(Promulgated by Decree No. 248 of the State Council of the People's Republic of China on July 20, 1998)

　　Chapter I General Provisions

　　Article 1 These Regulations are formulated in accordance with the relevant provisions of the <

　　Article 2 The real estate development and management referred to in these Regulations means acts of infrastructure construction and housing construction carried out by real estate development enterprises on state-owned land within urban planning zones, and those of transfer of real estate development projects or sale and rental of commodity housing.

　　Article 3 Real estate development and management should practise overall planning, rational distribution(layout), integrated development and matching construction in pursuance of the principle of unification of economic benefits, social benefits and environmental benefits.

　　Article 4 The competent department of construction administration under the State Council shall be responsible for the work of supervision and administration of real estate development and management activities nationwide.

　　The competent departments of real estate development of local people's governments at and above the county level shall be responsible for the work of supervision and administration of real estate development and management activities within their respective areas.

　　The departments in charge of land administration of people's governments at and above the county level shall, in pursuance of the provisions of the relevant laws and administrative regulations, be responsible for the land administration related to real estate development and management.

　　Chapter II Real Estate Development Enterprises

　　Article 5 Establishment of a real estate development enterprise shall, in addition to compliance with the conditions for enterprise establishment prescribed by relevant laws and administrative regulations, fulfil the following conditions:

　　(1)has a registered capital of over RMB 1 million Yuan; and

　　(2)has more than 4 full-time technical personnel with certificates of qualifications of real estate speciality and construction engineering speciality and more than 2 full-time accountants with certificates of qualifications.

　　People's governments of the provinces, autonomous regions and municipalities directly under the Central Government may, in the light of the actual conditions prevailing in their respective localities, work out provisions for the conditions of registered capital and specialized technical personnel for the establishment of a real estate development enterprise higher than those in the preceding paragraph.

　　Article 6 Establishment of a real estate development enterprise by foreign business investment shall, in addition to compliance with the provisions of Article 5 of these Regulations, go through relevant formalities of examination and approval in pursuance of the provisions of laws and administrative regulations on foreign business invested enterprises.

　　Article 7 For the establishment of a real estate development enterprise, an application for registration should be filed at the department of industry and commerce administration of the people's government at or above the county level. The department of industry and commerce administration should, within 30 days starting from the date of receipt of an application, enter into registration the application of which is in line with the conditions prescribed in Article 5 of these Regulations; reasons should be explained in the case of an application not in line with the conditions is not to be entered into registration.

　　The department of industry and commerce administration should, in examining an application for registration for the establishment of a real estate development enterprise, seek the views of the competent department of real estate development at the corresponding level.

　　Article 8 A real estate development enterprise should, within 30 days starting from the date of obtainment of the business license, go to the competent department of real estate development of the locality wherein the registration organ is located with the following documents for the record:

　　(1)a photocopy of the business license;

　　(2)articles of association of the enterprise;

　　(3)certificate of capital attestation;

　　(4)certificate of the identity of the legal representative of the enterprise; and

　　(5)certificates of qualifications and employment contracts of specialized technical personnel.

　　Article 9 The competent department of real estate development should, on the basis of the assets, specialized technical personnel and development and management achievements, verify the human quality grade of a real estate development enterprise put on record. The real estate development enterprise should, in accordance with the verified human quality grade, undertake corresponding real estate development projects. Specific measures shall be formulated by the competent department of construction administration under the State Council.

　　Chapter III Real Estate Development and Construction

　　Article 10 Determination of a real estate development project should meet the requirements of overall planning for land utilization, annual plan for construction land use and urban planning and annual plan for real estate development; where approval by the competent department of planning is necessitated pursuant to relevant state provisions, it should be submitted to the competent department of planning for approval and included in the annual fixed asset investment plan.

