This article is part of the Japan property series on transaction costs. It answers a question that often confuses buyers: how the brokerage fee in Japan is calculated and when it is paid. The overview of the whole series is in the main article, “Buying Property in Japan Costs More Than the Price: Brokerage, Registration, Taxes, Insurance and Holding Costs”.
Japan’s brokerage fee (仲介手数料) has a legal ceiling but no fixed price. The ceiling is calculated separately for the buyer and the seller. Where the standard brokerage contract terms are used, the broker may only ask you for payment once the sale contract has been concluded. The sections below cover how the ceiling is calculated, the special rule for low-priced properties, which charges may not be added on top, and when payment falls due.
Why Do Brokerage Fee Quotes Seem Hard to Read?
If you buy property in Japan, you may have heard that the brokerage fee is “3% plus 60,000 yen”, and then received a quote showing a different number. A quote may not make clear whether consumption tax is added on top, whether lower-priced properties follow a different calculation, or whether payment is due at contract signing or at handover. Buyers living overseas also worry about being overcharged.
The Short Answer: What Is the Most a Buyer Pays?
A buyer pays at most the legal ceiling, and that ceiling covers your side only. For a broker that is liable for consumption tax, where the sale price exceeds 4 million yen the ceiling works out to “sale price x 3.3% + 66,000 yen”, consumption tax included. Prices of 4 million yen or less are calculated in tiers. For properties with a sale price of 8 million yen or less, the ceiling can reach 330,000 yen (tax included) if the broker explains it in advance and you agree. The ceiling is not a set price: a broker is not automatically entitled to charge it, and the amount must be agreed with you. As of September 2026, the ceiling does not differ because you are a foreigner or live overseas.
How Is the Ceiling Calculated?
The ceiling on the brokerage fee is set under Article 46 of the Real Estate Transaction Business Act (宅地建物取引業法, “the Real Estate Act” below) and published by the Minister of Land, Infrastructure, Transport and Tourism. A broker may not charge more than this amount. Each broker must display the amount at every business office (事務所) where customers can see it.
The published method splits the sale price into three bands, applies a rate to each, and adds the results:
| Portion of the sale price (excluding consumption tax) | Ceiling rate (consumption tax included) | Equivalent before tax |
|---|---|---|
| Up to 2 million yen | 5.5% | 5% |
| Over 2 million up to 4 million yen | 4.4% | 4% |
| Over 4 million yen | 3.3% | 3% |
Where Does “3.3% + 66,000 Yen” Come From?
When the sale price is above 4 million yen, the first two bands are fixed amounts: 2 million x 5.5% = 110,000 yen and 2 million x 4.4% = 88,000 yen, a total of 198,000 yen. The third band is (sale price – 4 million) x 3.3%. Subtracting 4 million x 3.3% = 132,000 yen from 198,000 yen leaves 66,000 yen. The ceiling can therefore be written as “sale price x 3.3% + 66,000 yen”.
This shortcut formula is derived from the tiered rates; the rules themselves only state the tiered rates. The familiar “3% + 60,000 yen” is the pre-tax version, and multiplying it by 1.1 gives the same amount. When the sale price is 4 million yen or less, the shortcut cannot be used and you must calculate band by band using the table above.
Consumption Tax Is Already Included
The rates in the table already include 10% consumption tax, so tax is not added again. If a quote shows the pre-tax amount and the consumption tax separately, the two together may not exceed the ceiling.
The sale price used in the calculation excludes consumption tax. For a home bought from a developer or another business, where the building portion of the price includes consumption tax, that tax must first be removed before the rates are applied.
All of the above is the ceiling for brokers that are liable for consumption tax (課税事業者, “taxable brokers” below). Brokers exempt from consumption tax (免税事業者, “exempt brokers” below) are calculated differently: the amount obtained from the same method is multiplied by 100/110, and a pass-through of input consumption tax of up to 0.04 times that amount is then added. The pass-through is part of the fee and may not be charged to you separately as consumption tax. The result is a ceiling lower than that for taxable brokers.
One Broker Acting for Both Sides, or Several Brokers
The ceiling is calculated once for each party. When the same broker acts for both buyer and seller, it may charge each side, but what you pay still does not exceed the ceiling. When several brokers are involved, the total charged to you also stays within the ceiling. All of this concerns brokerage in the intermediary sense (媒介); different rules apply when a business acts as an agent (代理) buying or selling on your behalf.
Why Can the Fee Be Higher on Properties of 8 Million Yen or Less?
Land or buildings with a sale price (excluding consumption tax) of 8 million yen or less fall under the special rule for “low-priced vacant homes and similar” (低廉な空家等). Despite the name, it applies whether or not the home is occupied. The broker may take into account the costs the transaction requires, including labor costs, and charge more than the usual ceiling: up to 330,000 yen for a broker liable for consumption tax (300,000 yen x 1.1, tax included).
The special rule does not apply automatically. When the brokerage contract is signed, the broker must first explain the fee within the special ceiling and obtain your consent. Without that prior consent, the usual ceiling applies. For exempt brokers, the special ceiling is converted using the method described above.
