Contract for the sale of housing (apartments) in China: a new procedure for signing, paying, transferring an apartment

In order to implement China's new procedure for concluding residential sales contracts and to further standardize commercial housing transactions, ensure the security of residential transactions, and effectively protect the legitimate rights and interests of both buyers and sellers, the Nanning Municipal Housing and Housing Bureau and The Department of Urban and Rural Development has released a new Nanning Commercial Residential Sales Agreement Pilot (Preliminary Sale) and Nanning Commercial Residential Sales Agreement (Ongoing Sale) Notice (Draft for Comment). Citizens can submit comments and suggestions via email.


What are the features of the new version of the contract? It is reported that the revised agreement adds appropriate provisions for the supervision of presale funds, which provides a layer of legal protection for presale funds, avoids the risk of threats to housing companies, and also prevents unfinished buildings. At the same time, many reminders to buy a house were added, and the time for online signing and managing the previous property was included in the contract, making purchase planning clearer.


Moment 1: The purchase price must be deposited into the presale fund control account.


Recently, many cities have increased oversight of commercial housing pre-sale funds to better protect the rights and interests of homebuyers and avoid unfinished properties. The "Special Notice" of the new edition (pre-sale) of the Nanning commercial housing contract clarifies that the deposit, prepayment, security deposit, housing cost (including mortgage) and other home purchase payments when buying a house must be deposited in special commercial housing pre-sale funds .


The supervision account is used for construction related to a commercial housing project. If the buyer deposits money into a non-custodial account, it will not only affect the online signing and registration of the contract, but also entail the risk of delaying the purchase. If the buyer finds that the transfer account information does not match the designated deposit account information, the buyer has the right to refuse payment.


The new edition of the (pre-sale) agreement “payment of the cost of housing” also added: “If payment is made by loan, then the mortgage bank is obliged to transfer all mortgage loans directly to the special account of pre-sale funds when issuing a loan and should not be transferred to other accounts.” In this regard, the relevant analysis considers that the inclusion in the contract of "all payments for the house to the account of the pre-sale supervision fund" will provide pre-sale funds with greater legal protection.


In addition, the new version of the (pre-sale) contract also states that the development and construction unit makes an advance payment to the special maintenance fund for the first stage facility before applying for a pre-sale license, and the buyer must pay for the development. and building unit prepaid first priority special service fund for the property. The actual amount of the deposit of the first priority property special service fund depends on the measured area, and more refunds and less compensation should be realized.

Moment 2: New reminder to buy a home to clarify the conditions for buying a property


The reporter noted that the "special notice" of the new version of the contract also added many reminders to buy apartments. For example, how to check the pre-sales certificate and prudently sign the contract. Before signing the contract, you must fully understand Nanning's current policy regarding the purchase of a house, loan, reserve fund, etc., and check whether you are qualified. In particular, you should pay attention to the relevant provisions, such as finishing standards, terms of delivery and terms of delivery of commercial housing, division of responsibility for breach of contract, etc., and fully agree with the developer on the content of the contract. If necessary, consult with professional institutions such as law firms and notary offices.


At the same time, the new version (for sale) of the contract also specifies the terms of the purchase. For example, "commercial homes must obtain approval documents or permits issued by the competent planning department and the competent fire inspection department of construction projects, and the quality of the project has passed the acceptance test."


Moment 3: Check online signing time to avoid "one room for more sales"


It is worth noting that the new version (currently being sold) of the contract clearly states that the online signature cannot be processed more than 30 days after the contract was signed. The draft for comment reads: “After both sides of the house have reached an agreement on the terms of the contract, the seller must enter the Nanning Housing Transaction Supervision System within 30 days from the date of signing the contract to sign the preliminary commercial housing sale contract online , and sign the contract online and notify the buyer of the filing status.


Previously, there were no special requirements for the time of online signing. Generally, if a sales contract has not been processed for more than 30 days from the date of signing, the record of commercial housing sales contract information in the transaction system was automatically unlocked and it was automatically restored to a "saleable" state, which made it possible for some offenders the same apartment to different people