•"Buyer Beware" is often a mantra for purchasers in real estate deals around the world. Due to varying guidelines governing real estate purchase and sales, this has always held true in China. Recently however, more specific guidelines in the form of the Measures for the Sale of Commodity Houses were issued by the Construction Ministry on April 4th, after Minister Yu Zheng Sheng signed Writ No. 38. These measures took effect June 1st and they are notable because they strengthen consumer protection in six different ways:
1) The purchaser has the right to incorporate into the contract items that were expressed explicitly in the advertisement;
2) At the purchaser's request, the contract can be made to identify the ownership of the public building;
3) The purchaser has the right to designate in the contract methods for resolution of imbalances between gross floor area and net usable areas.
4) The developer shall now assume the obligation of assisting the purchaser in applying for the ownership certificate;
5) The house delivered shall conform with the sample if there is no explanation in advance;
6) The sales agent of the developer is now required to show the purchaser the letter of authorization and other applicable documents.
The enaction of these new guidelines demonstrates the Chinese government's desire to protect consumers, and also to bring real estate transactions more in line with the standards used in other countries.
----Jonathan You