Arrows International Realty
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact

1/17/2023

Buying a House: Brokerage Fees

Read Now
 

Choosing a Real Estate Company: Brokerage Fees

Brokerage Fees
To prevent trouble concerning a brokerage fee, it is important to take note of the legal regulations for brokerage fees and the precautions to be taken when concluding a mediation contract.
Brokerage fees are capped by law.
According to the Real Estate Brokerage Act, there is a maximum amount of brokerage fees that a real estate company can receive. Therefore, if a real estate company receives a brokerage fee that exceeds the maximum amount, it is in violation of the law. While the maximum amount that is stipulated by law, it does not mean that the maximum amount can automatically be charged.
A brokerage fee is incurred only after a sales contract is concluded.
In the brokerage of a real estate transaction, the real estate company's right to charge a brokerage fee occurs when a sales contract is concluded. (It is generally called "a transaction completion fee.") Therefore, it is not necessary to pay a real estate company a mediating fee until a sales contract is concluded.
The timing of commission payments is also to be discussed.
When a sales contract is concluded, the right to claim a brokerage fee arises from the real estate company. For example, it is not illegal if the full amount of the brokerage fee is paid to the real estate company at the time the sales contract is concluded. However, since in real estate transactions there are many cases in which delivery has not been completed at the time of contract conclusion, it is generally common to pay 50% of a mediating fee at the time of contract conclusion, and to pay the remaining 50% at the time of completion of delivery.
Handling of expenses other than brokerage fees, etc.
Expenses incurred by a real estate company in ordinary brokerage work cannot be charged to the client. For example, the costs related to advertising expenses and site visits for prospective buyers that are generally conducted are included in the brokerage fee that is incurred when a sales contract is concluded. Exceptionally, "actual expenses" such as advertising expenses incurred based on the client's special request are allowed to be charged. For example, a real estate company can claim the cost of advertising that was specially implemented at the client's request, travel expenses for negotiations with a prospective purchaser in a remote area that were conducted at the client's request, etc., separately from the brokerage fee.
However, it should be noted that the exceptions are limited to cases where all of the following conditions are met:
(1) the cost was incurred based on the client's request,
(2) the cost is not incurred in the ordinary brokerage business, and
(3) the cost is an actual cost. 
Maximum brokerage fees
The maximum amount of a brokerage fee to be paid to a real estate company is set for each monetary category of the sales price as follows.
Picture
The maximum amount of a brokerage fee for land with a sales price of 10 million yen
→ The sales price is broken down and calculated as follows.
a) The portion up to 2 million yen
2,000,000 yen  x  5% = 100,000 yen
b) The portion exceeding 2 million yen up to 4 million yen
2,000,000 yen x 4% = 80,000 yen
c) The portion exceeding 4 million yen up to 10 million yen
6,000,000 yen x 3% = 180,000 yen

a + b + c = 360,000 yen
​
*The amount obtained by adding the consumption tax to this amount is the maximum amount of the brokerage fee.
  • For properties exceeding 4 million yen, the following formula can be used to calculate the brokerage fee:
          → sales price x 3 % + 60,000 yen + consumption tax
Picture
Special provisions for the sale and purchase of low-cost vacant houses, etc.
In the case of an inexpensive sale or purchase of a vacant house, etc., where the cost of on-site inspections, etc. is higher than usual, the brokerage fee that can be received from the seller of the vacant house or the person exchanging the house is limited to the total of the above maximum amount and the cost of on-site inspections, etc. (however, the maximum is 180,000 yen plus consumption tax). The brokerage fee must be agreed upon between the two parties in advance.
*Real estate companies to watch out for
Be wary of real estate companies that engage in the following inappropriate discussions regarding brokerage fees. If you have any doubts, you should clarify them until you are satisfied. If you receive an insincere explanation, there is room to reconsider your request to that real estate company.
  • Offering commission terms that exceed the maximum amount.
  • Explaining the maximum amount as if it were a flat fee set by law.
  • Automatically charging advertising fees, etc. that are incurred in addition to the brokerage fee.

