Once you pass tenant screening, the contract process moves forward as follows: you receive an explanation of important matters (jūyō jikō setsumei) from a licensed real estate transaction agent (takken-shi), sign and stamp the lease contract, and pay your initial move-in costs. The explanation of important matters covers the property and the terms of the transaction in writing, and the lease contract also sets out special provisions (tokuyaku jikō) such as whether pets are allowed and the scope of restoration to original condition. It can feel like a lot of paperwork with an unfamiliar process, but it isn't difficult if you work through it step by step.
- After passing screening, the contract proceeds through the explanation of important matters, then signing and stamping the lease, then paying your initial costs.
- The explanation of important matters is a system in which a licensed real estate transaction agent explains the property and the terms of the transaction in writing before you sign.
- In the lease contract, check basic items such as the contract term, whether it renews, the rent and common service fee, and the payment method.
- Checking the special provisions — property-specific rules like whether pets are allowed or the scope of restoration to original condition — is especially important.
- Ask questions on the spot about anything you don't understand, and if needed, confirm in advance whether an explanation in English is available.
The Steps from Passing Screening to Signing
Once you pass tenant screening, the paperwork toward a contract begins in earnest. First, you receive the explanation of important matters from a licensed real estate transaction agent, and once you're satisfied with the content, you sign and stamp the lease contract. After that, you pay your initial costs — the security deposit (shikikin), key money (reikin), and brokerage fee, among others — and confirm the date for receiving your keys, which completes the contract. The documents and amounts to check differ at each stage, so getting a sense of the overall flow beforehand lets you move through it calmly.
What Is the Explanation of Important Matters?
The explanation of important matters is a system in which a licensed real estate transaction agent — a nationally licensed specialist — explains the property's rights and the terms of the transaction in writing before you sign. It covers not just basic property information but also the contract term, cancellation conditions, and the condition of fixtures and equipment. It's positioned as an important opportunity to fully understand the details before moving forward with the contract, so as to avoid trouble after signing.
Basic Items to Check in the Lease Contract
Be sure to check basic items in the lease contract, such as the contract term, whether it renews, the amount of rent and the common service fee, and the payment method. What procedures are required when the contract term ends, and whether a renewal fee (kōshinryō) applies, are especially worth noting, since they affect your longer-term living plans. If anything in the contract is unclear, it's important to check it before you sign.
Why Checking the Special Provisions Matters So Much
The lease contract may include special provisions set individually for that property. These can include, for example, whether pets are allowed, agreements about the scope of restoration to original condition, and prohibited activities. Because special provisions vary widely from property to property, you need to read through them individually, separately from the standard contract terms. Overlooking them can affect your daily life after moving in, so check them carefully.
How to Avoid Leaving Anything Unclear
If there's anything you don't understand in the explanation of important matters or the lease contract, it's important to ask on the spot. These documents contain a lot of specialized terminology and customs unique to Japan, so it's best to avoid moving forward with the contract while questions remain. If you're not confident following the explanation in Japanese, checking with the real estate agency in advance about whether they can provide supplementary explanation in English lets you proceed with more peace of mind.
Frequently Asked Questions
Who provides the explanation of important matters?
A licensed real estate transaction agent explains it in writing before you sign. It's an explanation from a nationally licensed specialist.
Is the lease contract only in Japanese?
Some companies can provide supplementary explanations in English. It's reassuring to confirm whether this is available in advance.
What are special provisions?
They're individual arrangements set for each property. They can include items that affect the contract, such as whether pets are allowed or the scope of restoration to original condition, so be sure to check them.
Summary
A lease contract in Japan proceeds through receiving the explanation of important matters, signing and stamping the lease, and paying your initial costs. Alongside basic items like the contract term and rent, checking the special provisions — which differ from property to property — is especially important. Asking questions on the spot about anything unclear, and checking in advance whether an explanation in English is available if you need it, lets you move through the contract with peace of mind.