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).

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