What is the real estate business? A license is required to operate a real estate business.

Updated: July 2025, 9

The real estate trading industry is an industry that deals with the buying and selling of land and buildings.
To carry out this business, a license under the Real Estate Transaction Business Law is required.
To ensure the safety of real estate transactions, unlicensed businesses are not allowed to enter this business.
This article provides a clear explanation of the licenses required to operate a real estate transaction business, as well as the application procedures and requirements.

Definition of the real estate business (real estate business)

The real estate business (real estate brokerage business) refers to the business of carrying out the following activities with respect to land or buildings.
① “Acts of buying, selling or exchanging oneself”
② "Acts of acting as an agent or intermediary when another person buys, sells, exchanges, or rents"

*However, "renting own property" is excluded.

(Quoted from "Tokyo Metropolitan Real Estate Transaction Business License Application Guide")

* "Conducting as a business" refers to a state in which the activity is conducted to an extent that can be considered, according to social standards, as "the conduct of a profitable business."
The judgment will be made comprehensively based on criteria such as whether the transaction is aimed at the general public (target of transaction), whether it is for profit (purpose of transaction), whether it was acquired for the purpose of resale (acquisition history), and whether the transaction is repeated and continuous (repetition and continuity).

*The difference between "buying and selling," "agency," and "mediation": The key points are the "source of money" and "name"
``Buy and sell'': Conducting transactions in ``your own name'' with ``your own money.''
"Intermediary": To make an effort to close a transaction by presenting "someone else's name" to the other party using "someone else's money." An intermediary does not have the authority to determine the terms of the transaction, etc.
"Agent": To make an effort to close a transaction by showing the other party "someone else's name" with "someone else's money." An agent also has the authority to determine the terms of the transaction.

Differences between real estate and real estate businesses

Strictly speaking, the real estate business and the real estate industry are different.

Both are related to the Real Estate Transactions Act.

As mentioned above, real estate agents handle transactions related to the sale, purchase, exchange, and lease of land and buildings in accordance with the Real Estate Brokerage Business Act.
On the other hand, the real estate industry includes a wide range of real estate-related tasks, such as real estate brokerage, apartment management, tenant relations, and supervision of property management companies.
Therefore, the real estate business can be considered a part of the real estate industry.

About the Real Estate Transaction Business License

Regardless of whether you are an individual or a corporation, you will need a "real estate transaction license" to operate a real estate business.
For example, if you are a property owner who repeatedly engages in real estate transactions other than renting, you will need a license.

License classification

Real estate transaction business licenses are classified into minister's licenses and governor's licenses.

A ministerial license is a license that is applied for by a company that plans to set up offices in two or more prefectures, and the application is submitted to the Minister of Land, Infrastructure, Transport and Tourism.

A prefectural governor's license is a license that can be applied for by a company that only has one real estate office, and applications are submitted to the governor of each prefecture.

License validity period

The license is valid for 5 years, and if you wish to continue operating after the validity period, you must renew the license between 90 and 30 days before the expiration date.

If there has been a change in the company structure, officers, etc. since you applied for your license, you will need to notify the change each time.

Requirements for a real estate license

When applying for a new license, you must meet the following requirements.

① Office establishment

In order to conduct a real estate transaction business, it is necessary to establish an office such as a head office or a branch office.
An office must be a premises in which business can be conducted on a continuous basis and must be separate from any other business or private residence.
You will not be able to obtain a license if your business is mixed with another corporate or personal office, or with your residence.

② Appointment of full-time real estate agents (real estate brokers)

A real estate agent (real estate broker) is someone who has passed the real estate agent qualification examination, registered as a real estate agent, and been issued a real estate agent certificate.
The validity period of the real estate license is five years.
When operating a real estate business, it is necessary to appoint at least one full-time licensed real estate agent for every five employees.

In addition, real estate agents are required to be "full-time" at each office.
"Full-time" refers to a person who works full-time at an office and is exclusively engaged in the real estate business, and is therefore not recognized as a representative director, full-time officer, or company employee of another corporation.
As a general rule, full-time real estate agents are prohibited from working concurrently with other businesses.
However, there is no significant difference in the work of a full-time real estate agent and a non-full-time real estate agent.

③Permanent presence of representatives, etc.

As a general rule, the representative applying for a license must be permanently present at the office.
However, if the exercise of representative authority is delegated to an employee specified by government ordinance, the obligation to be permanently present will be waived.

④Does not meet the disqualification requirements

An application cannot be made if the individual applicant or executive officer of the corporation falls under the disqualification requirements.

⑤ Deposit a business guarantee deposit and join a guarantee association

If you pass the examination and are granted a license, you will be issued a real estate license and can officially start your real estate business by either depositing a business guarantee bond or joining a guarantee association and paying your share of the repayment guarantee bond.

• When making a business guarantee deposit, 1000 million yen must be deposited with the deposit office if the head office is a company, and 500 million yen if the branch office is a company.
• To join the guarantee association, you will need to pay a repayment guarantee contribution of 60 yen at the head office and 30 yen at a branch office.