Share


Comments are closed.
Details

    Author

    Arrows International Realty Corp.

    Archives

    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    July 2021
    January 2021
    December 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020

    Categories

    All
    360°
    Affidavit
    Airbnb
    Apartment
    Apartmment
    Application
    Architect
    Bank Account
    Bank Loan
    Bath Unit
    Brokerage Fee
    Buyandsell
    Cadastral Map
    Camping
    City Planning
    City Planning Areas
    Condo
    Construction Company
    Consulting
    Custom Home
    Demolition
    Depreciation
    Design
    Disaster Countermeasure
    Disaster Information
    Disaster Prevention
    Dismantlement
    Districts
    DIY
    Do It Yourself
    Documents
    Door Lock
    Double Window Sash
    Earthquake Resistance Standards
    Earthquake-Resistant
    Eel's Bed
    Escape Route
    Established A Corporation
    Evacuation Site
    Financing
    Fire Insurance
    Fixed Term Building Lease Agreement
    Flood
    For Rent
    For Sale
    Fusuma
    Garden
    General Corporation
    Go To Travel Campaign
    Guarantor Company
    Guesthouse
    Hatsu-bon
    Heavy Rain
    Home Loan
    Hotel
    House
    Housing Fire Alarm
    Housing Loan
    Inn
    Inns And Hotels Act
    Insulation
    Investment
    Investment Loan
    Investment Strategy
    Key Exchange
    Kitchen
    Kyo-machiya
    Kyoto
    Kyoto Shinkin Bank
    Land
    Land For Sale
    Land Use Zones
    Landslide Disaster
    Lease Agreement
    Lessee
    Lessor
    License
    Lot Number
    Machiya
    Machiya Design
    Machiya Loan
    Maintenance
    Management
    Mediation Contract
    Minpaku
    Money Flow
    Monthly Cost
    Mortgage
    Move
    National Strategic Special Zones Act
    Negotiation
    New Construction
    Non-rebuilding
    Obon
    Old House
    Omoteya Style
    Overlap Roofing
    PR Visa
    Price Reduce
    Private Lodging
    Private Lodging Business Act
    Property Management
    Purchase
    RC Structure
    RC-Structure
    Real Estate
    Real Estate Agents
    Real Estate Assessment
    Real Estate Investing
    Real Estate Ownership
    Real Estate Tour
    Rebuilding
    Registration Certificate
    Regular Rental Agreement
    Reinforcement
    REINS
    Remodeling
    Remote
    Remote Work
    Renovated
    Renovation
    Rent
    Repair
    Reserve Fund For Repair
    Residential Address
    Rethatching
    Risk Management
    Roof Painting
    Ryokan
    S Structure
    S-Structure
    Sales Contract
    Second Home
    Seismic Control
    Sell The Property
    Set-back
    Shiga
    Shin-bon
    Single-story Home
    Sliding Door
    Soundproofing
    SRC Structure
    SRC-Structure
    Stamp Duty
    Stamp Tax
    Standards
    Structure
    Swimming
    Tatami Mat
    Tax
    Tax Return
    Tea House
    The Building Standards Act
    Tile Roofing
    Transaction
    Tsubo
    Tsunami
    Ura-bon-e"
    Vacation Home
    Vacation Home Management
    W Structure
    W-Structure
    Waterproof
    WFH
    WFH In Kyoto
    Withholding Tax
    Zones

    RSS Feed

Home
About
Contact

​Jp
CN

Real Estate agent in Kyoto, Buy and Sell, Leasing, Renovation and Construction, Management for Investment and Vacation Property, Professional Services for International Customers. We deal in KyoMachiya houses, detached and attached Houses, new and old Condominium Apartments, Block of Apartments and Buildings for Commercial, Residential and Investments use, Manage and Support Operation and New Development of Guesthouse, Ryokan and Hotel, Total Supports for Land and Buildings Real Estate in Kyoto.
Yours sincerely, Founder Ken Hayashi
Real Estate Broker Company License No. Kyoto-Fu Governor ( 1 ) 14044 , ​Member of Kyoto Association of Residential Land Building Business
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact