Consumer Council reminds consumers intending to purchase properties in the Mainland to inquire and understand the relevant regulations before making any choices.
As Macao and the Mainland now interact more often in various aspects, many local citizens choose to purchase properties in the Mainland. Chinese property developers also organize different kinds of selling events in Macao to attract local consumers to purchase their first-hand properties (either uncompleted or under construction).
Consumer Council indicates that regulations in China regarding the sale of residential properties are very strict. According to the conditions in China's 'Measures for administration of pre-sale of residential buildings' promulgated in 2001, the pre-sale of residential buildings must follow both '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, 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 their pre-sale activities only 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.
Further, consumers should take note 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, and registration should be made at the provincial department handling real estate and land management within 30 days upon the signing of the above-mentioned contract.
Consumer Council suggests consumers who intend to purchase properties in the Mainland should make inquiry about the relevant regulations prior to making any purchase, it is also suggested to check the information of the estate developer before making any decision.
For inquiry, please call Consumer Council at 8988 9315.
