A pass rate of 17.6 percent in the 2024 national examination, with 40,025 successful candidates from 227,384 who sat the test, tells you something immediate about the 宅建士 (takken-shi, Japan’s licensed real estate transaction specialist): this is not a routine credential. It is the single statutory licence without which no property transaction in Japan can legally close, and for foreign buyers navigating a ¥300 million or ¥500 million purchase in Minato-ku (港区) or Shibuya-ku (渋谷区), understanding exactly what this person does, and what they do not do, is the difference between a clean acquisition and a costly surprise.

What the Takken-Shi Licence Actually Authorises

The takken-shi licence is created under the 宅地建物取引業法 (Takuchi Tatemono Torihiki Gyō-hō, the Real Estate Transaction Business Act, Law No. 176 of 1952, most recently amended in 2023). Three acts are legally reserved to licence-holders alone, and no transaction can proceed without them.

The first is the 重要事項説明 (juuyou-jikou-setsumei, the statutory pre-contract disclosure meeting), conducted under Article 35. The takken-shi must personally explain all material facts about the property before any contract is signed. The second and third are the formal signing and sealing of the Article 35 disclosure document and the Article 37 transaction deed, the final contract instrument. No other professional in the transaction chain, not the salesperson who showed you the apartment, not the branch manager who negotiated the price, is legally permitted to perform these acts.

For a foreign buyer, this architecture has a practical consequence that is easy to miss. In many Tokyo agencies, the person who handles your initial inquiry, arranges viewings, and discusses price is an unlicensed salesperson. The takken-shi appears only at the closing table to execute the mandatory steps. The continuity of professional judgment across the full transaction is not guaranteed by law; it depends entirely on how the agency is structured.

The disclosure checklist under Article 35 covers items of direct relevance to foreign buyers: the 登記 (touki, the transfer of legal title recorded at the Legal Affairs Bureau) history and any undisclosed liens, the urban planning zone and 建蔽率・容積率 (building coverage ratio and floor area ratio), asbestos survey records where they exist, earthquake resistance standards (critical for any building constructed before the 新耐震基準, the 1981 revised seismic code), and for マンション (manshon, Japanese usage meaning freehold condominium, not the English sense of mansion) purchases, the full management rules, monthly 管理費 (management fees), and the 修繕積立金 (repair reserve fund) balance. For a 区分所有 (strata-title) property in Azabu (麻布) or Hiroo (広尾), the repair reserve balance alone can represent a six-figure liability if the building is approaching a major renovation cycle.

The 2026 Regulatory Landscape: What Has Changed

Two reforms are now fully operational and materially affect how foreign buyers experience the takken-shi’s mandatory disclosure.

The IT重説 (IT-jūsetsu, remote video disclosure) pilot, which began for rental transactions in 2017 and was extended to sales in 2021, was made permanent under amendments to the Enforcement Rules of the Real Estate Transaction Business Act, effective March 2022, with full operational normalisation confirmed through 2025 and 2026 guidance from the 国土交通省 (MLIT, Ministry of Land, Infrastructure, Transport and Tourism). As of April 2026, a takken-shi may conduct the Article 35 disclosure entirely via video call, provided the buyer has received the documents in advance and has consented to the remote format. For a buyer based in Singapore, London, or New York who is acquiring a Shirokane (白金) residence, this means the mandatory pre-contract disclosure session can be completed without a flight to Tokyo.

The second reform concerns paperless contracts. Under the Digital Society Formation Act (Law No. 37 of 2021, effective May 2022), the Article 35 and Article 37 documents may now be delivered electronically, by email or secure portal, with buyer consent. The traditional 記名押印 (name and seal) requirement has been replaced by 電子署名 (electronic signature). MLIT confirmed full industry adoption guidance in its Real Estate Transaction DX Promotion Guideline published in March 2024. Major Tokyo brokerages, including 三井不動産リアルティ, 東急リバブル, and 野村不動産ソリューションズ, had operationalised fully paperless closings by 2025. For a buyer signing from overseas, this removes the last logistical obstacle to completing a legally valid Tokyo acquisition without being physically present at a notary table.

