Agent charged above legal fee maximum. Illegal?

What the Law Says

Japanese law strictly caps real estate brokerage fees to protect consumers from excessive charges.

Under the Real Estate Transaction Business Act, real estate agents in Japan may not charge fees exceeding statutory limits based on property price and type. For residential properties, the maximum fee is 3% of the transaction price plus ¥60,000 (for transactions under ¥2 million) or 5% plus ¥1.1 million (for transactions ¥2 million or more), subject to rounding rules. For commercial properties, the cap is 3% plus ¥600,000.

Charging above these limits is unlawful. The Act also requires agents to refund any excess amount within 14 days of demand by the client. Violations may result in administrative penalties, including business suspension or fines up to ¥1 million.

Statutory Text

The commission that a real estate transaction business operator may receive shall not exceed the amount calculated in accordance with the rates and amounts prescribed by Cabinet Order.

— Real Estate Transaction Business Act, s. 34 — Commission Limits

Statutory Text

When a real estate transaction business operator receives an amount exceeding the permissible commission, the operator must return the excess amount to the client without delay, and in any case within two weeks from the date of demand by the client.

— Real Estate Transaction Business Act, s. 34-2 — Refund of Excess Commission

What to Do

Sources