[photopress:China_property_new_laws.jpg,full,alignright]There is plainly no doubt about the government’s intent to control the rise and rise of real estate and to make sure, if nothing else, that illegal brokers do not steal the customers’ money. The latest news is that real estate brokers face stricter control. The Ministry of Construction says it will strengthen supervision of capital liquidity in property deals.
According to a regulation issued by the Ministry and the central bank this week, real estate brokers must open a bank account for every customer to deposit the down payment. This fund belongs to the buyer and should be supervised by a third party not involved in the real estate business.
Li Binren, Ministry spokesman, said the fund is to be kept frozen until the deal is sealed to prevent illegal brokers from misappropriating the money before the customer takes ownership of the property.
The regulation comes amid increasing reports of embezzlement and misappropriation by real estate brokers leading to property buyers suffering substantial losses. Li Binren said ‘Misappropriation and embezzlement of down payments has been the biggest risk for the real estate market.’
Source: China Daily