Types of Real Estate Agency Contracts in Japan: A Complete Guide for Foreigners

When buying or selling property in Japan, one of the most important decisions you will make is choosing the right type of real estate agency contract. Japan has a unique system with three distinct contract types, each with different rules, obligations, and implications for how your property is marketed and sold. For foreigners navigating the Japanese real estate market, understanding these contracts is essential to protect your interests and ensure you receive the best possible service.

This guide explains the three types of real estate agency contracts (媒介契約 / baikai keiyaku) used in Japan, their key differences, fees, and what you need to watch out for as a foreign buyer or seller.

The Three Types of Real Estate Agency Contracts in Japan

Japan's real estate system is governed by the Real Estate Transaction Law (宅地建物取引業法), which defines three types of mediation contracts. Each type determines how many agents can represent your property, how quickly listings must appear on Japan's national property database (REINS), and how often agents must report to you.

Understanding these differences will help you make an informed decision about which contract type is right for your situation.

General Mediation Contract (一般媒介契約 / Ippan Baikai Keiyaku)

The general mediation contract is the most flexible option available in Japan. Under this arrangement, a property seller can engage multiple real estate agencies simultaneously to market and sell the same property.

Key characteristics:

• Multiple agents can represent the property at the same time
• The seller retains the right to find their own buyer independently
• No obligation for agents to register the property on REINS (Japan's MLS equivalent)
• No statutory reporting requirement to the seller
• No legal time limit on the contract; automatic renewal is permitted
• The seller may or may not be required to disclose other agents' names (depending on whether it is a "明示型" disclosed or "非明示型" undisclosed general contract)

While this sounds appealing — more agents means more exposure — in practice, general contracts are rarely favoured by agents in Japan. Because multiple agencies are competing to sell the same property with no guaranteed commission, most agents are reluctant to invest heavily in advertising or marketing. The result is often listings with minimal information, no interior photos, or inconsistent pricing across different platforms.

General contracts work best for high-demand properties in popular areas where agents are confident of a quick sale, or for sellers who want maximum exposure without committing to a single agency. For foreigners unfamiliar with the Japanese market, however, this contract type can lead to confusion when the same property appears on multiple websites with different prices or incomplete details.

For broader context on how the Japanese property market works, see our guide to the step-by-step home buying process in Japan.

Exclusive Mediation Contract (専任媒介契約 / Sennin Baikai Keiyaku)

The exclusive mediation contract is one of the most commonly used contract types in Japan. It strikes a balance between giving one agent the motivation to work hard for you while preserving some flexibility for the seller.

Key characteristics:

• Only one real estate agency may represent the property
• The seller retains the right to find their own buyer without paying commission
• The agent must register the property on REINS within 7 business days of signing
• The agent must report progress to the seller at minimum once every 14 days (in writing)
• Maximum contract duration: 3 months — cannot be automatically renewed
• The seller must actively request renewal if they wish to continue with the same agent

Because only one agent holds the contract, that agent has a strong incentive to actively market the property. They know that if they find the buyer, they collect the seller-side commission. If another agent finds the buyer through REINS, the listing agent still receives their commission while the buyer's agent collects their own fee.

One important nuance: in the first seven business days after signing, the property has not yet been registered on REINS. During this window, the property is only visible to the agent's own client network — a factor to keep in mind if you want immediate broad exposure.

For more detail on the legal framework surrounding property purchases, visit Real Estate Japan's guide to broker agreements.

Fully Exclusive Mediation Contract (専属専任媒介契約 / Senzoku Sennin Baikai Keiyaku)

The fully exclusive mediation contract is the most restrictive option and offers the highest level of agent commitment. Under this contract, a single agent has complete control over the sale process.

Key characteristics:

• Only one agency may represent the property
• The seller is prohibited from finding their own buyer independently
• Even if the seller personally introduces a buyer (such as a friend or family member), the transaction must still go through the contracted agent — commission is unavoidable
• The agent must register the property on REINS within 5 business days (stricter than exclusive)
• The agent must report progress to the seller at minimum once per week (the highest reporting frequency)
• Maximum contract duration: 3 months; no auto-renewal

Because the agent is guaranteed to receive commission regardless of how the buyer is found, they have the strongest possible incentive to invest in professional photography, advertising, and active sales activity. Weekly reporting also means sellers receive the most up-to-date feedback on market interest.

However, this contract type also carries the highest risk of a problematic practice known as "enclosure" (囲い込み / kakoikomi) — see the warning section below.

Learn more about working with real estate agents in Japan at REthink Tokyo's guide to property listings.

Real Estate Commission Fees in Japan

Regardless of which contract type you choose, commission fees in Japan are regulated by law. The standard statutory maximum fees are:

For example, on a ¥50 million property, the maximum commission would be ¥1,560,000 + tax (3% × ¥50M + ¥60,000).