This special rule was amended on July 1, 2024. Before the amendment, the threshold was 4 million yen, it applied only to properties needing extra costs such as on-site investigation, it could be charged only to the seller, and the ceiling was 198,000 yen (180,000 yen x 1.1). The threshold is now 8 million yen and the ceiling 330,000 yen.
As of September 2026, the current rules do not restrict the special fee to sellers, so a buyer may also be asked to pay the special amount. Using the shortcut formula, at a sale price of exactly 8 million yen the usual ceiling is also 330,000 yen; the special rule produces an amount higher than the usual calculation only for properties priced below 8 million yen.
**Example** (illustration only, assuming a taxable broker and a sale price excluding consumption tax): You buy a home with a sale price of 4 million yen. Under the usual calculation, the ceiling is 2 million x 5.5% + 2 million x 4.4% = 198,000 yen (tax included). If, when signing the brokerage contract, the broker explains the special rule and you agree to it, the ceiling becomes 330,000 yen (tax included). Confirm which method the quote uses before signing, then decide whether to agree; the actual amount depends on what you and the broker agree.
What Else Can a Broker Charge Besides the Brokerage Fee?
Apart from the brokerage fee, a broker in principle may not charge any additional remuneration. Fees for showing a property (案内料), application fees (申込料), and advertising costs you did not request may not be charged. The costs of registering the listing with the designated information network, general advertising and property investigation are borne by the broker.
Two kinds of charge may be added. The first is advertising you have asked the broker to produce. The second is actual expenses for something you specially requested and agreed in advance to pay, such as a site investigation or travel to a distant location.
Related services other than brokerage (媒介以外の関連業務) may be charged separately, but the broker must first explain the contract terms and sign a separate written contract apart from the brokerage contract, stating the scope of work and the fee. If a quote contains items other than the brokerage fee, ask which of these it is: advertising or expenses you requested, another service under a separate contract, or neither.
When Is the Brokerage Fee Paid?
Under the Ministry of Land, Infrastructure, Transport and Tourism’s standard brokerage contract terms (標準媒介契約約款), the broker may request payment only after the sale contract it arranged has been formally concluded. If the sale contract has a condition precedent (it takes effect only when a condition is met), the broker may request payment only after that condition is met.
The broker must also first deliver to both parties the document required by Article 37 of the Real Estate Act before collecting payment. The actual payment timing is written in the brokerage contract in the field “timing of receipt of the agreed fee” (約定報酬の受領の時期), and that agreement governs.
The contract states whether the brokerage contract uses the standard terms. If it does not, payment timing and refunds follow whatever that contract provides.
If the Mortgage Fails, Can I Get a Paid Brokerage Fee Back?
Yes, provided the brokerage contract uses the standard terms and the sale contract contains a mortgage clause (ローン条項). The standard terms cover two kinds of mortgage clause: the sale contract is automatically cancelled if the loan is not approved, or you may cancel the contract if the loan is not approved. When the loan is confirmed to have failed and the contract is cancelled as a result (under the second kind, you must cancel on that basis), the broker must refund the full fee received as soon as possible, without interest.
Cancellation for any other reason falls outside this provision. When buying with a Japanese mortgage, check for this clause before signing the sale contract.
There Are Three Types of Brokerage Contract. Do They Affect the Fee?
No, they do not affect the ceiling. The fee ceiling is the same under all three types; they differ in term, reporting frequency and listing duty:
- Exclusive right to sell contract (専属専任媒介契約): you may entrust only this one broker, and you may not conclude a deal with anyone other than a counterparty the broker finds; the term is at most 3 months; the broker reports at least once a week.
- Exclusive brokerage contract (専任媒介契約): you may entrust only this one broker; the term is at most 3 months; the broker reports at least once every 2 weeks.
- General brokerage contract (一般媒介契約): you may entrust several brokers at once; the law sets no term limit, and the standard terms likewise set it within 3 months.
After an exclusive or exclusive-right-to-sell contract expires, it can be renewed at your request, each time for no more than 3 months. Under any type, the broker must notify you without delay when someone makes an offer to buy. Where an exclusive or exclusive-right-to-sell contract is signed to entrust a sale, the broker must register the property with the designated information network (指定流通機構) designated by the Minister within 7 days (5 days for exclusive right to sell, excluding non-business days).
Statements That Deserve a Follow-Up Question
- “The brokerage fee is 3% + 60,000 yen, same for everyone”: this is a conversion of the ceiling, not a set price, and the amount can be negotiated.
- “3.3% + 66,000 yen, tax extra”: this formula already includes consumption tax, so tax may not be added again on top.
- “Every property under 8 million yen costs 330,000 yen”: 330,000 yen is a ceiling, and the broker must explain it in advance when the brokerage contract is signed and obtain your consent.
- “A viewing costs a viewing fee” or “an application costs an application fee”: neither may be charged separately.
- “Foreign clients pay a different brokerage fee”: as of September 2026, the legal ceiling does not differ by nationality or by whether you live in Japan. For extra items in a quote, ask which type they are using the method above.
- “Pay part of the brokerage fee now, before the sale contract is signed”: when the standard terms are used, the broker may not request remuneration before the sale contract is concluded.
