Brokerage fees on cheap vacant homes may be increased
In order to encourage and promote the sale of long-vacant homes in Japan, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is considering increasing the maximum commission that a real estate agency can charge on a transaction.
Real estate brokerage fees in Japan are currently capped at the following rates:
| Sale price: | Commission*: |
| < ¥2,000,000 | 5% |
| ¥2,000,000 ~ ¥4,000,000 | 4% + ¥20,000 |
| > ¥4,000,000 | 3% + ¥60,000 |
| *Consumption tax is then charged on top of the brokerage fees. | |
Under current laws, the maximum an agency could charge on the sale of a 3,000,000 Yen property is 140,000 Yen + consumption tax to their client. If they represent both the buyer and the seller, then can charge this to both parties. On a 2,000,000 Yen sale, the maximum commission is currently 100,000 Yen + consumption tax. The revision would apply to vacant properties sold below 4,000,000 Yen (approx. 36,000 USD).Read more