Important 2024 Update — Vacant House Exception: As of July 2024, Japan introduced a new commission structure for vacant homes (空き家 / akiya) and vacant land priced at ¥8 million or under. Under this amendment:

• The maximum commission is ¥330,000 + consumption tax
• This fee can be collected from both buyer and seller (previously only one side could be charged the full fee)
• The purpose is to incentivize agents to handle Japan's growing vacant property crisis

Japan had approximately 9 million vacant houses as of 2023, representing 13.8% of total housing stock. This new law is a direct response to that crisis. For more details on akiya opportunities, see our guide on rural and countryside properties in Japan for foreigners.

Warning: Enclosure Risk (囲い込み / Kakoikomi)

One of the most important things for foreign buyers and sellers to understand is the risk of "enclosure" — a practice where an unethical agent intentionally prevents other agents' buyers from viewing or purchasing a property in order to earn commission from both the buyer and seller sides.

Here is how it works:

• An agent holds an exclusive or fully exclusive contract on a property
• Instead of cooperating with other agents who have interested buyers, the agent makes the property unavailable, claims it is "under review," or fails to list it properly on REINS
• By blocking outside buyers, the agent eventually closes the deal with their own buyer client, earning commission from both sides (double commission)

The legal maximum commission is approximately 3% from each side, so on a ¥50M property, double-dipping yields approximately ¥3.12M instead of ¥1.56M.

How to protect yourself:

• Ask specifically whether the property is registered on REINS and verify the registration number
• Request copies of the REINS registration confirmation
• Work with a buyer's agent who has no relationship with the listing agent
• Seek legal advice if you suspect your agent is withholding information

For a deeper dive into this topic, Find Hokkaido Agents provides an excellent breakdown of mediation agreements and dual-agency risks.

Which Contract Type Should You Choose?

If you are a buyer, the contract type is primarily the seller's decision — but understanding it helps you know how the property is being marketed and whether you are dealing with the listing agent directly.

If you are a foreign seller in Japan, here is a practical guide:

For foreign sellers, the exclusive mediation contract (専任媒介) is generally recommended as a starting point. It balances strong agent motivation with the flexibility to find your own buyer if needed, while keeping reporting requirements reasonable (every two weeks).

For more information on hidden fees and costs you should budget for when dealing with Japanese real estate agents, see our guide to hidden costs and fees when buying property in Japan.

Japan's REINS System: The National Property Database

Understanding REINS (Real Estate Information Network System / レインズ) is crucial when evaluating any real estate contract. REINS is Japan's official national property listing database, operated under the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

Key facts about REINS:

• All real estate agents licensed in Japan are required to register their exclusive contract properties
• Agents from any licensed brokerage can search and show properties listed on REINS
• REINS is not publicly accessible — only licensed agents can view it
• Registration deadlines are legally enforced: 7 days for sennin baikai, 5 days for senzoku sennin baikai
• Properties under general contracts have no REINS registration obligation

When an agent registers a property on REINS within the required timeframe, it effectively becomes accessible to over 1.18 million registered real estate transaction agents across Japan (as of FY2023). This is why exclusive contracts, despite restricting you to one agent, can still result in broad market exposure.

For context on navigating Japanese real estate procedures as a foreigner, Living in Nihon and For Work in Japan offer helpful resources on life and property in Japan.

Agent Types: Mediation vs. Direct Agency

One final distinction worth understanding is the difference between an agent (代理 / dairi) and an intermediary (媒介 / baikai):

• Intermediary (媒介): The agent facilitates and introduces parties but cannot legally bind the transaction. This is the most common form used in Japanese residential real estate.
• Agent (代理): The agent has full legal authority to conclude a binding sales agreement on the client's behalf under the Japanese Civil Code. Less common in residential transactions.

Most residential real estate in Japan uses the intermediary (baikai) model, which is why the three contract types are all called "baikai keiyaku" (mediation contracts) rather than "dairi keiyaku" (agency contracts).

For further guidance on purchasing property in Japan, the team at Gaijin Buy House specializes in helping foreigners navigate the Japanese real estate market.

Key Takeaways

Understanding Japan's real estate contract system is an essential step toward making a successful property transaction. Here are the most important points to remember:

1. Three contract types exist: General (multiple agents), Exclusive (one agent, seller can find own buyer), and Fully Exclusive (one agent, seller cannot find own buyer)
2. Exclusive contracts are time-limited: Maximum 3 months, no auto-renewal, so you can switch agents if dissatisfied
3. REINS registration is mandatory for exclusive contracts (7 days) and fully exclusive contracts (5 days)
4. Enclosure risk is real: Always verify REINS registration and consider working with an independent buyer's agent
5. Commission fees are regulated by law: Maximum 3% + ¥60,000 + tax for properties over ¥4 million
6. 2024 reform benefits akiya buyers and sellers: Special commission rules now apply to vacant homes under ¥8 million

For a complete overview of the Japanese property purchase process, start with our complete guide to buying property in Japan as a foreigner.