　　Article 11 Determination of a real estate development project should adhere to the principle of integration of reconstruction of old districts and construction of new districts, with emphasis on the development of areas where there are weak infrastructure, traffic congestion, serious environmental pollution and concentration of dangerous and dilapidated houses, protection and improvement of urban ecological environment and protection of historic and cultural heritage.

　　Article 12 Land for real estate development should be acquired in the form of transfer; however, where the form of appropriation may be adopted under provisions of law and the State Council is excluded.

　　The competent departments of urban planning administration and the competent departments of real estate development of local people's governments at or above the county level should, prior to the transfer or appropriation of land use right, put forth views in writing on the following matters as one of the basis of transfer or appropriation of land use right:

　　(1)nature, scale and duration of development of a real estate development project;

　　(2)urban planning design criteria;

　　(3)construction requirements for infrastructure and public facilities;

　　(4)property rights definition upon completion of infrastructure; and

　　(5)requirements for dismantling and moving compensation and resettlement related to the project.

　　Article 13 The system of capital fund should be established for a real estate development project, the percentage of capital fund in the total investment of a project shall not be less than 20%.

　　Article 14 Overall planning and arrangement for matching infrastructure should be made in the development and construction of a real estate development project, and it should be carried out in accordance with the principle of first the underground and then on the ground.

　　Article 15 A real estate development enterprise should, in accordance with the land use and duration of construction and development agreed on in the contract of land use right transfer, proceed with project development and construction. Where construction and development have not started on expiry of one year of the duration of start of construction and development agreed on in the contract of transfer, an idle land fee equivalent to less than 20% of the land use right transfer money may be levied and collected; where construction and development have not started on expiry of two years, land use right may be withdrawn without compensation. However, where delay in the start of construction is caused by force majeure or acts of government and departments concerned of government or first-phase work indispensable for the start of construction and development is excluded.

　　Article 16 A real estate project the development and construction of which is undertaken by a real estate development enterprise should conform to the provisions of relevant laws and regulations and technical specifications of construction project quality, safety standards, construction project survey, design and construction as well as the agreement in the contract.

　　A real estate development enterprise should bear responsibility for the quality of the real estate development project the development and construction of which it has undertaken.

　　Survey, design, construction and supervision units should, pursuant to the provisions of relevant laws and regulations or agreement in the contract, bear corresponding responsibility.

　　Article 17 A real estate development project may be delivered for use only on passing the acceptance checks on its completion; where a project has not undergone acceptance checks or has failed to pass the acceptance checks, it shall not be delivered for use.

　　A real estate development enterprise should, upon completion of a real estate development project, file an application for acceptance checks on completion of construction at the competent department of real estate development of local people's government at or above the county level of the locality wherein the project is located. The competent department of real estate development should, within 30 days starting from the date of receipt of the application for acceptance checks on completion of construction, organize the departments or units concerned of project quality supervision, planning, fire prevention and people's air defense to carry out acceptance checks on contents involving public security.

　　Article 18 Comprehensive acceptance checks should be carried out for cluster real estate development projects like residential areas on completion pursuant to the provisions of Article 17 of these Regulations and the following requirements:

　　(1)the state of implementation of the design criteria of urban planning;

　　(2)the state of construction of matching infrastructure and public facilities as required by urban planning;

　　(3)the state of acceptance checks of project quality of single projects;

　　(4)the state of implementation of schemes of dismantling, moving and resettlement; and

　　(5)the state of implementation of property management.

　　Where a cluster real estate development project like a residential area the development of which is undertaken in phases, acceptance checks may be carried out in phases.

　　Article 19 A real estate development enterprise should record the major particulars in the process of construction of the real estate development project in the manuals of real estate development project and despatch them to the competent department of real estate development at regular intervals for the record.

　　Chapter IV Real Estate Management

　　Article 20 Transfer of a real estate development project should conform to the conditions prescribed in Articles 38 and 39 of the<

　　Article 21 For the transfer of a real estate development project, the transferor and the transferee should, within 30 days starting from the date of completion of the formalities of the change in registration of land use right, go to the competent department of real estate development with the contract on the transfer of the real estate development project for the record.

