Laws of the People's Republic of China

   Article 1 These Provisions are formulated in order to develop and standardize the real estate market of this city and strengthen the management of the broking activities in real estate.

   Article 2 The broking activities in real estate mentioned in these Provisions refers to the business activities for providing such services as intermediate introduction, agency, consultation, etc. on payment of fees to the clients who are engaged in the development, transference, mortgage or lease of real estate (hereinafter called the client concerned). But the broking activities for transferring the right to use state-owned land are excluded.

The real estate agent mentioned in these Provisions refers to an organization or an individual who is qualified as a real estate agent, has been approved to register at the industry and commerce administration department, and has received the business licence to undertake broking activities in real estate.

   Article 3 These Provisions shall apply to all the real estate agents undertaking broking activities in real estate in this city.

Real estate agents who have not registered in this city are not allowed to undertake broking activities in real estate in this city.

   Article 4 The Municipal Real Estate Administration and the Municipal Industry and Commerce Administration are competent authorities for administering broking activities in real estate in this city. The district or county real estate administration and the Pudong New Area real estate administration department (hereinafter referred to as the district or county real estate administration department) and the district or county industry and commerce administration are the competent authorities for administering broking activities in their respective administrative divisions.

The municipal, district or county real estate trading administration departments are in charge of the daily routine in the administration of real estate agents.

CHAPTER II APPLICATION CONDITIONS AND PROCEDURES

   Article 5 Those who have reached the age of 18, have this city's registered permanent residence, have acquired the education of senior middle school or up, and have undergone the unified trainings organized by the Municipal Real Estate Administration, passed its examinations, and received the "Qualification Certificate for Shanghai Real Estate Agent" issued by the Municipal Real Estate Administration may apply for undertaking broking activities in real estate. But those who are not allowed to hold concurrent posts according to the provisions of the State and this city are excluded.

   Article 6 The applicant to establish a real estate broking organization shall have the following qualifications:

1. Having 5 persons or more who have received the "Qualification Certificate for Shanghai Real Estate Agent";

2. Having a capital of RMB 100,000 or more;

3. Having the articles of association with a definite business aim;

4. Having a fixed place of business.

   Article 7 The applicant to become a private real estate agent shall have the following qualifications:

1. Having received the "Qualification Certificate for Shanghai Real Estate Agent";

2. Having a capital of RMB 20,000 or more, or the property security worth RMB 20,000 or more provided by his guarantor;

3. Having a fixed place for broking activities;

4. Having had no criminal record in the 3 years previous to his application.

   Article 8 An applicant to become a real estate agent shall apply for registration to the industry and commerce administration department in his business location. The industry and commerce administration department shall approve his registration if the conditions in these Provisions are met, and shall grant him the business licence, while for those who do not meet the conditions in these Provisions, no registration shall be granted.

Within 30 days after receiving the business licence, the real estate agent shall report it for the record to the district or county real estate trading administration department in the place where the industry and commerce registration organization is located.

   Article 9 The "Qualification Certificate for Shanghai Real Estate Agent" is to be verified by the issuing organization every two years. Those who fail to pass the verification or do not take part in the verification without any reason must not be allowed to undertake broking activities in real estate.

CHAPTER III MANAGEMENT OF BROKERAGE

   Article 10 The real estate broking activities of a real estate broking organization must be conducted by its personnel who have received the "Qualification Certificate for Shanghai Real Estate Agent".

The personnel who have the "Qualification Certificate for Shanghai Real Estate Agent" must conduct broking activities in real estate in the name of a real estate agent.

   Article 11 A real estate agent shall sign a real estate brokerage contract with the client concerned when providing the latter with such services as intermediate introduction, agency, or consultation on entrusted items.

A real estate brokerage contract shall include the following main points:

1. Object (items for brokerage);

2. Requirements and standards for the brokerage items;

3. Time limit of the fulfillment of the contract;

4. The amount of service fee and mode of payment