Consultation
Step to a Successful Sale
Step1.Consultation
(A) Selling Costs
When you sell your property, similar to when you purchase a property, you will need to budget for "other expenses." These expenses include, but are not limited to: taxes, brokerage commission and document fees, etc. The proceeds that you will receive at the completion of the transaction is the balance after you pay "other expenses" from the sale price.
Sales price - Other Expenses = Proceeds
(B) Breakdown of Other Expenses
The following is a typical list of "other expenses."
| Brokerage Commission | The amount of the brokerage commission is determined and stipulated in the brokerage service agreement between the seller and Mitsui Real Plan Center. The total amount will include both general and regional sales taxes. |
|---|---|
| Revenue Stamp Fee | Revenue stamps are required to be affixed to The Agreement for Sale and Purchase of Real Estate. |
| Income Tax and Residents Tax | If you realize a capital gain by selling a property, you will be required to pay capital gains tax and residents tax. If the property concerned has been your main residence, a special tax exemption may apply. |
| Loan Fees | When the property that you have sold has an unpaid mortgage balance, you will be required to pay document fees. These fees are typically charged to remove the mortgage lender's lien rights to the property. Additional loan fees include handling service fee charged by a judicial scrivener and a loan closing fee. |
| Other Costs | Cost of relocation and moving out. In some cases, land survey fees and/or building demolition costs may also be incurred. |
(C) Capital Gains Tax
If you realize a capital gain in selling property, an income tax and a residents tax will be levied on the capital gain amount. In case you sell your own residence, however, a special tax exemption up to 30,000,000 yen may be applicable. In addition, depending on the length of the ownership period, you may be able to elect a special lower tax rate.
You are welcome to inquire further with Mitsui Real Plan advisors.
