[photopress:property_apartments_in_shanghai.jpg,full,alignright]The Shanghai Notary Public Office is likely to introduce, within several weeks, a capital supervision service to help ensure the safety of second-hand property deals.
Zheng Jianjun, a senior notary with the office said, ‘If everything goes smoothly, local buyers and sellers of second-hand properties will be able to wrap their deals through our exclusively-designated bank account soon after the week-long Spring Festival holiday. By launching such a service, we wish to offer customers a secure environment for second-hand property transactions.’
The week-long holiday starts on February 6.
The office is now in final discussions with two large real estate brokers to launch the service, Zheng added.
Under its plan, four parties — buyer, seller, property brokerage and the office — will sign a pact which ensures all capital involved in the transaction must pass through the office’s specially-designated bank account.
The office will charge a fee for the service, possibly 0.3 percent of the total housing price, though a final amount has not been decided.
In Shanghai, Sam Wei, an attorney with Co-effort Law Firm, said about 90% of second-hand property deals are now done through real estate brokerages and money disagreements account for nearly 70% of total disputes in second-hand property transactions because of the lack of a third-party bank account.
The local housing and land resources administration bureau is also planning to launch a similar service, likely by the first quarter, industry watchers said.
Source: Shanghai Daily