*It is common to join a guarantee association, but it takes time to join, so you will need to make systematic preparations in advance.
*The guarantee association to join is either the Real Estate Transaction Guarantee Association or the Real Estate Guarantee Association.

Renewal, change and license transfer applications

Even after obtaining a real estate license, you may be required to complete the following procedures:

Application for renewal license

A real estate license is valid for 5 years.
If you wish to renew your real estate license, you will need to complete the renewal procedure.

You must apply for license renewal between 90 and 30 days before the license expiration date. 　
If there are any changes, you must first submit a change notification before proceeding with the renewal process, so you need to confirm that there are no changes to your registration details.

Change notification

If any of the following changes occur to a licensed real estate agent, they must submit a notification of the change to the Minister of Land, Infrastructure, Transport and Tourism or the prefectural governor within 30 days.

• Company name
• main office
• Representative
• Board Member
• Employees specified by Cabinet Order
• Dedicated trading manager
• Establishment, abolition, relocation, and name of secondary office

Application for license change

① When moving the office from the prefecture where the current office is located to another prefecture

Prefectural governor's license → Other prefectural governor's license

② When establishing an office in another prefecture in addition to the prefecture where the current office is located

Prefectural Governor's License → Minister of Land, Infrastructure, Transport and Tourism's License

③ If you currently have offices in two prefectures, but your office is located only in one prefecture.

License from the Minister of Land, Infrastructure, Transport and Tourism → License from the Prefectural Governor

For real estate business inquiries, please contact Support Administrative Scrivener Corporation

Our company is based in Tokyo, Nagoya, and Osaka, and supports companies nationwide with real estate license applications and deadline management.

A real estate license is one in which one company has many license holders.
Not only do licenses have to be renewed usually once every five years, but applications for changes in employee assignments due to personnel transfers are also required, and deadline management and smooth procedures that are painless to employees are required.
You can use our company as an outsourcing agency for obtaining the various certificates required for applications, creating application documents, and managing deadlines using a database.

The first consultation is free, so please contact us.

Frequently Asked Questions (Q&A)

How long is the validity period of a real estate transaction license?

The validity period is 5 years.

What is a full-time real estate agent?

"Full-time" means working full-time at an office and engaged exclusively in the real estate business. Being the representative director, full-time officer, or company employee of another corporation does not qualify as full-time. Also, having a residence in a place where commuting is not possible is not considered full-time.

How many full-time real estate agents do we need?

In the real estate transaction industry, offices are required to have at least a certain number of dedicated transaction managers. Specifically, it is necessary to appoint at least one full-time trading manager for every five people.

Can I become a full-time real estate agent at the corporation for which I currently serve as an auditor?

According to the provisions of the Companies Act, auditors cannot hold positions that involve business execution, and are not considered to be engaged in the real estate business (employees). On the other hand, full-time real estate agents are defined as "those who work full-time at an office that operates a real estate business and who are exclusively engaged in the real estate business," and are the second most important post in the business after directors. Therefore, holding both positions simultaneously is not permitted.

I am also an officer of another corporation. Can I still apply for a license?

An individual or corporate representative cannot apply for a license unless he/she is able to exercise his/her right of representation at all times. If you are an officer of another corporation, you must be part-time. However, in this case, this problem can be resolved by appointing a government servant.

I would like to use part of my residence as an office. Is this possible?

It is possible to use a part of a family's residence as an office. In that case, you will need to present a written usage agreement or rental agreement at the time of application.

Can a child inherit their parent's license?

Personal licenses are not subject to inheritance, so if your parent dies, your license will expire at that point. If you want to take over the real estate business, your child will need to apply for a new license and take over the parent's business after obtaining the license. Licenses cannot be transferred even if the company is a corporation.

Is there anything I should be careful about when using part of my home as an office?

It is necessary to enter the office without passing through the living area (bedroom, kitchen, etc.), and it is necessary to clearly indicate that it is an office by clearly separating the partitions. In addition, it is necessary to attach a floor plan or floor plan to confirm the office area.

Can I share the office space with other companies?

It is possible to have an office on the same floor or in the same room as another corporation. In that case, you will need to be able to enter the applicant company's office without passing through the other company's office, and you will need to clearly separate the applicants with fixed partitions or lockers, and clearly indicate which company belongs to which company.

What is a trust beneficiary interest?

When a real estate owner entrusts real estate to a trust bank, etc., it becomes a security called a beneficiary interest. Securitized beneficial interests will be bought and sold among investors as securities.

What is required to handle real estate properties with trust beneficiary interests?

When a real estate agent buys, sells, or brokers real estate that is a trust beneficiary interest, it is required to register with the Local Finance Bureau as a Type 2 Financial Instruments Business Operator. When registering as a financial instruments business operator, both corporations and sole proprietors can register.

Are the registration requirements for a Type II Financial Instruments Business the same as those for a real estate license?

