State Administration for Industry and Commerce and Ministry of Construction, Further Strengthening the Administration of Real Property Advertisement Circular

Issued: March 25 2002

Main contents: The Circular requires all levels of industry and commerce administrations to carry out a comprehensive examination and screening of real property advertisements in the year 2002, particularly those distributed through the internet. The examination shall target the advertisements of such real property projects that are not developed in compliance with the required construction procedures or have not satisfied other prerequisite conditions for sale, and advertisements that contain falsehoods or exaggerations (Section One). Real property developers without a pre-sale permit for commodity premises shall not be allowed to advertise their projects in the name of "internal subscription" or "internal registration" (Section Two). No ranking or other comprehensive evaluation of real property shall be made in real property advertisements (Section Three). Representations and promises made in real property advertisements shall be included in the commodity premises purchase and sale contracts (Section Four). Real property developers that do not comply with the above provisions shall be ordered to make corrections. If they do not do so, they shall be exposed in the mass media and downgraded or deprived of qualifications in the annual inspection (Section Five).
Related legislation: PRC, Advertising Law, Oct 27 1994, CLP 1994 No. 9 p4 and Release of Real Property Advertisements Tentative Provisions, Feb 21 1997, CLP 1997 No.4 p4