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

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).