Consumer Council warns about buying property in Zhuhai

Cranes operate at a residential construction site in the Gongbei district of Zhuhai

Faced with excessive prices in their hometown, many local residents resort to buying houses in mainland China, particularly in the neighboring city of Zhuhai. According to the Consumer Council (CC), more locals are resorting to that option and problems are arising from property sales, especially if the building is still in its project phase or under construction (pre-sales).
In a statement issued yesterday, the CC mentions that, many times, Macau residents are not well informed about the real estate regulations in mainland China and fall into some “traps.”
Following the establishment of an information exchange protocol between CC and the Consumer Council of Zhuhai City, the latter issued a warning note about the acquisition of properties in mainland China.
The warning, now divulged by the CC, stated that people should be aware of some of the exaggerations or misleading information that are contained in advertisements and promotional leaflets. It describes how sometimes promoters will indicate that the property is located close to banks, schools or hospitals, when that is not the case. The price tag put on the properties can be also misleading, since many times it refers only to the cheapest and smallest units.
Licensing is another matter of concern. The Zhuhai CC warning states that “consumers should ask for five licenses and two diplomas” before moving on with the acquisition. The diplomas include the permit to work as a real estate agent and their academic qualification diploma. The licenses include the “license to use national land” and the “license to sell houses under construction.”
The document continues on to mention that consumers should pay paramount attention to the quality of the property and verify whether the builder is “a prestigious firm.”
“The owner can ask for the devolution of the house if the building has a serious structural problem. Otherwise, if the problem is general, the promoter should repair the building,” the warning reads.
The purchase contract is another source of much conflict between buyers and sellers. The Zhuhai CC warning stresses that that document should be “clear and concise” and define clearly the date of delivery of the residence. It should also indicate the property’s area since “consumers should be aware of possible mismatching between the gross construction area and the one that is effectively measured.”
Another aspect relates to condominium management companies. Consumers are invited to check throughout what the companies are charging and the services provided.
The neighboring city Consumer Council concluded the document stating that those involved in property and estate conflicts in Zhuhai can contact the Macau CC. Given the protocol between the two institutions, the cases can be transferred to Zhuhai, where the council can provide support to consumers. PB