Consumer Council urges caution when buying mainland property

Buildings in Zhuhai

The Consumer Council has asked residents to inquire into and understand the relevant regulations in mainland China before choosing and buying properties there.
In a press release, the Council said that more Macau residents have chosen to purchase properties on the mainland due to the increasing interaction between both regions. Some property developers have also organized events to attract Macau residents to purchase their firsthand properties, including those that are incomplete or under construction.
The Consumer Council suggested that the mainland’s regulations on the sales of residential properties are “very strict”. There are various regulations that govern the sale of residential properties, including the Measures for Administration of Pre-sale of Residential Buildings, Regulations on the Development and Management of Urban Real Estate, and Measures for Administration of the Pre-sale of Urban Residential Buildings.
“According to the Measures for Administration of Pre-sale of Residential Buildings, the developer of the residential building should possess the authorization certificate of land use, construction planning permit, and is also required to confirm the construction process, and completion date, as well as the date of payment for the residential building. Meanwhile, the permit for the pre-sale of residential buildings can only be applied when the capital invested has reached over 25 percent of the whole investment amount, and the proposal of the pre-sale project (including the floor plan of the building) is necessary for application. The developer can only initiate pre-sale activities when their permit is approved and acquired. If the building is intended for sale outside China, a pre-approved authorization is also required, and the developer must state clearly the ratio of out-
of-border sale on their permit,” the Council’s release stated.
Moreover, it reminded residents that according to the Measures for Administration of Pre-sale of Residential Buildings, both the seller and buyer must sign a contract for the pre-sale of such property.
Registration should also be completed at the provincial department for real estate and land management within 30 days of signing the above mentioned contract.
The Council reiterated that consumers should make inquiries about the relevant regulations and check the information of the estate developer, prior to making any decisions concerning the purchase of properties in the mainland.  JPL