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Article 1. For the purposes of strengthening the management of advance sale of commercial houses and protecting the legitimate rights and interests of both parties in the dealings of commercial houses, the present Measures are formulated in accordance with the Law of the People's Republic of China on Urban Real Estate and the Regulation on the Administration of Development and Business Operations of Urban Real Estate. Article 2. The term "advance sale of commercial houses" mentioned in the present Measures refers to the act that the real estate development enterprises (hereinafter referred to the REDEs) sell the houses under construction to purchasers and the purchasers pay the earnest money or the prices of houses. Article 3. The present Measures shall apply to the management of advance sale of urban commercial houses. Article 4. The construction administrative department of the State Council shall be responsible for the management of advance sale of urban commercial houses of the whole country. The construction administrative department of the provinces, autonomous regions or municipalities directly under the Central Government shall be responsible for the management of advance sale of urban commercial houses within their respective administrative areas. The construction administrative departments of real estate administrative departments of the cities or counties (hereinafter referred to the real estate administrative departments) shall be responsible for the advance sale of urban commercial houses within their administrative areas. Article 5. The advance sale of commercial houses shall meet the following conditions: (1) Having paid the full amount of the land use right transfer fee, and having obtained the land use right certificate; (2) Having a construction project planning license and a construction license; and (3) By making computation on the basis of the commercial houses offered for advance sale, the fund put into the development and construction having reached 25 % of the total amount of investments of the project construction, and the construction progress and the completion delivery date having been determined. Article 6. The advance sale of commercial houses shall be subject to the licensing system. Where an REDE intends to sell commercial houses in advance, it shall apply to the real estate administrative department for advance sale approval so as to obtain the License for Advance Sale of Commercial Houses. No REDE may sell commercial houses in advance without the License for Advance Sale of Commercial Houses. Article 7. When an REDE applies for advance sale approval, it shall submit the following certificates (photocopies) and materials: (1) An application for advance sale of commercial houses; (2) The Business License and qualification certificate of the REDE; (3) The land use right certificate, construction project planning license and construction license; (4) A certification that the ratio between the fund put into the development and construction and the total investments in the project construction meets the prescribed conditions; (5) The project construction contract and the explanations of the construction progress; and (6) The plan on advance sale of commercial houses. It shall state the location, area and completion delivery date of the commercial houses to be sold in advance, shall be accompanied by the ichnographies based on the floors of the commercial houses to be sold in advance. Article 8. The procedures concerning commercial houses advance sale approval shall be as the follows: (1) Acceptance. The REDE shall submit the pertinent materials specified in Article 7 of the present Measures. If the materials are complete, the real estate administrative department shall issue an acceptance notice on the spot. If the materials are incomplete, it shall, on the spot or within 5 days, inform the applicant in written form of the to-be-supplemented materials once and for all; (2) Examination. The real estate administrative department shall examine whether the relevant materials submitted by the REDE satisfy the statutory conditions or not. The REDE shall be liable for the authenticity of the substantial content of these materials; (3) Approval. Upon examination, if the application of the REDE meets the statutory conditions, the real state administrative department shall, within 10 days after the application is accepted, make a written administrative licensing decision of approval of the advance sale in accordance with the law, send the decision to the REDE, and shall, within 10 days after it makes the decision, issue and serve on it the License for Advance Sale of Commercial Houses. Upon examination, if the application of the REDE doesn't meet the statutory conditions, the real estate administrative department shall, within 10 days after it accepts it, make a written decision of disapproval. In the written decision it shall explain the reason and inform the REDE of the right to apply for administrative reconsideration or to lodge an administrative lawsuit. It shall serve the decision on the REDE. The decision of approval of advance sale of commercial houses or decision of disapproval of advance sale of commercial houses shall be affixed with the seal of the real estate administrative department for the exclusive use of administrative licensing. The License for Advance Sale of Commercial Houses shall be affixed with the seal of the real estate administrative department; and (4) Announcement. The decision of approval of advance sale of commercial houses made by the real estate administrative department shall be publicized. The general public is entitled to consult it. Article 9. When an REDE sells commercial houses in advance, it shall show the purchasers the License for Advance Sale of Commercial Houses. The sale advertisements and brochures shall specify the approval number of the License for Advance Sale of Commercial Houses. Article 10. For the advance sale of a commercial house, the REDE shall sign a contract on the advance sale of commercial house with the purchaser. The REDE shall, within 30 days after it signs the contract, go through the register and record formalities for the contract on the advance sale of commercial houses in the real estate administrative department, and the land administrative department of the people's government of the city or county. The real estate administrative department shall actively apply network information technologies and shall gradually carry out online register and record of contracts on the advance sale of commercial houses. The register and record formalities for contracts on advance sale of commercial houses may be handled by an agent upon entrustment. When an agent is entrusted to handle the said formalities, it shall have a written power of attorney. Article 11. The income of an REDE from the advance sale of commercial houses shall be used for the construction of the relevant projects. The specific measures for the supervision of the income from the advance sale of commercial houses shall be formulated by the real estate administrative department. Article 12. With 90 days from the day when a commercial house sold in advance is delivered for use, the purchaser shall, in pursuance of the law, go through the house ownership registration formalities in the real estate administrative department, and the land administrative department of the people's government of the city or county. The REDE shall assist the purchaser in this respect and shall provide the necessary certification documents. Where a purchase fails, due to the reason of the REDE, to obtain the house ownership certificate within 90 days from the day when the house is delivered for use, the REDE shall bear the liabilities for breach of contract unless there is a special stipulation reached between the REDE and the purchaser. Article 13. Where an REDE sells commercial houses in advance without the License for Advance Sale of Commercial Houses, it shall be punished in accordance with Article 39 of the Regulation on the Administration of Development and Business Operations of Urban Real Estate. Article 14. Where an REDE fails to use the income from advance sale of commercial houses in accordance with the provisions, the real estate administrative department shall order it to get right within a time limit and may impose on it a fine of less than 3 times of the illegal gains, but the fine shall not exceed 30,000 yuan. Article 15. Where an REDE obtains the license for advance sale of commercial houses by concealing the relevant information, providing false materials, cheating, bribing or other improper means, the real estate administrative department shall order it to stop the advance sale, revoke the approval of advance sale of commercial houses and impose on it a fine of 30,000 yuan. Article 16. The construction administrative departments of provinces or autonomous regions, and the construction administrative departments or real estate administrative department of the municipalities directly under the Central Government may, according to the present Measures, formulate detailed implementation rules. Article 17. The power to interpret the present Measures shall remain with the construction administrative department of the State Council. Article 18. The present Measures shall come into effect as of January 1, 1995. |
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