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Fujian has issued policies to strengthen the supervision of pre-sale funds. Special funds shall not be misappropriated for land purchase or debt repayment.
Sep 16,2020 09:52CST
translation
[Fujian issued a policy to strengthen the supervision of pre-sale funds shall not be misappropriated for land purchase or debt repayment] on September 15, the Fujian Provincial Department of Housing and Urban-Rural Development issued the guidance on strengthening the Supervision of pre-sale funds of Commercial Housing Fujian Construction (2020) No. 7, in order to further strengthen the supervision and management of pre-sale funds of commercial housing and safeguard the legitimate rights and interests of both sides of commercial housing transactions. The document mainly involves nine aspects.
The content below was translated by Tencent automatically for reference.

SMM Network: September 15, Fujian Provincial Department of Housing and Urban-Rural Development issued the "guidance on strengthening the supervision of commercial housing pre-sale funds Minjian (2020) 7", in order to further strengthen the supervision and management of commercial housing pre-sale funds and safeguard the legitimate rights and interests of both sides of commercial housing transactions. The document mainly involves nine aspects.

First, the requirements of supervision and control work. In accordance with the requirements of "one city, one policy", all localities should earnestly strengthen the supervision of funds for the pre-sale of commercial housing, consolidate the main responsibility of the city, and promote the steady and healthy development of the real estate market. It is necessary to standardize the deposit and allocation of pre-sale funds, use special funds for project construction, ensure that real estate development enterprises deliver commercial houses that are qualified for completion and acceptance on time, protect the legitimate rights and interests of property buyers, prevent and resolve real estate financial risks, reduce and avoid the occurrence of "unfinished buildings", and maintain the stability of the real estate market and social stability.

Second, sign a supervision agreement. The real estate management departments of each district and city shall formulate and improve the specific measures for the supervision of commercial housing pre-sale funds and the text of the supervision agreement, clarify the rights, obligations and responsibilities of all parties, and clarify the supervision quota, supervision mode, allocation process and liability for breach of contract of the pre-sale funds. The supervision agreement shall be jointly signed by the real estate management department or authorized institutions (such as transaction registration agencies), real estate development enterprises and regulatory banks.

Third, set up supervision accounts. A real estate development enterprise shall set up a special account for the supervision of pre-sale funds in commercial banks that meet the requirements for the supervision of pre-sale funds at the location of the project. The supervision account name and account number shall be specified in the commercial housing pre-sale license. The supervision account is specially used for the deposit and allocation of commercial housing pre-sale funds, and shall not open any form of non-counter channel business.

Fourth, deposit the pre-sale money. The funds for the pre-sale of commercial housing (all the money paid by the buyer in accordance with the contract for the sale of commercial housing, including deposit, down payment in advance, installment, one-time payment, bank mortgage loan, housing accumulation fund loan, etc.) should all be deposited directly into the supervision account. If a commercial bank applies for a loan or a housing accumulation fund loan, the supervision account shall be transferred to the account as a loan. When handling the online signing of commercial housing pre-sale contracts for the record, the vouchers that the pre-sale funds have been deposited in the supervision account shall be checked.

Fifth, define the quota of supervision. The real estate management departments of the cities and counties where the pre-sale project is located shall comprehensively determine the total amount of funds for the pre-sale of commercial housing with reference to such factors as the project construction cost, the construction contract amount, and the delivery and use conditions of the project, to ensure the smooth completion of the project, and to specify the specific amount and supervision fund control requirements on each project construction progress node in the supervision agreement (the specific supervision quota shall be determined by the localities themselves). The supervision quota of pre-sale funds can be linked to the results of comprehensive credit evaluation of real estate development enterprises. For AAA real estate development enterprises with excellent credit evaluation, the supervision quota can be appropriately reduced; for C-level real estate development enterprises with bad credit, the supervision quota should be increased.

