The role of a Japanese real estate agency
In Japan, a real estate agency (fudōsan gaisha, fudōsan-gaisha, literally "real estate company") acts as an intermediary (chūkai, 仲介, brokerage) between seller and buyer. It publishes listings, organises viewings (naiken, naiken, property viewing), negotiates the price, prepares the contract and coordinates closing with the judicial scrivener.
Crucial point for foreigners: most properties are not "exclusive" to a single agency. Thanks to the internal REINS network (レインズ, the mandatory inter-agency database), almost all agencies see the same listings. You therefore do not need to contact ten agencies: one serious agency is enough to access nearly the whole market.
What the agency does (and does not do)
- It presents the property and drafts the mandatory legal disclosure (see below).
- It does not finance your purchase: a Japanese mortgage is reserved for people both resident AND salaried in Japan; otherwise, cash purchase.
- It gives you no visa: buying property in Japan grants no right of residence, as our guide on buying a house in Japan without a visa explains.
The takken-shi: the mandatory licensed agent
The profession is governed by the real estate transaction law (takken-gyōhō, takuchi tatemono torihiki gyō-hō). Each agency must employ at least one takken-shi (takuchi tatemono torihiki-shi, state-licensed real estate agent), at a ratio of at least one licensee per five staff.
Only a takken-shi may perform three reserved acts:
- Reading the explanation of important matters (jūyō jikō setsumei, jūyō jikō setsumei) before signing — a legal document detailing everything about the property.
- Affixing their seal and licence number on that document.
- Signing the brokerage contract.
Before signing, always demand this jūyō jikō setsumei: it is your main protection. We break down every line in our article on the jūyō jikō setsumei, the explanation of important matters.
Agency commission: capped by law at 3%
The brokerage commission (chūkai tesūryō, chūkai tesūryō) is not free-market: it is capped by law. For a property above ¥4 million (the most common case), the cap is:
Price × 3% + ¥60,000 + consumption tax (10%).
The "3% + ¥60,000" formula is a shortcut for the lower brackets: the law actually sets 5% on the first ¥2M, 4% from ¥2M to ¥4M, then 3% beyond. The "+ ¥60,000" offsets the bracketed calculation. The consumption tax (shōhizei, shōhi-zei) of 10% applies to the commission (not to the property price).
Concrete example
For an apartment at ¥30M (≈ €200,000): commission = 30,000,000 × 3% + 60,000 = ¥960,000, + 10% tax = ¥1,056,000 (≈ €7,000).
This commission is part of the purchase costs, which stay overall ≤ 6% of the price at immoJapon (taxes, registration, fees included). The full breakdown is in our article on purchase costs for Japanese real estate.
Table: agency commission by price bracket
Estimated maximum legal commission (excluding consumption tax) for a property above ¥4M, using the 3% + ¥60,000 formula.
| Property price | € equivalent | Max. commission (excl. tax) | With 10% tax |
|---|---|---|---|
| ¥10M | ≈ €65,000 | ¥360,000 | ¥396,000 |
| ¥20M | ≈ €130,000 | ¥660,000 | ¥726,000 |
| ¥30M | ≈ €200,000 | ¥960,000 | ¥1,056,000 |
| ¥50M | ≈ €330,000 | ¥1,560,000 | ¥1,716,000 |
| ¥100M | ≈ €665,000 | ¥3,060,000 | ¥3,366,000 |
These are caps: an agency may charge less, but rarely does. Factor this cost into your overall budget with our yield simulator.
Dual agency (ryōte torihiki) and its conflicts of interest
This is the trickiest point in the Japanese system. A single agency can represent both the seller AND the buyer: this is ryōte torihiki (ryōte torihiki, "both-hands transaction"). It then collects two commissions — one from each party — on the same sale.
Why it is a problem for the buyer
- Conflict of interest: the agency has an interest in closing fast and at a high price to earn both commissions, not necessarily in defending your negotiating margin.
- Listing retention (kakoikomi, 囲い込み): some agencies "hoard" a seller mandate by not sharing it openly on REINS, so they can find the buyer themselves and pocket both sides. This is a bad practice denounced by the authorities.
How to protect yourself
- Ask whether the agency is on dual agency for the property you want.
- Prefer an agency on a single buyer-side mandate (kata-te, 片手, "one hand"), which defends only you.
- Have the property checked by an independent third party. Our personalised support always stands on the buyer's side.
Portals, English-speaking agencies and how to choose
To explore the market even before contacting an agency, the major Japanese portals list almost all the stock:
- SUUMO (スーモ) — the largest consumer portal.
- HOME'S (ホームズ) — rich in filters and data.
- at home (アットホーム) — strong on older and regional stock.
These sites are in Japanese; we present translated and verified selections in our hand-picked properties.
Do you need an English-speaking agency?
Some agencies target foreign buyers and operate in English. That is comfortable, but two limits: their stock is sometimes narrower and their commission stays at the legal cap. What matters is not language, but buyer-side independence and transparency on dual agency.
Our criteria for choosing
- An identifiable takken-shi and a verifiable licence number.
- A clear buyer-side stance (no hidden dual agency).
- A commission within the cap and a total budget ≤ 6%.
- The ability to provide the jūyō jikō setsumei translated or explained.
In short: surround yourself well to buy in Japan
A real estate agency in Japan is a regulated intermediary: commission capped at ≈ 3% + ¥60,000, a mandatory licensed takken-shi, and a REINS system that makes the vast majority of properties accessible from a single serious agency. The real trap is not the cost, but dual agency (ryōte torihiki) and its conflicts of interest.
Keep the fundamentals: total costs ≤ 6%, cash purchase for a non-resident, and an agency genuinely on the buyer's side. To be defended from search to key handover, with verification of the jūyō jikō setsumei and of any hidden dual agency, discover our personalised support.
Frequently asked questions
How much does a real estate agency cost in Japan?
The brokerage commission is capped by law: for a property above ¥4M, it is at most 3% of the price + ¥60,000, plus 10% consumption tax. For a ¥30M property (≈ €200,000), that is about ¥1,056,000 (≈ €7,000). This commission is part of the purchase costs, which stay ≤ 6% of the price.
What is dual agency (ryōte torihiki)?
It is when a single agency represents both the seller and the buyer and collects two commissions on the same sale. The risk for the buyer is a conflict of interest: the agency may prioritise a fast close and a high price over your negotiation. A single buyer-side mandate is preferable.
Do I need several agencies to see all properties?
No. Thanks to the REINS inter-agency network, almost all agencies see the same listings. A single serious agency is enough to access nearly the whole market. Using many agencies mainly complicates coordination without really widening your choice.
What is a takken-shi?
It is the state-licensed real estate agent (takuchi tatemono torihiki-shi). Each agency must employ at least one. Only they can read and seal the explanation of important matters (jūyō jikō setsumei) before signing. Always demand this document: it is your main legal protection.
Is an English-speaking agency essential for a foreigner?
No, it is comfortable but not essential. Its stock is sometimes narrower and its commission stays at the legal cap. What matters most is that the agency is buyer-side independent, transparent on dual agency, and able to explain the jūyō jikō setsumei to you.
Official sources
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