How Much Is the Agent Fee When Buying in Japan? The Cap and the “3% + ¥60,000” Formula
Written by：SUMIMOTO Inc.Editorial Policy
When buying property in Japan, the brokerage fee is one cost to check alongside the price. On a purchase worth tens of millions of yen, the fee alone can easily exceed ¥1 million.
This article answers two questions with worked examples: how the cap is set and roughly how much it comes to. The amounts are guidelines only; always confirm them in your brokerage agreement and the explanation of important matters.
Who sets the cap on the agent fee, and how?
The commission a real estate company (a licensed real estate transaction business operator) may receive for brokering a sale is capped under the Real Estate Transaction Business Act. The calculation method is set by the Minister of Land, Infrastructure, Transport and Tourism in a public notice, and receiving more than that amount is not permitted.
The cap applies per client. When a company acts for both buyer and seller, it is generally explained that it may receive up to the cap from each of them. The fee is also a success-based commission that arises only when the brokerage results in a contract; as a rule it is not charged before the contract is concluded.
Legal basis
- Real Estate Transaction Business Act, Art. 46(1)
- The commission a licensed operator receives must not exceed the amount set by the Minister.
- Real Estate Transaction Business Act, Art. 46(2)
- As a rule, receiving a commission above that amount is not permitted.
- Real Estate Transaction Business Act, Art. 46(4)
- Each office is required to display the commission amounts set by the Minister in a place easy to see.
- Real Estate Transaction Business Act, Art. 34-2
- When a brokerage agreement is concluded, a document stating the matters on commission is to be provided.
How is “3% + ¥60,000” calculated?
The basic method splits the sale price (excluding tax) into three bands, applies a rate to each, and adds them up.
Brokerage commission cap for a sale (excl. tax, per client)
| Sale price band (excl. tax) | Rate |
|---|---|
| Up to ¥2 million | 5% |
| Over ¥2 million up to ¥4 million | 4% |
| Over ¥4 million | 3% |
In practice, for any property over ¥4 million the shortcut “price × 3% + ¥60,000” gives the same result; consumption tax (10% for taxable operators) is then added. For example, at ¥10 million excluding tax, both methods give ¥360,000, or ¥396,000 including tax.
Key figures in this article
- Cap for prices over ¥4 million (excl. tax)
- 3% + ¥60,000
- Consumption tax added on top
- 10%
- Cap for a ¥50 million property (incl. tax)
- 1.716million yen
Shortcut: price × 3% + ¥60,000
For taxable operators
(¥50 million × 3% + ¥60,000) × 1.1
How much is the fee at different prices?
The shortcut makes it easy to calculate the cap for each price range. The table below shows indicative caps based on the sale price excluding tax.
Indicative fee cap (per client, approximate)
| Sale price (excl. tax) | Fee (excl. tax) | Fee (incl. 10% tax) |
|---|---|---|
| ¥10 million | ¥360,000 | ¥396,000 |
| ¥30 million | ¥960,000 | ¥1,056,000 |
| ¥50 million | ¥1,560,000 | ¥1,716,000 |
| ¥80 million | ¥2,460,000 | ¥2,706,000 |
These figures are caps. Many companies charge the full cap in practice, but setting a lower fee is allowed under the law. Policies differ by company, so confirm before signing a brokerage agreement.
When is the fee charged, and when is it not?
The fee arises when a real estate company steps between seller and buyer and brings about a sales contract. A common arrangement is to pay half when the contract is concluded and half at handover, but this is market practice, not a legal requirement.
On the other hand, when you buy a new condominium or new house directly from the seller company, no brokerage is involved, so a brokerage fee is generally not charged. You can check the “type of transaction” field (seller, broker, etc.) in the listing.
What should you confirm before signing?
If you live overseas and cannot attend in person, checking documents matters even more. Before signing, secure the basis of the fee calculation and the payment timing in writing.
Common oversights and fixes
✕Estimating the fee excluding tax and leaving the roughly 10% difference out of the budget.
→Always check the tax-inclusive amount on the quote and include the consumption tax in your contingency.
✕Paying a brokerage fee to another company without realizing the property was sold directly by the seller.
→Check the transaction type in the listing; if it is a seller listing, contact the seller directly.
✕Verbally agreeing to an “advertising fee” or “administration fee” and receiving a large bill later.
→For anything beyond the cap, agree only after receiving the name, amount and reason in writing.
✕Not confirming payment timing and transferring the full amount before the contract.
→Payment is normally due after the contract is concluded; confirm timing and instalments in the brokerage agreement.
Brokerage fee checklist
- I confirmed the type of transaction (seller or broker) in the listing and the explanation of important matters
- I received the formula and the tax-inclusive amount in writing
- I confirmed the payment timing and instalments in the brokerage agreement
- I checked whether any fees under other names apply
- I built a funding plan covering the total including the fee
- I asked a licensed real estate transaction specialist about anything unclear
FAQ
- Q. Can the agent fee be negotiated?
- A. The cap is set by law, but charging less is permitted. Whether a company agrees depends on its policy, so it is realistic to ask before signing the brokerage agreement.
- Q. Do both buyer and seller pay a fee?
- A. The cap applies to each client separately. Generally, buyer and seller each pay the company they engaged.
- Q. Is the fee refunded if the contract is cancelled?
- A. It depends on the circumstances and the contract. Check the reason for cancellation and the brokerage agreement, and consult a professional if needed.
- Q. Is the fee the same if I buy from overseas?
- A. The way the cap works does not depend on where you live. Remittance and paperwork costs may be separate, so check the breakdown in the quote.
In the SUMIMOTO Hub app, a 24-hour AI advisor explains in several languages how brokerage fees are calculated and how to read the explanation of important matters. Please also confirm final amounts and contract terms with a qualified professional such as a licensed real estate transaction specialist.
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References & Sources
This article provides general information as of its publication date and is not individual legal, tax or investment advice. It was written with the help of generative AI.Editorial Policy
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