Sixth, supervise the use of funds. The real estate management department and the supervisory bank shall exercise key supervision over the pre-sale funds within the supervision quota, and the special funds shall be specially used to pay the construction costs of the pre-sale projects, and shall not be used to pay any loan (loan) principal and interest. Pay land money, fines, marketing fees and real estate development enterprise staff wages and other expenses. Applications for the use of pre-sale funds within the regulatory quota shall be handled in accordance with the provisions of the measures for the supervision of pre-sale funds or in the manner stipulated in the supervision agreement. The real estate development enterprise works out the pre-sale project use plan according to the project construction plan and construction progress, pays the node according to the use plan and project construction cost, and takes the pre-sale permit building as the unit to withdraw the pre-sale supervision fund. After the construction progress of the project reaches the corresponding node, the real estate development enterprise shall submit an application, together with the written certification materials of the construction, supervision and other units, photos of the construction site and other project progress certification materials, according to the supervision agreement, if the application for fund allocation meets the conditions after verification, the supervisory bank shall go through the payment procedures on time.

Seventh, implement dynamic supervision. The real estate management department should strengthen the supervision and inspection of the pre-sale funds of various real estate development projects, regularly sort out the sales amount of each project, construction progress, project payment and the use of pre-sale supervision funds, and investigate risk projects. The real estate management departments of each district and city should establish and improve the supervision system of pre-sale funds, connect with the funds receipt and payment system of commercial banks and the net label system of commercial housing, and dynamically monitor the payment and allocation of funds in the supervision account. if it is found that the pre-sale funds of commercial housing are not fully deposited in the supervision account, misappropriation or out-of-scope use of supervision funds and other abnormal circumstances, the allocation of pre-sale funds shall be suspended; If it is verified that there is no anomaly, or if the abnormal situation disappears, the normal allocation shall be resumed in a timely manner.

The supervising bank shall handle the allocation of pre-sale funds in accordance with the provisions of the local pre-sale funds supervision measures and the agreement, and take the initiative to cooperate with the real estate management department to carry out the supervision and inspection of pre-sale funds. If it is found that the real estate development enterprise uses the pre-sale supervision funds in violation of the regulations of the supervision measures or the supervision agreement, and if other departments freeze and withhold the pre-sale funds of the supervision account in accordance with the law, it shall promptly inform the real estate management department in writing.

All localities should establish an early warning mechanism for the change of pre-sale funds, and for real estate risk projects with problems such as the mismatch between the balance of pre-sale funds and the progress of the project image, abnormal allocation of funds, etc., they should sort out and analyze the reasons one by one and implement inventory management; for those with the risk of shutdown and unfinished work, the real estate management department should strengthen the implementation of emergency disposal to ensure the follow-up construction of the project.

Eighth, deal with breach of contract in violation of regulations. For illegal acts such as not depositing all the commercial housing pre-sale funds into the supervision account, evading the supervision of commercial housing pre-sale funds in disguise under the pretext of collecting other funds, falsely reporting the progress of the project image, misappropriating or illegally using the funds within the regulatory quota, the real estate management department shall suspend the online signature of the project commercial housing sales contract for the record, and order the time limit to correct, and the circumstances are serious, he shall be punished in accordance with the law. An enterprise that commits a breach of contract in violation of regulations shall be recorded in the management of enterprise credit information.

All localities should actively explore the establishment of a list management system for the supervision of pre-sale funds of commercial housing. For regulatory banks that fail to perform the supervision agreement on pre-sale funds of commercial housing, illegally allocate the supervision funds for pre-sale of commercial housing, and do not cooperate with the supervision and inspection of real estate management departments, the bank may, in accordance with the agreement, be listed as a dishonest unit for the supervision of pre-sale funds of commercial housing, suspend or terminate as a cooperative unit for the supervision of pre-sale funds of commercial housing, and notify the people's Bank of China and banking supervision departments. To deal with it.

9. Clarify the responsibilities of supervision. When the real estate management department implements the supervision of pre-sale funds, it should formulate the business process, time limit and graded authority, and strictly implement it, and strengthen the process management through the supervision system of pre-sale funds. All localities clearly define the leaders and responsible personnel for the supervision of the pre-sale of funds, strengthen the supervision over the performance of their duties, strengthen the supervision and accountability mechanism, strictly enforce the education and management of the contingent of cadres, and seriously deal with all kinds of violations of law and discipline, thus causing major impacts, be held accountable in accordance with the law, and even be held legally accountable.

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