In Japan, real estate transactions are subjected to many different laws and regulations, including separate prefectural and municipal ordinances. There are literally hundreds of statutes, rules, regulations and court precedents on which Japan's real estate system is based. In order to be effective, profitable, and risk-free, astute buyers employ appropriate experts to deal with these rules and their implications. It is equally essential that buyers possess at least a rudimentary knowledge of the Japanese system and business culture in order to engage in a meaningful dialog with the seller's representatives and the retained professional experts as well. Few, if any, American investors or their representatives possess an understanding of the Japanese system adequate to meet the tasks attendant to the successful completion of even the most straightforward transaction.
The myriad of peculiarities of the Japanese business culture are widely recognized, and equally misunderstood. Nevertheless, most U.S. businessmen disregard their lack of understanding and attempt, with little or no success, to conduct business with the Japanese. The problems that result are not limited to the well-published inadvertent insults destroying a business relationship. Nightmares of business failures due to such faux pas abound. More significant is that most non-Japanese businessmen are unfamiliar with Japanese pricing strategies, due diligence methods, approval hierarchies, and business communications, i.e., the language of conducting business with the Japanese. For unknown reasons, however, the admitted uninformed continue to blindly pursue business opportunities in Japan pausing only to momentarily wonder about the reasons behind their frustrations and failures.
