Guangdong Province, Calculation of Premises Transaction Prices Tentative Provisions

Promulgated: October 10 2000
Effective: January 1 2001
Applicability: The Provisions are applicable to the calculation of prices in premises transactions (including transactions in commodity buildings and premises in the secondary or tertiary market) in Guangdong Province (Article 2). However, purchase contracts executed prior to the effective date of the Provisions are not affected (Article 11).

Main contents: According to the Provisions, in the presale of commodity buildings, price shall be determined on the basis of the floor area of a suite (a unit) or the entire floor, as the case may be (Article 4). The price so determined should include the cost of all common areas (Article 5). If the difference between the actual floor area upon delivery and the originally priced area is greater than 0.6% but less than or equal to 3%, the purchaser shall be given a refund or make up the shortfall; and if the difference is greater than 3%, the purchaser shall have the right to cancel the purchase and receive a full refund (Article 6). In transactions of newly built or pre-owned commodity buildings, prices shall be calculated on the basis of total purchase price and shall not be on the basis of floor areas (Article 7). The real property authority shall not certify a transaction if its price does not comply with the Provisions (Article 10).