Ministry of Construction, Administration of Sale of Commodity Premises Measures

Promulgated: April 4 2001
Effective: June 1 2001
Interpreting authority: State Council administrative department in charge of construction
Applicability: The Measures apply to the sale and pre-sale of commodity premises and the administration of such sale and pre-sale (Articles 2 and 3).

Main contents: The Measures prescribe the conditions for sale of commodity premises and the main contents of the commodity premises purchase contract (Articles 7 and 16). According to the Measures, commodity premises shall be sold in whole units (Article 12). Price may be set per unit or on the basis of floor area, which consists of the floor area of the unit and the shared common area; the floor area of the unit and the shared common area shall be specified in the purchase contract regardless of the pricing basis (Article 18). The purchase contract shall stipulate how errors in measurements or floor area shall be handled and the Measures provide a method of handling such errors in the absence of such a provision in the contract (Articles 19 and 20). Upon delivery,purchased premises shall conform with the display unit if a display unit was shown at the time of the purchase, unless otherwise specified (Article 31). The warranty for commodity premises shall be set out in the purchase contract and the warranty period shall not be shorter than the minimum warranty period prescribed in the Commodity Residential Premises Implementation of the System of Quality Certificates and User's Manual for Residential Premises Provisions (Article 33). The Measures permit provincial governments to formulate their own implementing rules (Article 46).
Related legislation: PRC, Administration of Urban Real Property Law, Jul 5 1994, CLP 1994 No.8 p23; Administration of Urban Real Property Development and Business Regulations, Jul 20 1998, CLP 1998 No.7 p53; Administration of the Pre-sale of Urban Commodity Buildings Measures, Nov 15 1994, CLP 1995 No.1 p41; PRC, Security Law, Jun 30 1995, CLP 1995 No.6 p21; Administration of Urban Real Property Mortgage Measures, May 9 1997, CLP 1997 No.8 p28; PRC, Advertising Law, Oct 27 1994, CLP 1994 No.10 p19; Release of Real Property Advertisements Tentative Provisions; Commodity Premises Sales Contract Model Text, Sep 13 2000, CLP 2000 No.9 p10 and Commodity Residential Premises Implementation of the System of Quality Certificates and User's Manual for Residential Premises Provisions, May 12 1998