Beijing Municipality, Tentative Measures for Monitoring the Proceeds from Pre-sale of Commodity Premises

Promulgated: October 22 2010
Effective: December 1 2010

Applicability: The phrase “proceeds from pre-sale of commodity premises” refers to the total sum for purchase of commodity premises paid by the purchaser according to the contract for the pre-sale of commodity premises, including the deposit, down payment and mortgage loan (Article 5).

Main contents: Proceeds from the pre-sale of commodity premises shall be deposited in full into a bank account dedicated to the monitoring of such proceeds (Dedicated Account). Proceeds for project construction shall be subject to major monitoring to ensure that the pre-sale proceeds are used for construction in priority (Article 6). Before the preliminary registration is completed and the criteria for the registration of title transfer by the purchaser alone are fulfilled, the funds in the dedicated account may not be less than 5% of the project construction cost (Article 9). Real property developers shall designate the monitoring bank for their project (Article 10). The purchaser of commodity premises shall directly deposit the purchase sum into the Dedicated Account at the time of pre-sale. Real property developers may not collect the funds directly (Article 16). Where a monitoring bank discovers that proceeds from the pre-sale of commodity premises have not been deposited into the Dedicated Account, it shall notify the department in charge of housing and urban-rural development at the district or county level (Article 17).