Ministry of Housing and Urban-rural Development, Circular on the Issues Relevant to Further Strengthening the Regulation of the Real Property Market and Improving the System for Pre-sale of Commodity Residential Premises
住房和城乡建设部关于进一步加强房地产市场监管完善商品住房预售制度有关问题的通知
May 13, 2010 | BY
clpstaff &clp articles &Property developers required to file pre-sale price changes.
Issued: April 13 2010
Main contents: The Circular states that the regulation of pre-sale of commodity residential premises shall be strengthened. In case of commodity residential premises projects for which the pre-sale permit has not yet been obtained, real property developers may not pre-sell such premises, collect, or collect in a disguised manner, deposits, reservation fees or other such fees from purchasers in the form of subscription, reservation, lot drawing or issue of VIP cards, or participate in any exhibition. Where a real property developer has obtained the pre-sale permit for its commodity residential premises project, it shall publicise all premises available for sale and the prices of each unit at one time within 10 days, and shall sell the premises to the public with clearly marked prices as filed. Real property developers may not sell the premises reserved for self use to the public before the initial registration of the housing ownership, pre-sell the premises through refund of the sales amount to the purchaser or guarantee of lease of the property after sales, or conduct sham transactions (Article 1).
Acts such as failure to sell the premises to the public within the specified time limit or failure to sell all premises available for sale to the public, after obtaining the pre-sale permit, as well as short supply of real property created manually through deliberate sale of property at abnormally high prices or conclusion of false purchase and sales contracts for commodity residential premises shall be seriously investigated and dealt with (Article 2).
The minimum unit permitted for pre-sale shall be one building. Pre-sale permits may not be made for floors or units (Article 7). A pre-sale proposal for commodity residential premises shall include the basic details of the project, progress of construction, number of units for pre-sale, estimated sizes and details of division, specific coverage of public areas and facilities, pre-sale prices and the range of changes, monitoring of funds from pre-sale and details of the actual receipt thereof, the entities that undertake the liability for the premises quality, the form of undertaking the liability, and the energy consumption index and energy conservation measures of the premises. Any changes to the main contents of the pre-sale proposal shall be reported to the competent department for record filing, and a public announcement shall be made thereon (Article 8).
All funds from the pre-sale of commodity residential premises shall be deposited into the accounts that are monitored by the regulatory authorities to ensure that such funds are used for construction of the commodity residential premises (Article 9). A real name system for purchase of commodity residential premises shall be stringently implemented. After subscription for property, the name of the purchaser may not be amended without authorisation. Local authorities shall regulate reservations for commodity residential premises, and issue provisions to restrict the number of reservations for premises available for sale. Where a purchaser that has reserved commodity residential premises fails to conclude a pre-sales contract within the stipulated time limit, the reservation shall be removed and the premises in question may be sold to the public. Where the parties have concluded a purchase and sales contract and filed an online record, and both parties agree to terminate the contract upon consultations, the said parties shall submit an application and state the reasons therefor and the returned premises shall be sold to the public (Article 10).
Related legislation: Circular on Promoting the Steady and Healthy Development of the Real Property Market, Jan 7 2010, CLP 2010 No.3 p.31
clp reference:4110/10.04.13promulgated:2010-04-13This premium content is reserved for
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