Once the sale contract is signed, it's easy to assume all that's left is waiting for handover — but sellers actually have several things to take care of before then, from preparing to pay off the mortgage to moving out.
- If a mortgage is still outstanding, coordinate the payoff and mortgage removal with your lender.
- Unless you've arranged a handover grace period, you'll need to finish moving out by closing day.
- Before handover, review the fixtures list (setsubi-hyō) and the property condition disclosure statement (kokuchisho).
- Fixed asset tax and city planning tax are typically prorated based on the handover date.
- Confirm what to bring and how the process will run on closing day, in advance, with your judicial scrivener and agent.
The overall flow from contract to handover
The period between signing the sale contract and handover is typically around one to two months. During this time, sellers need to work through several tasks in parallel — settling the mortgage, moving out, and confirming the necessary documents. This period also runs alongside things like the lump-sum mortgage payoff procedure and preparing your next home. The specifics of closing and handover day itself are a separate topic worth understanding in detail.
Preparing for the payoff and removal of the mortgage, if a loan remains
If a mortgage is still outstanding, the standard flow is to pay it off in full with the sale proceeds on closing day, while at the same time filing to remove the mortgage (teitōken masshō) from the registry. You'll need to let your lender know your intention to sell and your expected closing date in advance, and confirm the documents and process required to pay it off. We cover the lump-sum payoff and mortgage removal procedure in detail in Mortgage Payoff at Closing and Removing the Mortgage (Teitōken Masshō).
Scheduling your move and vacating the property
Unless you've arranged a handover grace period, you'll need to move your belongings out and be ready to hand over the keys by closing day. It's worth working backward from closing day to schedule your moving company and to cancel or settle utilities such as electricity, gas, and water. If your closing date falls during a moving company's busy season (such as around March), it's a good idea to book your mover early.
Reviewing the fixtures list and property condition disclosure statement
Before handover, review the fixtures list (setsubi-hyō), which records which fixtures — such as an air conditioner or water heater — will remain in the property, along with the property condition disclosure statement (kokuchisho), which records things like any history of leaks or termite damage. Checking again before handover that nothing has changed since what was recorded at signing helps prevent disputes after handover. The concept of liability for non-conformity is a separate topic worth understanding on its own. If a fixture has since broken, it's worth deciding at the contract stage whether to repair it before handover or hand it over as-is with an adjustment to the price.
Preparing to prorate fixed asset tax and city planning tax
Fixed asset tax and city planning tax are legally owed for the full year by whoever owns the property as of January 1, but in practice it's standard for the seller and buyer to prorate the amount based on the handover date. The starting date and amount for the proration are agreed at contract signing, but it's reassuring to confirm the figures again just before handover. For a condo, management fees and the repair reserve fund are typically prorated in the same way.
Final preparations for closing day
On closing day, a judicial scrivener confirms your identity, the remaining balance is received, the mortgage removal and ownership transfer are registered, and the keys are handed over — all within a short window. Confirming in advance with your judicial scrivener and agent what to bring and the order of procedures will help closing day go smoothly. After handover, it can take a few weeks for the documents confirming completed registration to arrive from the judicial scrivener, so it's worth confirming how you'll receive them.
Frequently asked questions
How much time is there between contract and handover?
One to two months is the general guideline from contract to handover, though it can shift depending on your mortgage situation and moving plans.
If I still have a mortgage, do I need to pay it off beforehand?
Not usually — the loan is typically paid off in full with the sale proceeds on closing day, with the mortgage removed from the registry at the same time. You will need to coordinate with your lender in advance.
How is fixed asset tax prorated?
It's standard practice for the seller and buyer to prorate it based on the handover date. Confirm the starting date and amount at contract signing.
Summary
Between the sale contract and handover, sellers have several things to take care of — preparing to pay off and remove the mortgage, moving out, confirming documents, and settling taxes. Sharing the schedule with your judicial scrivener and agent ahead of time helps you avoid a last-minute scramble on closing day.