A third development is still in progress. The 令和8年度税制改正大綱 (FY2026 Tax Reform Outline), announced on 19 December 2025 by the LDP Tax Commission, introduces a 5-year rule for rental property inheritance valuation, effective 1 January 2027. Properties acquired for rental purposes within five years of the owner’s death will be valued at approximately 80 percent of acquisition price for 相続税 (inheritance tax) assessment purposes, rather than the lower 路線価 (road-frontage assessed value) that made Tokyo income property attractive for estate planning. Industry bodies including 全国宅地建物取引業協会連合会 (全宅連, the National Federation of Real Estate Transaction Associations) are expected to update the standard 重要事項説明書 form to require disclosure of acquisition date and inheritance tax valuation impact. As of April 2026, the updated standard form has not yet been officially published. For any foreign buyer acquiring Tokyo income property with estate planning objectives, this gap in current disclosure forms is a live risk that requires independent tax counsel, not reliance on the takken-shi alone. For a broader overview of how foreign nationals approach the purchase process, the Koukyuu guide to buying property in Japan as a foreigner covers the full acquisition sequence in detail.

What the Takken-Shi Will Not Tell You

The Article 35 disclosure is comprehensive within its defined scope. Outside that scope, the takken-shi has no statutory obligation to advise, and foreign buyers frequently discover this boundary at the wrong moment.

Four areas are consistently outside the takken-shi’s remit.

First, 外為法 (FEFTA, the Foreign Exchange and Foreign Trade Act) filing obligations. Foreign investors acquiring real estate in designated sensitive zones under the 重要土地等調査法 (Important Land Survey Act, Law No. 84 of 2021, with enforcement expanded in 2024) must file 事前届出 (prior notification) with the relevant ministry before signing. The Cabinet Office has expanded its list of 注視区域 (surveillance zones) and 特別注視区域 (special surveillance zones) to include properties near Self-Defence Force installations, border islands, and critical infrastructure. The takken-shi’s disclosure does not cover this. A Japanese lawyer must be engaged before contract execution if there is any possibility the target property falls within a designated zone.

Second, non-resident withholding tax. Foreign owners of Tokyo rental property who reside outside Japan are subject to 20.42 percent withholding under Article 161 of the 所得税法 (Income Tax Act). They are also required to appoint a 納税管理人 (tax agent) registered in Japan to file on their behalf. The takken-shi will not raise either point.

Third, mortgage access. Non-resident foreign nationals face significant restrictions on Japanese bank financing. Most major lenders, including 三菱UFJ銀行 and 住友不動産販売, require 永住権 (eijuuken, Japanese permanent residency) or at minimum a long-term visa with substantial income documentation for yen-denominated mortgage approval. The takken-shi is not a mortgage broker and will not navigate this for you.

Fourth, the language of the disclosure itself. The juuyou-jikou-setsumei is conducted in Japanese. There is no statutory obligation for the takken-shi to provide an English translation or to use an interpreter. A foreign buyer who does not read Japanese is legally entitled to receive a disclosure they cannot understand. The practical solution is to work with a bilingual takken-shi or to retain a certified interpreter for the session, with both consent and interpretation documented in writing.

Understanding the different property types available in Tokyo is useful preparation before the disclosure session, since the Article 35 checklist varies significantly between detached 一戸建て (ikkodate) houses, マンション units, and properties on 借地権 (shakken, leasehold land).

The Bilingual Takken-Shi Gap in Tokyo

No official bilingual category exists within the takken-shi licensing framework. The national examination is administered in Japanese only, and the 2024 pass rate of 17.6 percent reflects the difficulty of the standard Japanese-language test. Foreign buyers are entirely dependent on brokerage firms that employ English-capable licence-holders or that provide interpretation during the Article 35 session.

The supply of genuinely bilingual takken-shi in Tokyo is limited. The chronic undersupply is most visible in the upper segment of the market, where transaction complexity is highest. A ¥400 million Nishi-Azabu (西麻布) townhouse, a ¥600 million Roppongi Hills (六本木ヒルズ) residence, or a ¥800 million Azabudai Hills (麻布台ヒルズ) unit each involves a disclosure document that may run to 60 or 80 pages, covering leasehold structures, large-scale repair schedules, management association finances, and building-specific legal restrictions. The ability to explain these items in English, accurately and in real time, is not a minor convenience. It is a material protection.

This is the structural argument for working with a private buyer’s advisory where the licensed takken-shi is the same person who conducted the initial consultation, attended the viewings, and negotiated the price. At Koukyuu, a licensed 宅建士 (takken-shi) personally handles every stage of every engagement, from the first briefing call through to the signing of the 37条書面. The ¥300 million transaction floor means the firm operates exclusively in the segment where disclosure complexity is highest and where the cost of a missed item is greatest.

