How to become a Real Estate Broker in Japan

Are you considering a career in real estate in Japan? If so, getting a real estate brokerage license would be beneficial. In this article, I will explain everything you need to know about becoming a real estate broker in Japan.

What is a real estate broker

In Japan, a real estate broker or “takkenshi”(宅建士) is a licensed professional who can broker the sale of land and property.

In 1958, the Japanese government created the real estate broker license to formalize the real estate industry. This license came with many legal restrictions on real estate sales to protect customers.

One of those restrictions was for a brokerage to have a certain number of employed real estate brokers to be eligible to engage in any kind of activity regarding sales of land and property (including running ads for property). On top of this, there are 3 things that only a licensed real estate broker can legally perform.

Conduct the official explanation of real estate transactions
sign the official explanation of the transaction
sign the contract of the transaction

Why become a real estate broker

Now that we know what a real estate broker is, you may be asking why you would personally want to become a real estate broker in Japan.

You want to work in real estate in Japan

The most obvious explanation of that value is that it is helpful in finding employment in the real estate industry. In Japan, it is not required for you to be a licensed broker to work for a real estate company and conduct any actions besides the 3 listed above, but it would be a huge plus in finding opportunities.

The requirement of having a certain number of real estate brokers does not specify the role, so no matter what position, having the license will help you get the role at a company that requires on-staff real estate brokers. Industries that require real estate brokers span beyond real estate including construction and finance.

You want to start a brokerage

As previously mentioned, a real estate brokerage requires having a certain number of licensed real estate brokers, and if you have such a license, you will be able start your own company to conduct real estate business.

unlocks side hustles

Beyond just getting a job and starting a business, the license also allows you to make a little money on the side.

As mentioned before, there are 3 things that can only be performed by a licensed real estate broker, and you do not have to be an employee to perform them. Because of that, many companies will pay real estate brokers to explain contracts and sign documents independent of actual employment. This gives the added flexibility of making a little money without committing to full-time employment for a company.

Allows for visa sponsorship

If you are a foreign resident of Japan who is considering what options you have for sponsorship of a visa, passing the examination allows a company to sponsor you as an employee even if you do not have a college degree.

steps to become a real estate broker

Now that you are sufficiently sold on becoming a real estate broker in Japan, let us look at the actual steps in getting it.

the real estate brokerage exam

In order to become a real estate broker, you first need to pass the real estate brokerage exam.

The exam is held once a year on the third Sunday of October. The application for the exam is in June and costs 8200￥. A requirement of registering is that you must have a Japanese address.

The exam is held only in Japanese, and the content of the exam is on laws related to the real estate industry.

The exam is considered fairly hard even for Japanese people, having a pass rate of 15% and an estimated required study time of about 300 hours.

The exam has 50 questions which are all multiple choice, and if you work in real estate already you get a handicap and don’t have to take the last 5 questions.

Register with the prefectural government

After passing the test, you will receive a notice in November. Now you need to actually register with the prefectural government that you took the test in. After registering with them, they will give you your license.

Don’t worry, even though you register with one prefecture, the license is valid in any prefecture.

Short course in practical business

To get your real estate broker license, it is required for you to have at least 2 years of experienct in industy. But even if you do not have the experience, you can sign up for a course that allows you to be eligible for licensing.

Feasibility for a foreigner

As I am writing this article in English, I assume most the people reading are not native Japanese speakers. This calls into question how feasible it would be for a non-native speaker of Japanese to pass this test. I am personally studying for the test despite being a native English speaker, and I do believe it is entirely possible.

The first caveat is that I believe you should attain a JLPT N1 level of Japanese before attempting, and expect to spend more than the suggested 300 hours studying. But in my opinion, I believe the act of studying Japanese actually provides you with a lot of tools for studying to be a real estate broker.

If you have any questions regarding real estate in Japan, or studying to become a real estate broker, feel free to reach out to me here