Do you have any of these concerns?
- ・The family home inherited from parents. Siblings are divided between those who want to sell and those who do not, and discussions are at a standstill.
- ・I do not know where to begin.
- ・I have heard that "it is better not to sell now," but is that really true?
With inherited real estate, whether you sell, rent, keep as-is, or have it purchased will significantly affect both your net proceeds and family relationships. Here, SIMCITY explains how we approach the decision and how we can assist you.
What SIMCITY does first
- ・Property investigation: We review the registration information to clarify who holds what share of ownership.
- ・Family composition interview: We ask who is involved and what their wishes are.
Based on this, we do not favor either side but first organize the options in general terms. Inheritance involves emotions. We believe that providing objective information from a neutral standpoint is ultimately the most effective approach.
Four paths for inherited real estate
*Timeline, costs, and taxes vary depending on the property, your situation, and market conditions. Tax amounts change according to regulations, so specific figures will be provided by a tax accountant.
The core of SIMCITY's judgment
- ・For real estate, "location comes first," above all else. Even with the same age of construction, location determines whether to sell, rent, or keep.
- ・The decision differs greatly depending on whether it is for "residential use" or "investment."We first clarify whether there is a possibility you will live there yourself or whether you are evaluating it for income.
- ・Regarding the idea that "it is better not to sell now" — one key factor is whether you can afford to continue paying property tax and maintenance costs during that time. If you can, "waiting" is an option. If you cannot, waiting may actually reduce your net proceeds.
*However, there are tax provisions with sale deadlines for inheritance (discussed below). When deciding to wait, please consult a tax accountant to ensure you do not lose out due to deadlines.
When siblings or relatives disagree
Disagreement between "want to sell" and "do not want to sell" is the most common consultation we receive regarding inheritance. SIMCITY organizes the options from the perspective of real estate sale and utilization, considering whether mutual compromise or concession seems possible, while taking into account the age and maintenance condition of the building and whether the wishes are short-term or long-term. If the matter escalates to emotional or legal disputes, we refer you to specialists such as our advisory attorneys.
(* If the property remains under joint ownership or unregistered, the sale cannot proceed. We confirm this at the outset.)
About costs and timelines (we tell you honestly)
- ・Brokerage fee: The upper limit is set by law (Real Estate Brokerage Act). For sale prices exceeding 4 million yen, the upper limit is "sale price × 3% + 60,000 yen (plus consumption tax)."
- ・Vacant house/vacant land provision (fees): For sale prices of 8 million yen or less, a special provision may apply that raises the brokerage fee upper limit to 330,000 yen (tax included), taking into account costs such as on-site surveys (from July 2024 / with prior explanation and agreement).
- ・Easily overlooked costs: If a mortgage remains on the property, early repayment fees vary greatly depending on the financial institution, loan type, and contract (sometimes free, sometimes fees or settlement charges based on the balance). Be sure to confirm the contract terms with your lender. Other costs include stamp duty, mortgage cancellation fees, and judicial scrivener fees.
- ・Estimated timeline: From consultation to completion of sale, the guideline is approximately 2 months or more (varies depending on the property, your situation, and market conditions).
Tax provisions you should know about for inheritance
For the sale of inherited real estate, there are provisions that can reduce the tax burden if certain conditions are met. All have deadlines and requirements, and in some cases you must choose one or the other. Eligibility and amounts vary depending on individual circumstances, so details and applicability will be explained by a tax accountant.
- ・Special deduction for selling an inherited vacant house (up to 30 million yen): If certain requirements are met, up to 30 million yen (or up to 20 million yen per heir if there are three or more heirs) can be deducted from the sale proceeds. There are sale deadlines (by December 31 of the year that includes the third anniversary of the date inheritance began) and an application deadline for the provision itself (currently, sales by December 31, 2027 are eligible.
- ・Addition to acquisition cost for property on which inheritance tax was paid: If a person who paid inheritance tax sells the property within a certain period (by the day three years after the day following the inheritance tax filing deadline), part of the inheritance tax paid can be added to the "acquisition cost" at the time of sale. Because there is an inheritance tax filing deadline, we recommend early consideration.
*Subject to change due to tax reforms), as well as requirements regarding the construction date of the building.
