As a private investigative agency in Japan, we are able to assist the clients who are planning to purchase real estate properties in Japan. Our services include the background checks about the real estate agencies, due diligence of the properties, the location investigation of the missing owners of the real estate properties, and so on.
Below are the brief explanations about the type of real estate agencies and business practices of real estate dealings in Japan.
Type of Agencies
There are brokerage and agency in the sales form of real estate agents. However, in the case of used real estate properties, conventionally there are few sales as an agency.
The brokerage fee is defined as the selling price X’s 3% of the sales price + 60,000 yen + consumption tax.
Compensation Rules of Real Estate Agencies
If the real estate agent can mediate both the buyer and the seller, they can get 6% of the sales price + 120,000 yen + consumption tax. This is called a two-handed brokerage.
They get a 3% commission if they only broker the seller and a 3% commission if they only broker the buyer. This is called one-handed mediation.
REINS (Real estate Network System)
Real estate transaction prices are to be registered in REINS (Real Estate Information Network System) developed by the Ministry of Land, Infrastructure, Transport, and Tourism. REINS can only be accessed by real estate agents. However, REINS registration is on a voluntary basis and not mandatory. Even if there are real estate transactions, there are many real estate agents who do not register with REINS. In that sense, REINS is said to be virtually non-functional.
Past Transaction Prices Are Not Disclosed
Although REINS is designed to register past purchase prices of all the real estate properties, in reality it does not work for that purpose. In addition, since REINS is only disclosed to real estate agents, ordinary users are unable to learn the market prices of real estate. In that sense, it is another adverse point of REINS. If the real estate agent is the owner of the real estate property, the real estate company, which is the owner, becomes the seller’s brokerage agent.