Buying property in Japan Due diligence

The two rooms nobody opens during a viewing

Open access hatch to the crawl space beneath a Japanese house

The two rooms nobody opens during a viewing

A viewing of a Japanese house takes about thirty minutes. You see the rooms, the kitchen, the view from the windows. The underfloor space and the roof space stay shut, and they are the only two places in the building that cannot be staged.

In short

  • Japan has a formal building condition survey, and it is voluntary. The agent's duty is to state whether they can arrange one, not to have one carried out.
  • Even when a survey is done, the standard agreement now says plainly that it does not determine whether defects exist.
  • Wallpaper, flooring and a professional clean transform a room. Nobody tidies a crawl space to sell a house.

Nobody is obliged to look

Overseas buyers often assume that somebody inspects the building as a matter of course, because in their own market somebody does. In Japan that step is optional.

Since 2018, a broker handling a secondhand house has had three duties attached to the formal building condition survey. The mediation agreement must state whether the broker can arrange for one to be carried out. If a survey has been done, its findings and the state of the building's records must be explained before contract. And at contract, matters the parties have jointly confirmed about the structure must be recorded in writing.

Read those again and notice what is missing. All three concern disclosure and arrangement. None of them requires that the building is actually inspected. From April 2024 a broker declining to arrange one has had to give a reason, which is an improvement, and it still stops well short of an inspection happening.

In practice a minority of transactions include one. Figures vary with how they are counted: one ministry survey of buyers put it at around a third, while estimates based on surveyors' own activity have been far lower.

There is a further point that surprises people, and it was added to the standard mediation agreement in 2024 precisely because it was causing disputes. A building condition survey does not determine whether defects exist. It is a visual examination against a defined method, by an architect holding the relevant qualification, of the structural elements and the parts that keep rain out. It is genuinely worth having. It is not a certificate that the house is sound.

So if nobody goes under the floor, nobody goes under the floor, and the sale completes regardless. The responsibility for establishing the condition of the building sits with the buyer, which is the theme running through everything you must verify yourself before buying.

Why these two places and not others

Rooms can be presented. Wallpaper is re-hung, flooring is replaced, and a professional clean changes a house completely. None of that is dishonest, and all of it works.

The underfloor space and the roof space are never presented, because nobody has ever thought it worth the money. How the house has actually been treated is still sitting in both of them, untouched.

Under the floor

Most timber-framed Japanese houses have a crawl space a person can get into. Access hatches are usually in the kitchen or utility room floor, or inside a cupboard.

What to look atWhat it tells you
Sills and joistsIf the sill has decayed, nothing above it is performing as designed
Mud tubesSoil-coloured lines running up the foundation. The clearest possible evidence of termite activity
Posts and floor framingSettlement here is the source of a sloping or bouncing floor
The ground surfaceBare earth, or a concrete damp-proof slab? Bare earth sends moisture upward continuously
Damp, mould, smellThe air as you open the hatch tells you immediately. Earthy and musty means it is ongoing
Water marksPast flooding, leaks or condensation leave lines and staining
PipeworkRust on supply and waste pipes, weeping joints, degraded lagging
FoundationCrack width and direction. Reinforced or not. Sitting on stone footings?
VentsBlocked by a shed, a fence or planting outside. This happens regularly
InsulationFallen or sagging insulation is itself evidence that moisture has been present

Appearance is not enough here. Timber well into decay can look entirely normal on the surface. What identifies it is whether it gives when pressed, whether it sounds dull when tapped, and what it smells like. A photograph of the surface misses that stage completely.

In the roof space

Access is typically through a ceiling hatch in a cupboard or a hallway.

What to look atWhat it tells you
Staining on sheathing and raftersA history of leaks, at the stage before anything shows on the ceiling below
Old staining or freshDry and faded, or still damp? This is what tells you whether it is still happening
InsulationPresent, thick enough, dry? A cold Japanese house frequently begins here
Animal tracesDroppings, tracks, nesting material, torn insulation. All of it means there is a way in
Discarded wings and gritTermite activity. The drywood species appears up here rather than below the floor
Structural connectorsCorroborate the era of construction; their corrosion matters as well
VentilationVents or a ridge vent? Trapped heat and moisture damage the building from above
WiringOld cable, later additions, rodent damage. Directly connected to fire risk
Evidence of alterationA roof grafted onto another, a room added. Affects how the structure behaves

The roof space keeps the most honest record of leaks. A ceiling below can be replaced, and the marks above it remain. It is entirely normal to find several old stains in a roof space belonging to a house whose owner says there have been no leaks. That is usually not a lie. It is something a previous owner dealt with, and the current one never knew about.

The row about wings and grit deserves attention on any older house. Japanese termite treatment is built around species that come up from the soil, and the species that arrives by air lives upstairs. That distinction, and the warranty exclusion that follows from it, is covered in the termite your five-year warranty does not cover.

