Circular on Issues Concerning Further Strengthening the Supervision and Administration of the Real Estate Market and Improving the Pre-Sale System of Commodity Housing
Circular on Issues Concerning Further Strengthening the Supervision and Administration of the Real Estate Market and Improving the Pre-Sale System of Commodity Housing
Circular on Issues Concerning Further Strengthening the Supervision and Administration of the Real Estate Market and Improving the Pre-Sale System of Commodity Housing
Jian Fang [2010] No. 53
April 13, 2010
To housing and urban and rural development departments of each province and autonomous region, construction commissions of each municipality directly under the Central Government and construction bureaus of Xinjiang Production and Construction Corps,
For the purposes of implementing requirements put forward in the Circular of the General Office of the State Council on Promoting Steady and Healthy Development of the Real Estate Market (Guo Ban Fa [2010] No. 4), further strengthening supervision and administration of the real estate market, improving pre-sale systems of commodity housing, rectifying and regulating the order in the real estate market and protecting legal rights and interest of housing consumers, relevant issues are hereby notified as follows:
Article 1 Further strengthening supervision and administration of the real estate market
1. Strengthening supervision and administration of the pre-sale of commodity housing. For any commodity housing project which has not obtained the pre-sale license, the real estate developer responsible for such project may not carry out any pre-sale, or collect deposit or any advance payment from buyers in forms of subscription, preordination, or queuing for numbers or issuance of VIP cards, or collect in a disguised manner, or participate in any sales exhibitions. For any commodity housing project which has obtained the pre-sale license, the real estate developer shall, within 10 days, publicize all licensed housing and price of each set, and shall sell at the publicly announced price that is strictly in line with the declared one. No real estate developer may sell reserved housing to the outside before the ownership of the housing is initially registered, pre-sell commodity housing by means of returning cost or undertaking rent after sale, or conduct any false transaction.
2. Strictly investigating such illegal practices as hoarding and cornering. More efforts shall be made to investigate such illegal practices as hoarding and cornering, artificially forcing up prices, etc. Such practices as failing to sell to the market within the prescribed time limit after obtaining the pre-sale license, or failure to make available all licensed housing, and selling housing at an excessively high price or creating false short supply of housing through signing false sale contracts of commodity housing shall be strictly investigated for punishment.
3. Strengthening supervision and administration of real estate sale agency and real estate brokerage. If agent sale of commodity housing is employed, only real estate brokers that have gone through filing formalities with competent real estate authorities shall be entrusted. Real estate brokerage institutions shall properly publicize their brokerage service items, service contents and service fee rates; they shall explain additional outreach service, if any, to the clients in advance and shall make clear stipulation in the contract for commission, and they may not decompose charging items or forcibly collect drafting fees or bank installment service fees and other fees. Real estate brokerage institutions and employees thereof shall refrain from speculating in commodity housing quota numbers, seeking profit in the form of price gap when they provide agency service, conducting any illegal transaction by signing a "false double-barreled contract (which is a contract consisting a contract which records the genuine intentions of the parties thereto and a "shadow" contract that serves only to deal with inspections by the regulators.)", publicizing false information and un-verified information, and making false atmosphere of brisk sale by insider subscription, hiring persons to queuing for purchase, etc.
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