When registering as a Type 2 Financial Instruments Transaction Business, there are requirements that are different from those for a real estate transaction business license, and it is necessary to prepare documents required for the financial industry, such as a business method statement.

When is ex-post notification required under the National Land Use Planning Act?

When a contract for land sales, etc. is concluded for land of a certain size or more, the party acquiring rights to the land, etc. (transferee) is required to submit a notification after the contract is concluded. Please note that if you fail to submit this notification, you may be subject to penalties.

Q: What is the procedure and deadline for submitting a post-notification?

Among the parties to the transaction, the person who has acquired the rights to the land must notify the municipal office where the land is located. The deadline for notification is within two weeks, including the date of the contract conclusion.Failure to report within two weeks or filing a false notification will result in imprisonment for up to six months or a fine of up to 2 million yen.

Is it necessary to deposit a business guarantee bond and join a guarantee association?

In order to obtain a license, it is necessary to deposit a business guarantee or join the Real Estate Industry Guarantee Association (payment of a business guarantee contribution). By paying the security deposit contribution, you will be issued with a real estate transaction license and can officially start your real estate transaction business.

How much does it cost to deposit a business guarantee and join a guarantee association?

When depositing a business guarantee deposit, the head office must deposit 1000 million yen, and the branch office must deposit 500 million yen. If you join a guarantee association, you will only have to pay 60 yen at the head office and 30 yen at the branch office, so it is common to join a guarantee association.

If I go out of business, will I get my security deposit back?

Business security deposits (deposits) or security contributions (association) can be recovered after closure. In the case of deposits, the deposited items will be checked and a notice will be published in the official gazette stating that the deposits will be recovered. After publishing the notice, a notice will be submitted to the prefectural government, and if no other guarantees are offered after a six-month grace period, a certificate will be issued, after which a claim can be made to the relevant Legal Affairs Bureau. If you are a member of an association, after notifying the association of your closure, you will also need to notify the association of your closure and request a return of your contributions. The association will carry out the same procedures as the deposits mentioned above in one go. Unpaid membership fees and handling fees may also be deducted from the refund.

How much does it cost to apply for a new license?

The fee for a prefectural governor's license is 33,000 yen, and the fee for a Minister of Land, Infrastructure, Transport and Tourism license is 90,000 yen.

After the application is accepted, how many days will it take to obtain the license/registration?

Approximately 5 weeks are required for both new and renewal applications, approximately 2 weeks for applications for replacement of real estate business licenses, and approximately 5 weeks for real estate agent registration. In addition to the above period, ministerial applications require an additional three to four weeks.

How long is the license validity period?

The license is valid for 5 years.

When should I apply for a renewed license?

You must apply for license renewal between 90 and 30 days before the expiration date of your license.

How much is the fee for license transfer and renewal applications?

The fee for a prefectural governor's license is 33,000 yen, and the fee for a Minister of Land, Infrastructure, Transport and Tourism license is 90,000 yen.

Do I need to go to the Ministry of Land, Infrastructure, Transport and Tourism, the Real Estate Transaction Industry Guarantee Association, and the Real Estate Guarantee Association myself?

That is not necessary. If you entrust us with the application, we will handle the application process on your behalf with the prefectural government or the Ministry of Land, Infrastructure, Transport and Tourism, as well as with the Real Estate Transaction Guarantee Association and the Real Estate Guarantee Association.

Is it necessary to submit a notification if I set up a temporary office?

If you plan to sign contracts etc. at a temporary office and appoint a full-time real estate agent, you will need to submit a notification at least 10 days before the start of business.

I am planning to establish a corporation and start a real estate business by filing a corporate application. From what stage can I apply for a real estate license?

If a corporation is applying for a real estate brokerage license, it can apply from the time it obtains a certified copy of its company register after the company is established. Please note that the company's purpose at the time of establishment must include the phrase "to engage in the real estate brokerage business." We can also provide support for company establishment, so please feel free to contact us.

The license renewal application period has passed, can I still renew my license?

If you wish to continue operating after the five-year period of validity of your real estate transaction license, you must apply for license renewal between 90 and 30 days before the expiration date of your license. . If an application for renewal is not submitted within this period, the license will, in principle, become invalid at the end of the license validity period. Some local governments may accept renewal applications before the license expiration date, but whether or not they will accept renewal applications after the renewal application period varies depending on the local government, so be sure to apply for renewal well in advance.

Please note that you cannot apply for renewal after the validity period has expired, and you will need to apply for a new license.

Is there anything else I need to be careful about when running my business other than complying with the law?

The following items, including change procedures, must be complied with:

　　 ・Issuance, carrying and presentation of employee certificate
　　・Preparation, preservation, and viewing of employee list
　　・Maintenance and preservation of business-related books
　　・Display of vendor ticket and remuneration ticket
　　・Carry and present your chief identification card

Is it possible to operate a real estate business only through a branch office without having an office at the head office?

The law stipulates that an office must be opened at the registered head office location, and in addition, a branch office or subsidiary office must be opened, so it is not possible to operate a real estate business solely through a branch office.