How to Decide Your Next Step Before Signing a Brokerage Contract
- Check the fee amount displayed at the broker’s business office and compare it with the quote.
- Calculate the ceiling for your side using the method above and confirm the quote does not exceed it.
- If the sale price is 8 million yen or less, ask whether the special rule applies and what the amount would be.
- Ask whether there are any charges beyond the brokerage fee, which type each one is, and whether there is an estimate.
- Check which type of brokerage contract it is, whether the standard terms are used, and the “timing of receipt of the agreed fee” field.
- If you are using a Japanese mortgage, confirm that the sale contract contains a mortgage clause.
If a quote exceeds the ceiling you calculated, or the other side cannot explain which type a charge is, hold off on signing. The brokerage fee is only one part of the cost of buying; registration fees, taxes and monthly costs should be estimated together, as set out in the main article, “Buying Property in Japan Costs More Than the Price: Brokerage, Registration, Taxes, Insurance and Holding Costs”.
Japan Brokerage Fee FAQ
Can the brokerage fee be negotiated when buying a home in Japan?
Yes. The legal amount is a ceiling, not a set price, and a broker is not automatically entitled to charge it. The specific amount is agreed with you, taking into account the brokerage services provided. The agreed amount should be written into the brokerage contract.
Is the 3.3% brokerage rate with or without tax?
With tax. The rates of 5.5%, 4.4% and 3.3% all include 10% consumption tax, equivalent to 5%, 4% and 3% before tax. The sale price used in the calculation excludes consumption tax, and for homes bought from a business, the consumption tax on the building portion must be removed first.
Is the brokerage fee higher when buying a property of 8 million yen or less?
It can be. Since July 1, 2024, a broker that explains it in advance when signing the brokerage contract, and has your consent, may charge more than the usual ceiling: up to 330,000 yen (tax included) for a taxable broker. Without prior consent, the usual ceiling applies.
Glossary
- Brokerage fee (仲介手数料): the remuneration a broker charges the client after arranging a sale; the legal term is “remuneration” (報酬).
- Taxable broker (課税事業者): a business liable for consumption tax; the ceiling amounts in this article are based on this type of broker.
- Low-priced vacant homes and similar (低廉な空家等): land or buildings with a sale price of 8 million yen or less excluding consumption tax, whether or not occupied.
- Standard brokerage contract terms (標準媒介契約約款): the model brokerage contract terms set by the Ministry of Land, Infrastructure, Transport and Tourism.
- Designated information network (指定流通機構): an organization designated by the Minister that operates REINS (レインズ), the system through which brokers exchange property information.
About the Data
- Information in this article was checked on September 30, 2026, against the Real Estate Transaction Business Act and its enforcement regulations, the Ministry’s fee notice, the Ministry’s interpretation and operation guidelines for the Act (《宅地建物取引業法の解釈・運用の考え方》), the standard brokerage contract terms, and explanatory materials on the 2024 amendment. All sources are in Japanese; English names are translations.
- The following were derived or calculated from official documents, and no official document states them in a single sentence:
- “Sale price x 3.3% + 66,000 yen”, 198,000 yen at a 4 million yen price, the usual ceiling also being 330,000 yen at 8 million yen, and the lower ceiling for exempt brokers were all worked out from the tiered rates and the conversion method.
- That a buyer may also be charged the special fee for properties of 8 million yen or less comes from comparing the notice text before and after the 2024 amendment: before, it was limited to the seller; the current text has no such limit.
- That the ceiling does not differ by nationality or residence is inferred from the absence of any such distinction in Article 46 of the Real Estate Act, the fee notice and the interpretation guidelines that were checked.
- Payment timing and the refund when a mortgage fails follow the wording of the standard brokerage contract terms; the terms for the three contract types were not compared word by word, and contracts that do not use the standard terms follow their own provisions.
- As of the check date, no further amendment has been seen after the fee notice that took effect on July 1, 2024.
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Sources
- e-Gov Law Search: Real Estate Transaction Business Act (宅地建物取引業法)
- e-Gov Law Search: Enforcement Regulations of the Real Estate Transaction Business Act (宅地建物取引業法施行規則)
- 国土交通省－宅地建物取引業者が宅地又は建物の売買等に関して受けることができる報酬の額（昭和45年建設省告示第1552号）
- 国土交通省－同告示（令和6年6月30日まで版）
- 国土交通省－宅地建物取引業法の解釈・運用の考え方（令和８年４月１日施行版）
- 国土交通省－報道発表資料（令和6年6月21日）空き家等に係る媒介報酬規制の見直し
- 国土交通省－空き家等に係る媒介報酬規制の見直し概要資料
- 国土交通省－建設産業・不動産業：宅地建物取引業法関係
- 国土交通省－標準媒介契約約款（令和6年4月1日以降版）
Important Notice
This article is a general information summary and is not individual legal or tax advice. The information was checked on September 30, 2026. Brokerage fee rules may change; rely on the Ministry of Land, Infrastructure, Transport and Tourism’s current notice and the brokerage contract you sign.
