Pre-sale funds of new residential units to be supervised by Guiyang

The bureau of housing and urban-rural development in Guiyang – capital of Southwest China's Guizhou province – has moved to increase supervision of the funds of pre-sales of new residential apartments being built by private developers.

After a new housing project conducts pre-sales, the developers receive a variety of purchase money – including deposits, down payments, mortgage loans.

The Guiyang authorities want to regulate the process further.

To that end, the bureau recently issued the "Guiyang commercial housing pre-sale funds supervision and management operation rules (interim)".

The document requires that the pre-sale funds for new commercial housing be supervised in full and pre-sale funds used to pay for engineering construction and other costs should be monitored more closely. 

Under its provisions, key supervision standards shall be determined by relevant professional institutions organized by the municipal housing and construction departments – taking into account building structures, uses and other factors – and shall be adjusted and released to the public from time to time.

Before using the pre-sale funds, the developers will be required to submit a detailed project payments plan – covering the project's cost, total amount of pre-sales, their own capital situation, financing ability and other factors – to the city's housing construction department.  

Additionally, the key amount in the supervision account must be used for the necessary construction materials, equipment and other related expenditures to guarantee the construction of the project.