REALWorld Law


Other costs of acquisition

What costs/charges (other than tax and VAT) are payable on completion of the purchase of real estate and who is responsible for paying these costs and to whom are they payable?



  • Brokerage fee – A brokerage fee (3% of the transaction price is customary) is often paid to real estate agents in practice.  This is payable by a seller/purchaser who retains a broker.
  • Utilities costs, fixed assets tax and city planning tax – Utilities costs are usually charged every month, and fixed assets tax and city planning tax are charged yearly.  Normally both seller/purchaser allocate these costs in accordance with the timing of the transaction (ie the year/month of the transaction).
  • Registration agent fee – Registration of an acquisition is handled by a judicial notary (shihoshoshi) in Japan, and the fee for this agent must be taken into account.  Normally a purchaser bears the cost of these fees.