How to Investigate Property for Encumbrances Such as Mortgages and Seizures?

Okay, no problem. When buying property in Japan, thoroughly investigating its "background" is indeed the top priority. Let me break it down for you, ensuring it's clear even for a complete beginner.

How to Investigate Property for Defects like Mortgages or Seizures?

Hey there. When buying property in Japan, the biggest fear is finding a place that looks great on the surface but is actually burdened with debt – like being mortgaged to a bank by the previous owner, or worse, seized by the court. Discovering this after you've paid would be a huge headache.

Don't worry. Property information in Japan is very transparent, with a standard process to check this. The core tool is the property's "ID card".

Core Tool: The Real Estate "Certificate of Registered Matters" (Tōki Jikō Shōmeisho)

In Japan, the "official register" for all properties is managed by a government agency called the Legal Affairs Bureau (Hōmukyoku). To find out everything about a property, you apply to the Legal Affairs Bureau for a document called the "Certificate of Registered Matters" (Tōki Jikō Shōmeisho).

Think of it as a combination of the property's ID card + medical report. This document clearly states the property's history, who owns it, and who it owes money to.

The document is mainly divided into three sections; you need to focus on the last two:

1. Heading Section (Hyōdaibu) - Basic Property Information

This is the property's "ID card" section.
It states where the land or building is located (address/lot number), its size (land area / floor area), structure (wooden or reinforced concrete), etc.
This section is mainly for verifying information and usually doesn't contain major pitfalls.

2. Rights Section (A) (Kenribu Kōku) - Who Owns the Property

This is the "Ownership Registry".
It records information related to ownership rights. For example:
- Who the current owner is (Owner).
- How the owner acquired the property (e.g., purchase, inheritance).
- 【Critical】 If you see the terms 「Seizure」 (Sashiosae) or 「Provisional Seizure」 (Kari Sashiosae) here, that's a huge red flag! This means the property has been seized or provisionally seized by the court. Such a property must absolutely not be touched until the issue is resolved.

3. Rights Section (B) (Kenribu Otsuku) - Does the Property Have Debts?

This is the "List of Debts and Encumbrances" – the part you absolutely MUST pay attention to!
This section records rights other than ownership, primarily various debts and security interests.
The most common is a 「Mortgage」 (Teitōken), which is the standard home loan/mortgage. If the previous owner had a loan, the bank would register a mortgage here.
How to read it?
- If Section B lists a "Mortgage", it will be followed by the creditor (e.g., XYZ Bank), the loan amount (Claim Amount), etc.
- If Section B is blank, congratulations! This means the property has no mortgages or liens; it's clean and ideal.

How to Obtain this "Certificate of Registered Matters"?

There are two ways: one is easy, the other is DIY.

Method 1: Let Professionals Handle It (How 99% of people do it)

During your property purchase, two key professionals are involved:

Real Estate Agent (Fudōsan Gaisha): Before you decide to buy and enter the contract phase, the agent is legally obligated to show you this "Certificate of Registered Matters" and explain it in detail. This is required by law. They must provide the most recent version.
Judicial Scrivener (Shihō Shoshi): When handling the final transfer procedures, the judicial scrivener is the legal expert who acts on your behalf. One of their core tasks is to go to the Legal Affairs Bureau on the very day of the final payment and property transfer to reconfirm this document. This ensures that, at the last possible moment, the property hasn't been secretly mortgaged or seized. Only after confirming everything is clear will they help transfer the money to the seller and register your name in "Section A" as the new owner.

So, the simplest method is: Trust your agent and judicial scrivener, and ask them to show you this document and explain it clearly.

Method 2: Check Yourself (If you want to know early or feel uneasy)

If you want to check during the viewing stage, that's perfectly fine. The procedure is simple:

Where to go: Go to the counter at any Legal Affairs Bureau.
What you need: Just the property's precise address (residential address notation) or lot number (chiban). You can get this from the agent.
Cost: Around 600 yen per copy (just a handling fee).
Online option: You can also apply online, which is slightly cheaper (around 400-500 yen).

To summarize, your golden rules:

Core Document: Keep a close eye on the "Certificate of Registered Matters".
Key Focus Areas:
- Section A: Check for 「Seizure」 (Sashiosae).
- Section B: Check for 「Mortgage」 (Teitōken).
Trust the Professionals: Your agent and judicial scrivener are your safeguards. It's okay if you don't understand everything, but you absolutely must obtain this document and have them point out and explain each item clearly. Especially for Section B, make sure you hear them say, "We will ensure all mortgages are discharged at the time of transfer."
Check the Date: This document must be the most recent version. A certificate from six months ago is meaningless, as many things could have happened in that time. The judicial scrivener verifies it on the transfer day specifically to prevent this risk.

Understanding the above will help you avoid 99% of the pitfalls related to property rights when buying in Japan. Good luck!