How Japanese court auctions work
Some of the cheapest property in Japan is sold at court foreclosure auctions (不動産競売, keibai). The prices look astonishing — but auctions are an expert's game with real risks. Here's what you need to understand before treating an auction listing like a normal sale.
An auction price is a floor, not an asking price.
Every auction figure on Genkan is the court's minimum bid (売却基準価額). It is not what you'll pay, not a negotiable asking price, and not a guarantee you can buy. Treat it as the starting line of a formal legal process.
Two prices: minimum bid & minimum acceptable bid
The court sets a standard sale price (売却基準価額) from an independent appraisal. You may bid at or above the minimum acceptable bid (買受可能価額), which is 80% of that. The highest sealed bid wins, so competitive properties sell for more than the minimum.
The deposit (買受申出保証金)
To bid you must wire a deposit — typically 20% of the standard sale price — before the bidding window. If you win, it counts toward the purchase; if you lose, it's returned. If you win and then fail to pay the balance, you forfeit it.
The timeline (入札期間 → 開札 → 売却決定)
Auctions run on a fixed schedule: a viewing period (閲覧開始日), a sealed-bid bidding window (入札期間), the opening of bids (開札期日), and the sale decision (売却決定期日). Miss the window and you wait for the next cycle. Unsold lots may go to a special sale (特別売却) on a first-come basis.
Occupancy & vacancy risk (占有者)
A property may still be occupied — by the former owner, a tenant, or someone with no legal right to stay. Removing an occupant can require a separate delivery order (引渡命令) and time. Genkan shows the court's occupancy status on each listing; "占有者: なし" (none) is the lowest-friction case.
Read the 3-point set (三点セット) first
Each auction has three court documents: the property description (物件明細書), the site investigation report (現況調査報告書), and the appraisal (評価書). Together they cover condition, occupancy, encumbrances, floor plans and photos. They are the authoritative record — Genkan links to them on the court site, and you should read them before bidding.
Common questions
What is a court auction property (競売物件)?
When an owner defaults on a debt (usually a mortgage), a Japanese district court can seize the property, appraise it, and sell it at public auction to repay the creditor. These auctions are published on the courts' official BIT site (不動産競売物件情報サイト). Genkan surfaces them in English.
Is the listed price the price I pay?
No. The headline figure is the court's minimum bid (売却基準価額). You bid at or above the minimum acceptable bid (買受可能価額, 80% of the base). The final price is whatever the highest sealed bid is, which can be well above the minimum for desirable properties.
Can foreigners buy at Japanese court auctions?
Yes — there is no nationality restriction on buying real estate in Japan, including at auction. But the entire process is conducted in Japanese, requires a Japanese address for some filings, and the paperwork is unforgiving, so most non-residents work with a bilingual agent or judicial scrivener (司法書士).
What is the 3-point set (三点セット)?
Three court documents per property: the property description (物件明細書), the site investigation report (現況調査報告書, including occupancy), and the appraisal (評価書, including floor plans and photos). It is the authoritative source — always read it before bidding. Genkan links to it on the court site.
Source: 不動産競売物件情報サイト（BIT）／裁判所. Genkan is a free, non-commercial showcase and is not a party to any auction. Always verify everything in the court's 3-point set and, ideally, with a bilingual agent or 司法書士 before bidding.