When purchasing property, the brokerage fee cap is often overlooked. For deals over ¥4,000,000, the practical cap is 3% of price plus ¥60,000 before tax, then add 10% consumption tax. Knowing this lets you validate quotes instantly.

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1. Core rules

Over ¥4,000,000 the cap is 3%＋¥60,000 pre tax

A quick tax included estimate is 3.3%＋¥66,000

Tiered formula applies at or below ¥4,000,000

Up to ¥2,000,000 use 5%

Over ¥2,000,000 up to ¥4,000,000 use 4%＋¥20,000

In dual agency, each party’s cap is identical

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2. Examples

Price ¥45,000,000

Pre tax cap ¥45,000,000×3%＋¥60,000＝¥1,410,000

Tax included ¥1,410,000×1.10＝¥1,551,000

Price ¥18,000,000 using tiers

Pre tax cap ¥2,000,000×5%＋¥2,000,000×4%＋¥14,000,000×3%＋¥60,000＝¥660,000

Tax included ¥660,000×1.10＝¥726,000

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3. Practice checks and a case

Verify rate and rounding

Ensure no mixing of pre tax and tax included figures

Confirm no extra “admin” or “ad” fees beyond scope

Case

For a ¥68,000,000 condo the quoted fee was ¥2,310,000 tax included

The cap math yields ¥2,100,000 pre tax and ¥2,310,000 with tax

Result the quote is within the legal cap

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Takeaway

Memorize the shortcut 3%＋¥60,000 pre tax for over ¥4,000,000, then multiply by 1.10 to get the tax included cap. With this mental math you can validate quotes and plan cash outlays precisely, while the tiered method handles lower price bands accurately.