Glossary
Tetsukekin (earnest-money deposit)
The 5-10% deposit paid at contract signing; you forfeit it if you walk, the seller pays double if they do.
Tetsukekin is the deposit you hand over when signing the baibai-keiyaku, usually 5 to 10 percent of the price. It is not a refundable reservation fee. Under the Civil Code, if the buyer backs out the deposit is forfeited, and if the seller backs out they must return double. That cancellation right only lasts until the other side begins performance, a window shorter than most buyers assume. Confirm the deposit goes into a trust account or directly to the seller with a receipt, never the agent's operating account, and rely on the financing contingency (yuushi tokuyaku) to protect the deposit if your loan is declined.