（Ministry of Construction Edict No. 40， promulgated on 15 November 1994， revised according to the > Decision> on 15 August 2001， and the > Decision> on 20 July 2004.）

颁布日期：20040720 　实施日期：20040720 　颁布单位：建设部

Article 1　These Procedures are formulated in accordance with the PRC， Administration of Urban Real Property Law and the Administration of Urban Real Property Development and Business Regulations in order to strengthen the administration of the pre-sale of commodity premises and protect the lawful rights and interests of both parties in commodity premise transactions.

Article 2　For the purposes of these Procedures， the term “pre-sale of commodity premises” shall refer to an act whereby a real property development enterprise （Development Enterprise） sells in advance to a purchaser buildings currently under construction， and the purchaser pays a deposit or price.

Article 3　These Procedures apply to the administration of the pre-sale of urban commodity premises.

Article 4　The administrative department of the State Council in charge of construction shall centrally administer the pre-sale of urban commodity premises throughout China.

The administrative departments of provinces and autonomous regions in charge of construction shall centrally administer the pre-sale of urban commodity premises within their administrative regions.

The administrative departments of municipalities and counties of the people's governments in charge of construction or real property （Real Property Administration Department（s）） shall be responsible for administering the pre-sale of urban commodity premises within their administrative regions.

Article 5　The following conditions shall be met for pre-sale of commodity premises：

1. the land grant fee has been paid in full and a land use rights certificate has been obtained；

2. the planning permit and construction permit for the construction project are held； and

3. on the basis of the number of commodity premises provided for pre-sale， the funds injected in the development and construction account for 25% or more of the total investment， and the work schedule and the date of completion and delivery have been determined.

Article 6　The pre-sale of commodity premises shall be subject to a licensing system. Development Enterprises that pre-sell their commodity premises shall apply to the Real Property Administration Department for pre-sale permit and obtain a Commodity Premise Pre-sale Permit.

No pre-sale of commodity premises may be carried out without a Commodity Premise Pre-sale Permit.

Article 7　When applying for pre-sale permit， a Development Enterprise shall submit the following documents （photocopies） and information：

1. application form for commodity premise pre-sale permit；

2. business licence and qualification certificate of the Development Enterprise；

3. land use rights certificate， planning permit and construction permit for the construction project；

4. proof that the proportion of funds injected in development and construction in the total investment of construction project meets the prescribed conditions；

5. the construction building contract and description of work schedule； and

6. the proposal for the pre-sale of commodity premises， which shall contain information on the commodity premises such as the location， area and date of completion and delivery， and shall be accompanied by the floor plans of the commodity premises involved in the pre-sale.

Article 8　Licensing of pre-sale of commodity premises shall be handled in accordance with the following procedure：

1. Acceptance of application. Where a Development Enterprise submits relevant materials according to Article 7 hereof and the materials are complete， the Real Property Administration Department shall issue an acceptance notice on the spot. Where the materials are incomplete， it shall issue a written notice in one time on the necessary supplementary materials on the spot or within five days.

2. Examination and verification. The Real Property Administration Department shall examine and verify whether the materials submitted by the Development Enterprise comply with statutory conditions.

The Development Enterprise shall be responsible for the authenticity of the substantive contents of the materials submitted.

3. Licensing. Where the application of the Development Enterprise complies with statutory conditions upon examination， the Real Property Administration Department shall， within 10 days of the date of acceptance， issue a written decision on administrative licensing for the approval of pre-sale according to law， and deliver the decision to the Development Enterprise， and shall issue and send a Commodity Premise Pre-sale Permit to the Development Enterprise within 10 days of the date on which the decision is rendered.

Where the application of the Development Enterprise fails to comply with statutory conditions upon examination， the Real Property Administration Department shall， within 10 days of the date of acceptance， issue a written decision on not to grant permit.　The written decision shall state the reasons therefor， and notify the Development Enterprise of its rights to apply for administrative review or institute an administrative action according to law， and shall be served on the Development Enterprise.

A seal designated for administrative licensing of the Real Property Administration Department shall be affixed on the decision notice of commodity premise pre-sale permit and the decision notice on not to grant commodity premise pre-sale permit. The seal of the Real Property Administration Department shall be affixed on the Commodity Premise Pre-sale Permit.

4. Public Notice. Decisions on not to grant commodity premise pre-sale permit by the Real Property Administration Department shall be publicized， and the public shall have the right to access such decisions.

Article 9　Development Enterprises engaged in the pre-sale of commodity premises shall present their Commodity Premise Pre-sale Permit to purchasers. The advertisements and brochures for the sale must specify the approval document number of the Commodity Premise Pre-sale Permit.

Article 10　For the pre-sale of commodity premises， a Development Enterprise shall enter into a commodity premise pre-sale contract with purchasers. Within 30 days of entering into such contract， the Development Enterprise shall carry out the procedures for registration and for record filing of commodity premise pre-sale contract with the Real Property Administration Department and land administration department of the people's government of the municipality or county.

The Real Property Administration Department shall vigorously apply network information technology to gradually implement online registration and record filing of commodity premise pre-sale contracts.

The procedures for registration and record filing of commodity premise pre-sale contracts may be entrusted to agents. Where agents are entrusted to handle the procedures， the power of attorney shall be in writing.

Article 11　Proceeds from the pre-sale of commodity premises of a Development Enterprise shall be used in the relevant construction projects.

Real Property Administration Departments shall formulate specific procedures for the regulation of commodity premise pre-sale payments.

Article 12　Within 90 days from the date on which pre-sold commodity premises are delivered for use， purchasers shall register title ownership with the Real Property Administration Department and land administration department of the people's government of the municipality or county according to law. Development Enterprises shall provide assistance and the necessary supporting documents.

If， due to reasons of the Development Enterprise， a purchaser fails to obtain the certificate of title ownership within 90 days of the date on which the commodity premises are delivered for use， the Development Enterprise shall bear the liability for breach of contract， unless there is a special agreement between the Development Enterprise and the purchaser.

Article 13　If a Development Enterprise pre-sells commodity premises without a Commodity Premise Pre-sale Permit， penalty shall be imposed in accordance with Article 39 of the Administration of the Urban Real Property Development and Business Regulations.

Article 14　If a Development Enterprise fails to use commodity premise pre-sale payments in accordance with regulations， the Real Property Administration Department shall order rectification within a stipulated time limit， and may impose a fine of not more than three times the amount illegally used， which may not exceed Rmb 30，000.

Article 15　If a Development Enterprise conceals relevant conditions， provides false materials， or uses improper means such as deception and bribery to obtain commodity premise pre-sale permit， the Real Property Administration Department shall order cessation of pre-sale， revoke the commodity premise pre-sale permit and impose a penalty of Rmb 30，000.

Article 16　The administrative departments of provinces and autonomous regions in charge of construction or administrative departments of municipalities directly under the central government in charge of construction or real property may formulate implementing rules on the basis of these Procedures.

Article 17　The administrative department of the State Council in charge of construction shall be responsible for interpreting these Procedures.

Article 18　These Procedures shall be effective as of 1 January 1995.