Auctions in Japan: acquire a low-cost property through a straightforward procedure

Obtaining real estate via court auctions is now significantly more easy and secure due to enhanced legal provisions. With fewer obstacles in place, an increasing number of foreigners are turning to auction concierges to buy houses through these auctions.

In the realm of real estate, terms like court auctions, judicial foreclosures, or foreclosed properties have often elicited negative connotations. However, contemporary court auctions paint a different picture – one of safety and transparency. Despite this positive shift, many remain unaware of the opportunities they present. Today, Japan boasts clearer and more rigorously enforced laws governing these auctions, signaling a new era of reliability and accessibility in the market.

An auction property refers to real estate seized by the court due to the owner’s default on a debt, subsequently offered for sale through a bidding process. Default scenarios often entail non-payment of a mortgage or outstanding debt. In such cases, the financial institution or creditor holding the mortgage initiates legal proceedings, leading to the property’s seizure and eventual auction.

The distinction between an auction property and a conventional one resides in the sales and purchase process: With a conventional property, the buyer and seller finalize a sales contract, completing the transaction.

Conversely, an auction property lacks a specific seller or owner. Instead, the court issues a public notice of the auction, with bids accepted within a designated time-frame. Bidding follows an auction format, with the highest bidder securing the property among all interested buyers. The successful bidder then remits the winning bid amount to the court, finalizing the purchase of the auctioned property.

Auction properties present a notable advantage: they typically come with lower price tags compared to standard properties. Although the precise price differential varies by property, as a rule of thumb, auction properties tend to be approximately 30 to 50% more affordable than their conventional counterparts.


When it comes to real estate transactions, the conventional approach often entails negotiating with sellers and navigating through the complexities of the real estate registry to effect ownership changes. This process can be time-consuming and intricate. However, opting for an auction property significantly simplifies matters, as the transaction is overseen by the court. The court handles all necessary registration procedures, including the transfer of ownership and the cancellation of existing mortgages, thereby expediting the title transfer process for the buyer.

In a standard transaction, these registration adjustments must be finalized on the property handover day, potentially causing inconvenience, especially if the buyer is responsible for managing the registration process independently. Participating in an auction as a buyer is comparatively straightforward.

With the court overseeing the entire process, purchasing an auction property offers a more streamlined and hassle-free experience for our customers.

If you’re interested in owning property in Japan, don’t hesitate to reach out to us via WhatsApp at +81 80 8027 2344 or by email at We’re here to assist you every step of the way.