ABSTRACT

As a condition to preselling a dwelling unit, the developer must, among other things, obtain permission to presell the home. In addition, the developer must submit the presale contract for registration in the public record. The Law on the Administration of Urban Real Estate, which dates back to 1995, appears to provide the buyer with some protection. Under the Law on the Administration of Urban Real Estate, The State shall support the development of construction of residential houses so as to gradually improve the housing conditions of residents. The intermediaries, in essence, are buying the units in bulk at wholesale prices and reselling them individually at retail, sharing the markup with the developer while adding to the hype that surrounds the building. Under China's Property Rights Law, a buyer may apply for "pre-notice registration", which serves as notice of the buyer's interest in the property prior to the official transfer of the land use right.