Inherited real estate requires "registration"
From April 2024, those who inherit real estate are legally required to apply for inheritance registration (change of title) within three years from the date they learned of the acquisition through inheritance. Failure to complete the procedure without justifiable reason may result in a fine (up to 100,000 yen). Even if you "do not know where to begin," that is fine. You can start simply by confirming the property in question and the heirs. For the registration procedure, we will introduce a partner judicial scrivener to proceed smoothly.
(*Real estate inherited before March 2024 is also subject to this requirement, with registration required by the end of March 2027.)
Before leaving a vacant house "as-is"
If a vacant house is left unmanaged for a long time, depending on its condition, it may be subject to guidance or recommendations from the municipality as a "specified vacant house" or "poorly managed vacant house" (Special Measures Act on Promotion of Countermeasures for Vacant Houses). Land that receives a recommendation may lose eligibility for the "residential land tax reduction" that reduces property tax, potentially resulting in higher property tax. Even if you are at the stage where you "cannot decide yet," that is fine. We will assist you in organizing your options together, from sale and utilization to interim management.
What SIMCITY can help with
- ・Consultation and appraisal are free of charge.
- ・We also offer direct purchase by our company. Compared to brokered sales, we aim for early cash conversion (varies depending on the property and conditions).
- ・Inheritance may involve specialized fields beyond real estate, such as tax, debt, and registration. SIMCITY handles sale brokerage and purchase of real estate and collaborates with advisory attorneys, advisory tax accountants, and partner judicial scriveners in different fields. We can introduce these specialists as needed (engagement with specialists is your own contract).
- ・We have extensive experience assisting with sales not only in the Tokyo metropolitan area but also in properties across Japan (please consult individually regarding availability).
(*For distant locations, we may separately charge actual expenses such as transportation costs. Please consult in advance.)
We do not receive referral fees when introducing specialists.
Frequently asked questions
Q. Siblings disagree and discussions are not progressing.
A. We first confirm ownership shares through registration information and ask each family member about their wishes. Based on that, we organize the options from a real estate perspective using factors such as the age of the building and location, and present proposals. If the matter becomes a legal dispute, we will introduce specialists such as advisory attorneys.
Q. By when must I register inherited real estate?
A. From April 2024, inheritance registration within three years from the date you learned of the acquisition through inheritance became mandatory. For inheritances before March 2024, the deadline is the end of March 2027. We will introduce a partner judicial scrivener for the procedure.
Q. I heard that "it is better not to sell now." Is that true?
A. If you can afford to continue paying maintenance costs, "waiting" is an option. However, there are tax provisions with sale deadlines for inheritance, and waiting may cause you to miss out on provisions, reducing your net proceeds. Please confirm with a tax accountant.
Q. Are there tax provisions for selling an inherited vacant house?
A. If conditions are met, provisions such as the "30 million yen special deduction for selling a vacant house" are available. There are deadlines and requirements, and it may involve choosing between provisions, so a tax accountant will explain eligibility.
The most effective measure to avoid regret over inheritance
In fact, the best measure for inheritance is "before inheritance occurs."
While your parents are still healthy, discuss the division with your family and leave their intentions in the form of a will
— this greatly helps reduce future disputes and procedural burdens. (The Ministry of Justice also states that wills help prevent inheritance-related disputes.)
We understand that "it is difficult to bring up." Still, rather than leaving your children in a "difficult situation," we believe that facing it together as a family now, even if it feels somewhat heavy, is ultimately the kindest choice.
There is a deadline for inheritance tax filing and payment (10 months from the day following the date of death), and the deadline does not extend even if the division (estate division) is not decided. If the division is not completed in time, provisions that reduce the burden may not be initially available, increasing the burden on the family.
That is why those with assets should learn and prepare early.
SIMCITY, led by our representative, will do everything possible to assist not only with sale consultations but also with such "advance" preparations.
Please feel free to contact us first
"What about my case?"
— The answer varies case by case. Consultation and appraisal are free of charge (for distant locations, we may charge actual expenses such as transportation costs).
Please first let us know your current situation.
Last updated: August 12, 2026
Supervised by: Representative Director / Licensed Real Estate Transaction Agent Hiroyuki Konuki (Real Estate Brokerage Business Tokyo Governor (2) No. 101645)<