　　Article 22 When transferring a real estate development project, a real estate development enterprise has not completed compensated resettlement for dismantling and moving, the related rights and obligations contained in the original contract of compensated resettlement for dismantling and moving shall be transferred to the transferee. The transferor of the project should notify the person whose house is to be dismantled and who is to move in writing.

　　Article 23 Sale in advance of commodity housing by a real estate development enterprise should meet the following conditions:

　　(1)total amount of land use right transfer money has been paid and certificate of land use right obtained;

　　(2)it holds a permit of construction project planning and a construction permit;

　　(3)input of capital for development and construction reaches over 25% of the total investment in project construction on the basis of calculation of the sale in advance of commodity housing provided, and construction progress and dates of completion of construction and delivery have been determined; and

　　(4)registration for sale in advance has been completed with the obtainment of permit for sale in advance of commodity housing.

　　Article 24 A real estate development enterprise that applies for the registration for the sale in advance of commodity housing should present the following documents:

　　(1)certification materials prescribed in Sections (1) to (3) of Article 23 of these Regulations;

　　(2)business license and certificate of human quality grade;

　　(3)the project construction contract;

　　(4)floor chart of commodity housing for sale in advance; and

　　(5)proposal for sale in advance of the commodity housing.

　　Article 25 The competent department of real estate development should, within 10 days starting from the date of receipt of an application for the sale in advance of commodity housing, make a reply agreeing to the sale in advance or not agreeing to the sale in advance. Where approval for the sale in advance has been granted, a license for the sale in advance of commodity housing should be issued; reasons should be explained for non-approval of the sale in advance.

　　Article 26 No real estate development enterprise shall carry false advertisement and publicity, advertisement for the sale in advance of commodity housing should carry the number of the license for the sale in advance of commodity housing.

　　Article 27 A real estate development enterprise should, in selling in advance of commodity housing, show the purchaser in advance the license for the sale in advance of commodity housing.

　　A real estate development enterprise should, within 30 day a starting from the date of signing of the contract on the sale in advance of the commodity housing, go to the competent department of real estate development and the department in charge of land administration of the people's government at or above the county level of the locality wherein the commodity housing is located for the record.

　　Article 28 The parties interested should sign a written contract for the sale of commodity housing. The contract should carry the construction area and floor area of commodity housing, price, date of delivery, quality requirements, mode of property management as well as liabilities of both parties in the event of violation of the contract.

　　Article 29 A real estate development enterprise that entrusts an intermediary agency for the sale of commodity housing should issue a letter of authority to the intermediary agency. The intermediary agency should, when selling commodity housing, show the purchaser of commodity housing relevant certificate of the commodity housing and the letter of authority for the sale of commodity housing.

　　Article 30 Transfer of a real estate development project and sales price of commodity housing shall be decided upon through consultation by the parties interested; however, the price of residential housing enjoying preferential policy of the state should follow the government guiding price or government set price.

　　Article 31 A real estate development enterprise should, when delivering the commodity housing for use, provide the purchaser with the residence quality guaranty and instructions for residence use.

　　Residence quality guaranty should list such contents as the quality grade, scope of maintenance and repair, duration of maintenance and repair and maintenance and repair unit as verified and inspected by the project quality supervision unit. The real estate development enterprise should, pursuant to the agreement in the residence quality guaranty, undertake the responsibility of maintenance and repair of commodity housing.

　　Where loss to the purchaser has been caused due to the maintenance and repair of commodity housing by the real estate development enterprise resulting in adverse impact on the original function of the house within the duration of maintenance and repair, the enterprise should bear the liability of compensation in accordance with law.

　　Article 32 A purchaser may apply to a project quality supervision unit for re-verification and re-inspection upon the delivery for use of commodity housing if he/she deems the quality of its main body structure is not up to the standards. The purchaser has the right to return the house when the quality of its main body structure is found not up to the standards upon verification and inspection; where loss has been caused to the purchaser, the real estate development enterprise should bear the liability of compensation in accordance with law.