Leasehold Land, Seismic Records, and the Items That Move Price

Three disclosure items in the Article 35 checklist have a disproportionate effect on value and are frequently misread by foreign buyers.

The first is leasehold land type. Tokyo’s residential market contains a significant volume of properties on 借地権 (shakken, leasehold land), and the distinction between 旧法借地権 (kyuuhou shakken, old-law leasehold, governed by pre-1992 legislation with effectively perpetual renewal rights) and 定期借地権 (teiki shakken, fixed-term leasehold, which expires on a set date with no renewal right) is not visible from the listing price. A 旧法 leasehold in Shirokane or Hiroo can be a sound acquisition at the right price. A 定期借地 with 30 years remaining on a 50-year term is a fundamentally different asset. The takken-shi must disclose which type applies; the buyer must understand the difference before the disclosure session begins.

The second is earthquake resistance. Buildings constructed before 1 June 1981 were built to the 旧耐震基準 (old seismic standard). Post-1981 buildings comply with the 新耐震基準 (new seismic standard). The 2024 Noto Peninsula earthquake reinforced institutional and private buyer preference for post-1981 stock. For a foreign buyer, the practical question is whether a pre-1981 building has undergone a formal 耐震診断 (seismic assessment) and, if so, whether it has been retrofitted. The takken-shi must disclose assessment results where they exist; they are not required to commission an assessment where one has not been done.

The third is the repair reserve fund balance for マンション purchases. The 修繕積立金 accumulates over time to fund major building works, typically a full exterior and systems overhaul every 12 to 15 years. A building with a depleted reserve fund approaching a major cycle may face a 一時金 (lump-sum special levy) of ¥500,000 to ¥3,000,000 per unit within two to three years of purchase. The Article 35 disclosure will show the current balance; a buyer who does not know how to read that figure against the building’s age and repair history is effectively blind to a foreseeable cash call. For further context on how property type affects these considerations, the Koukyuu guide to types of Japanese houses provides a useful reference on the structural differences between 一戸建て and マンション ownership.

Practical Steps Before the Disclosure Session

Foreign buyers in 2026 have access to remote disclosure via video call, electronic document delivery, and, in some cases, bilingual takken-shi. The procedural barriers have fallen. The information barriers have not.

Four steps reduce risk before the juuyou-jikou-setsumei is scheduled.

Engage a Japanese lawyer before contract execution, not after. For any property near a Self-Defence Force base, a port, or a communications facility, confirm FEFTA and Important Land Survey Act filing obligations independently. The 手付金 (tetsuke-kin, the earnest-money deposit, typically 10 percent of the purchase price) is non-refundable if the buyer withdraws after signing. On a ¥400 million acquisition, that is ¥40 million at risk.

Confirm the bilingual capacity of the takken-shi who will conduct the disclosure, in writing, before the session date is set. If interpretation will be used, confirm that the interpreter is present for the full session and that their role is documented.

For income properties, obtain written confirmation from the seller’s agent of the acquisition date and the current inheritance tax assessed value, given that the FY2026 Tax Reform Outline’s 5-year rule takes effect on 1 January 2027. The standard disclosure form does not yet capture this; a supplementary written representation is the practical substitute until 全宅連 publishes the updated form.

Review the Article 35 document before the session, not during it. Under the IT重説 rules, the buyer must receive the documents in advance. Use that window. A 60-page disclosure read cold during a one-hour video call is not a disclosure; it is a formality.

According to realestate-tokyo.com’s overview of the real estate notary framework in Japan, the takken-shi’s role is distinct from that of the 司法書士 (shiho-shoshi, judicial scrivener), who handles the 登記 (title transfer) at the Legal Affairs Bureau after signing. Both professionals are required for a complete transaction; neither substitutes for the other.

Koukyuu is a private buyer’s advisory for distinguished Tokyo residences in Omotesando (表参道), Aoyama (青山), Kita-Aoyama (北青山), and Nishi-Azabu (西麻布), focused exclusively on transactions of ¥300 million and above, with a licensed 宅建士 personally handling every stage from the first consultation through to the signing of the final deed. Book a private consultation) to begin a confidential conversation about your acquisition.