Looking at these two places is not an inspection. It is building the repair estimate before you agree the price.

Sometimes you physically cannot look

Access is not always possible, and that in itself is information worth having.

  • No hatch. Not unusual in older houses. Lifting a tatami mat sometimes provides a way in.
  • Insufficient height. The space is too shallow for a person to move through.
  • Compartmented foundations. The underfloor is divided, so one hatch does not reach the whole of it.
  • Belongings in the way. A cupboard packed to the ceiling, with the hatch behind it.

When this happens, what anyone can honestly tell you is limited.

"We checked and found no problems" and "we could not check" are entirely different statements. They are also easy to blur, in a report, in a second language, when everyone would prefer the first. Whenever you receive an account of a property's condition, establish which of the two you are being given, area by area.

From practice

Across years at a housing manufacturer I stood on a great many demolition sites, taking down one company's house to build another's. When demolition starts, everything that was concealed comes out at once.

Rat droppings pouring from a ceiling void. An underfloor space that had become a pond. Not once or twice.

From the outside, every one of those houses had looked completely ordinary.

One more thing from those years. What a photograph cannot carry, the site delivers through smell. The air as an underfloor hatch comes open, the back of a cupboard, the first few seconds after walking through the front door. No camera records it, and for anyone with experience it is among the fastest reads available.

Photographs have requirements too

If you are buying from abroad, this information reaches you as photographs and video. A single image captioned "underfloor" is not something a decision can rest on.

Documentation that is actually usable has five properties.

  • Located. Which room it is beneath, which side of the house.
  • Wide and close. Without the wide shot, nobody can place the close-up.
  • Scaled. A rule or a tool in frame, so crack width and stain size mean something.
  • Dated. The basis for comparison on the next visit.
  • Inclusive of the normal. Photograph the sound areas as well as the problems.

The last one matters more than it sounds. A set of photographs showing only the defects gives you no sense of the house. Six bad photographs of a fundamentally sound building and six bad photographs of a failing one look identical.

And whatever care is taken, one thing never appears: the smell. Damp, mould, animal, drainage. Only the person standing there knows. Which is why a report should say in words what was sensed on site, alongside what was seen.

What is found becomes a number

FindingWhat follows from it
Mud tubes or termite damageTreatment, replacement of damaged members, ongoing protection
Decayed sillsReplacement or reinforcement, which can mean taking the interior apart
Underfloor dampDamp-proofing and improved ventilation
Roof space stainingRoof investigation and repair. It returns if the cause is not found
AnimalsSealing the entry, cleaning, replacing insulation
No insulationRetrofitting. A major cost, and the one that decides whether the house is comfortable

None of this work becomes cheaper for having been discovered later. The money is the same either way. What changes is whether it was in the budget. On inexpensive property that distinction is the whole difference between a good purchase and a bad one, as set out in what a cheap Japanese house actually costs.

What a visual check cannot do

Looking at an underfloor or roof space finds what is visible from it. It does not find what is inside a wall, under a finish, or behind something that cannot be moved. No visual examination identifies every defect, and that is true of the formal building condition survey as well.

Structural assessment and seismic evaluation are the province of licensed architects. This is general information and not an opinion on any property. En Beau lo does not provide architectural services or carry out construction, and introduces qualified professionals where they are needed.

Five questions to ask

  1. Are there access hatches to the underfloor and the roof space, and where are they?
  2. Has anyone actually been into the underfloor space, and when?
  3. Is there any history of leaks or termite damage, and of repairs to either?
  4. Has a building condition survey been carried out?
  5. If not, may we arrange one at our own cost?

Do not hesitate over the fifth. A buyer paying for a survey is an ordinary arrangement in Japan, not an imposition. Tens of thousands of yen, on a decision worth millions, that can change the decision.

Somebody has to open the hatch

We visit the property, photograph the building and grounds including the underfloor and roof space where access allows, and report what we found alongside what we could not reach. Where specialist diagnosis is indicated, we introduce an architect or an inspection firm.

Ask us to check a property on site

Sources and notes

The duties relating to building condition surveys, covering the mediation agreement, the pre-contract explanation and the record made at contract, were introduced by the amendment to the Real Estate Brokerage Act in force from 1 April 2018. The requirement to give a reason where a broker does not arrange a survey, and the express statement of the survey's limits in the standard mediation agreement, took effect in 2024. A building condition survey is carried out by an architect who has completed the prescribed course, against the method standard for surveys of existing housing. The figure for how often surveys are carried out is drawn from a consumer survey published by the ministry. Field observations are from work carried out by En Beau lo.

About the author

Toru Fujito — Founder, En Beau lo Co., Ltd.

Licensed Real Estate Transaction Specialist since 2004, with twenty years around Japanese property including custom housing, steel-frame housing and an architectural design office. Why he holds the licence and does not broker property.

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