What Happens on Closing Day in Japan (Kessai and Hikiwatashi): The Steps, What to Bring and What You Pay

The short answer: paying the balance, registering the transfer and getting the keys all happen within about an hour on the same day

When you buy a home in Japan, you usually pay only the deposit (tetsukekin) when you sign the sales contract. The rest of the price is paid on closing day, called kessai. According to Tokyu Livable, paying the balance, handing over the property and filing the ownership transfer registration normally take place on the same day and are together called "kessai"; the gap between signing and closing is generally one to two months ^[1]. The day itself takes about 1 to 1.5 hours, and on days when bank transfers pile up, such as month-end, Fridays or "taian" (a lucky day in the traditional calendar), it can take around 2 hours ^[1].

A lot happens on this day, but the order is largely fixed. Below we cover where it takes place and who attends, the flow of the day, what to bring, what you pay, and points for buyers who live overseas.

Where it happens and who attends

If you use a mortgage, closing usually takes place in a meeting room at the buyer's lending bank; for cash purchases it may be held at the brokerage or the judicial scrivener's (shiho shoshi) office ^[1]. The people present are the seller, the buyer, the broker's agent and the judicial scrivener ^[1].

Closing is normally scheduled for a weekday morning so that the payment can be confirmed and the registration filed on the same day ^[1]. In recent years there are also remote closings, where not everyone gathers and the deal is completed through documents exchanged in advance and confirmation of the transfer on the day ^[1].

The flow of the day

Following the order set out by Tokyu Livable, the day typically runs like this ^[1]:

1. Once everyone is present, the judicial scrivener checks the identity of the seller and buyer and the documents needed for registration.
2. The buyer's mortgage is disbursed, the balance is transferred to the seller's account, and the seller confirms receipt.
3. The pro-rated settlement amounts for fixed asset tax, city planning tax and condominium management fees change hands.
4. The seller uses the money received to repay their own mortgage in full and completes the paperwork to cancel the mortgage lien.
5. The buyer pays the brokerage fee, the judicial scrivener's fee and other costs.
6. The seller hands over the keys and related documents, both sides sign a handover confirmation, and the judicial scrivener files the registration at the Legal Affairs Bureau that same day.

Nomura Real Estate Solutions' buyer guide adds that on the day you first check the property against the "property condition report" and "equipment list" from the contract to confirm nothing has changed ^[2]. At handover you receive the keys and a "property handover confirmation" from the seller, along with documents such as the building's management rules and brochures ^[2].

On registration, the judicial scrivener files three things together on the same day: cancellation of the seller's mortgage lien, the buyer's ownership transfer, and the lien for the buyer's new loan ^[1]. Mitsubishi Estate Housenet's seller guide likewise says that after the balance is received the keys are handed over and the judicial scrivener handles the ownership transfer registration ^[3].

What to bring

The main items Nomura Real Estate Solutions lists for buyers are ^[2]:

• Your seal (inkan). With a mortgage you also need your registered seal (jitsuin) and a seal registration certificate issued within the past 3 months ^[2].
• A residence certificate (juminhyo), and a "residential building certificate" if you are claiming the registration tax reduction.
• Photo ID such as a driver's licence or passport.
• With a mortgage, the passbook and bank seal for your account at the lending bank.

On the seller's side, the items include a seal registration certificate, the title document (registration certificate or registration identification information), the keys, materials such as the management rules, and the passbook for the receiving account ^[3]. If the seller still has a mortgage, the documents for cancelling the lien usually have to be requested from the lender 1 to 2 weeks ahead, and some lenders need about a month ^[1].

What you pay on the day

The main payments the buyer makes on the day are ^[2]:

• The remaining purchase price (the price minus the deposit already paid).
• Pro-rated settlement of fixed asset tax and management fees, calculated from the handover date.
• Registration costs (ownership transfer, mortgage lien and so on).
• The remainder of the brokerage fee.
• Loan-related fees, plus fire and earthquake insurance premiums.

Two points are worth knowing about the fixed asset tax settlement. First, the tax is owed by whoever owns the property on 1 January each year, so when you buy mid-year the seller and buyer split it at the handover date ^[5]. Second, there is no legal rule on the start date for the split; the parties agree on it, and 1 January is common in the Kanto region while 1 April is common in Kansai ^[5]. In the article's example, with a tax bill of 300,000 yen, handover on 3 August and a 1 April start date, the seller bears 124 days (about 102,000 yen) and the buyer 241 days (about 198,000 yen) ^[5].

If you use a mortgage, also watch the interest rate. Resona Bank states that the rate applied is the one in effect on the borrowing date ^[4]. In other words, the rate you saw at approval is not necessarily your final rate; it is fixed on closing day. Resona Bank also notes that the mortgage lien agreement must be signed separately in the presence of a judicial scrivener or similar professional ^[4].

What this means for buyers

Get the breakdown in advance. Because there are many items to pay on the day, confirm the amounts with your broker a few days before closing, including the start date and method for the settlement amounts ^[5].

Plan early if you live overseas. Closing requires identity checks and registration documents, and even a remote closing depends on documents exchanged beforehand ^[1]. From abroad, notarising signatures, mailing documents and sending funds all take time, so it is best to agree on the schedule with the broker and judicial scrivener when you sign the contract.

You also submit "search information" at registration. According to the Ministry of Justice, since 21 April 2025 an individual applying for an ownership transfer registration must also submit search information: name, the reading of the name (the name in Roman letters for foreign nationals), address, date of birth and email address, with nationality added for submissions from 5 October 2026 ^[6]. This prepares for the obligation that, from 1 April 2026, owners must register a change of name or address within 2 years ^[6]. Note that people living overseas are not covered by the registrar's automatic updates even if they submit this information, so if your address changes you must file the change registration yourself within 2 years ^[6].

Summary

On closing day, the balance, the settlement amounts, the registration and the keys are all handled in the same morning, usually taking about 1 to 1.5 hours ^[1]. As a buyer, your job is to confirm the breakdown of amounts in advance, prepare documents such as the seal registration certificate, and keep in mind that your mortgage rate is set on the borrowing date ^[4]. Buyers overseas should also allow time for documents to travel back and forth, and remember that they must file any address change registration themselves ^[6]. If you are considering buying a home in Osaka, please contact us. We can walk you through the closing day steps and cost list in advance, in Chinese, Japanese or English, and help coordinate the schedule with the judicial scrivener and the bank.