　　Article 33 A purchaser of commodity housing for sale in advance should, within 90 days starting from the date of delivery for use of commodity housing, go through the formalities of change in registration of land use right and registration of housing ownership; a purchaser of commodity housing for cash sale should, within 90 days starting from the date of signing of the sale contract, go through the formalities of change in registration of land use right and registration of housing ownership. The real estate development enterprise should assist the purchaser of commodity housing in going through the formalities of change in registration of land use right and registration of housing ownership and provide necessary certification documents.

　　Chapter V Legal Liability

　　Article 34 Whoever engages in real estate development and management on his/her own without the obtainment of a business license in violation of the provisions of these Regulations shall be ordered by the department of industry and commerce administration of people's government at or above the county level to stop such real estate development and management activities, confisticated of the illegal gains, and may concurrently by imposed a fine less than five times of the illegal gains.

　　Article 35 Whoever engages in real estate development and management without the obtainment of the human quality grade certificate or beyond the human quality grade in violation of the provisions of these Regulations shall be ordered by the competent department of real estate development of people's government at or above the county level to make a rectification within the specified time period, and imposed a fine of more than RMB 50000 Yuan less than RMB 100000 Yuan; where no rectification has been made on expiry of the specified time period, the department of industry and commerce administration shall revoke the business license.

　　Article 36 Whoever effects delivery for use of housing without going through acceptance checks in violation of the provisions of these Regulations shall be ordered by the competent department of real estate development of people's government at or above the county level to go through retrospectively the formalities of acceptance checks within the specified time period; where no formalities of acceptance checks have been completed retrospectively on expiry of the specified time period, the competent department of real estate development of people's government at or above the county level shall organize the departments and units concerned to conduct acceptance checks, and impose a fine of more than RMB 100000 Yuan less than RMB 300000 Yuan. The housing found to be not up to the standards upon acceptance checks shall be handled pursuant to the provisions of Article 37 of these Regulations.

　　Article 37 Whoever effects delivery for use of housing found to be not up to the standards in acceptance checks in violation of the provisions of these Regulations shall be ordered by the competent department of real estate development of people's government at or above the county level to make repairs within the specified time period, and concurrently imposed a fine of less than 2% of the total cost of the housing delivered for use; where the circumstances are serious, the department of industry and commerce administration shall revoke the business license; where loss to the purchaser has been caused, liability for compensation should be borne in accordance with law; where a major accident of casualties has taken place or other serious consequences constituting a crime, criminal liability shall be investigated in accordance with law.

　　Article 38 Whoever transfers a real estate development project on his/her own in violation of the provisions of these Regulations shall be ordered by the department in charge of land administration of people's government at or above the county level to stop the illegal act, confisticated of the illegal gains, and may concurrently be imposed a fine of less than five times of the illegal gains.

　　Article 39 Whoever effects sale in advance of commodity housing on his/her own in violation of the provisions of these Regulations shall be ordered by the competent department of real estate development of people's government at or above the county level to stop such illegal acts, confisticated of the illegal gains, and may concurrently be imposed a fine of less than 1% of down payment collected.

　　Article 40 Functionaries of state organs that neglect their duties, indulge in malpractises for selfish gains and abuse their power constituting a crime in the work of supervision and administration of real estate development and management shall be investigated of criminal liability in accordance with law; where a crime has not been constituted, administrative sanctions shall be imposed in accordance with law.

　　Chapter VI Supplementary Provisions

　　Article 41 Reference to these Regulations shall be made in implementation of supervision and administration of real estate development and management on real estate development and management on state-owned land outside the urgan planning zones.

　　Article 42 Collectively owned land within urban planning zones may be used for real estate development and management only upon requisition and turning into state-owned land.

　　Article 43 These Regulations shall enter into force as of the date of promulgation.