XX-XX-X GOU SHIBOTAROU. This helps the recipient quickly identify whose money it is.
Account for Exchange Rate Fluctuations and Fees: To avoid the received amount in Japan being insufficient due to exchange rate drops or fees deducted, consider sending a little extra (e.g., 10,000 - 20,000 JPY more) than the calculated amount. The judicial scrivener will refund any surplus.
Keep All Records: Bank transfer receipts, screenshots of online transfers, emails with the agent – save everything securely for potential future reference.

In conclusion, transferring money across borders to buy property in Japan is a serious matter, but the process is highly standardized. The key is to find a reliable Japanese real estate agent and then follow their instructions and those of the judicial scrivener meticulously. Be careful with the details, and you'll be fine.

Wishing you a smooth move and settling in Japan!