Hello, dear readers and investors!
As a real estate agent based in Tokyo, I have the privilege of assisting numerous foreign investors
in navigating the intricacies of the Japanese property market.
Today, I’d like to share some insights on a critical aspect of real estate transactions in Japan
– the extension of settlement dates and loan cancellation dates in sales contracts.
This topic is particularly relevant for those planning to finance their property purchase through a housing loan.
In the realm of real estate transactions, it’s common for buyers to finance their purchases through housing loans. In Japan,
when a buyer opts for a housing loan, a specific clause, known as the housing loan clause (or loan cancellation clause),
is typically included in the sales contract.
This clause provides a safety net for buyers,
allowing them to cancel the contract if they fail to secure loan approval from their financial institution.
Now, let’s consider a scenario where the buyer’s financial arrangements are delayed,
leading to an agreed extension of the settlement date (the payment date) with the seller.
A question that often arises in such situations is – does the extension of the settlement date also imply an extension of the loan cancellation date?