Procedures of Shanghai Municipality on the Transfer of Real Estates

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Procedures of Shanghai Municipality on the Transfer of Real Estates

Procedures of Shanghai Municipality on the Transfer of Real Estates

(Promulgated by Decree No.42 of the Shanghai Municipal People's Government on April 30,1997)

     Chapter I Genera1Provtsions

     Article 1 Purpose and Basis
     With the view to standardizing the act of transferring real estate, protecting the legitimate right and interests of the transferor and transferee of the party and other relate person(s), and maintaining the normal order of the real estate market, these Procedures are formulated in accordance with the provisions of the Law of the People's Republic of China on Urban Real Estate Administration, the Law of the People's Republic of China on Land Administration as well as other laws and regulations, and in the light of the actual circumstances of this Municipality.
     Article 2 Scope of Application
     These Procedures apply to the transfer of real estate within the administrative areas of this Municipality.
     Article 3 Definition
     The real estate transfer mentioned in these Procedures refers to the act of a real estate right owner of transferring the title of his or her legally owned real estate to other person(s).
     The real estate right owner mentioned in the preceding paragraph refers to a natural person, 1egal person or other organization that legally owns the ownership of a house and /or the land-use right.
     Article 4 Administrative Department
     The Shanghai Municipal Housing and Land Resources Administration (hereinafter referred to as the Municipal Housing and Land Resources Administration) is the competent administrative authorities in charge of real estate transfer in this Municipality. The district or county real estate administrative department is in charge of the administrative work of real estate transfer within its jurisdiction, professionally it is under the leadership of the Municipal Housing and Land Resources Administration.
     The administrative organs of real estate transactions under the Municipal Housing and Land Resources Administration and the district or county real estate administrative department are respectively in charge of the specific administrative work for ownership transfer formalities of the real estate transfer in accordance with the relevant regulations of Municipal People's Government
     The administrative departments of finance, tax, price conto1, industry and commerce, planning, and residential construction shall work in coordination with each other to implement these Procedures according to their own responsibilities.
     Article 5 Principal of Transfer
     Real estate transfer shall follow the principle of voluntaries, fairness and honesty.
     Article 6 Modes of Transfer
     The modes of real estate transfer are as fo11ows:
     1.Purchase and sell;
     2.Exchange;
     3.Gift;
     4.Payment of debt with real estate;
     5.Real estate right transferred when the real estate is appraised at a certain value to be used as capital investment or as a condition of cooperation for the owner to form a corporate legal person with another person or enterprise;
     6.Real estate rights transferred as assets of the enterprises through merge or consolidation of these enterprises; and
     7.Other modes permitted by laws, regulations and rules.

     Chapter II General Rules

     Section I Scope and Conditions of Transfer

     Article 7 The Parties to the Transfer
     Only the owner(s) of real estate rights, who has (have) acquired the certificate of real estate rights after registration in accordance with law, shall be the transferor of the real estate.
     The transferee of real estate may be any natural person, or legal person, or other organization, within or outside the People's Republic of China, except those otherwise provided by laws, regulations, or rules, or those otherwise stipu1ated by contract(s) of land-use right.
     Article 8 Real Estate Being not Permitted to be Transferred
     Real estate is not permitted to be transferred under any of the following circumstances:
     1.Not having acquired the certificate of real estate right through registration in accordance with law;
     2.Being jointly owned real estate without written consent of other joint owners;
     3.Having real estate rights in dispute, still in the process of litigation, arbitration or administrative settlement;
     4.Real estate being sealed up, or real estate rights being restricted in other forms by a ruling or decision made by judicial organ or administrative department in accordance with law;
     5.Land-use right being revoked according to law; or
     6.Other circumstances where transfer of real estate is not permitted by laws and regulations.
     Article 9 Conditions for Transfer of Houses Built on State-owned Land
     If it is necessary to transfer with legal effect the ownership of a house that is built on a tract of land, the right of use of which is owned by the State, the transfer shall be done by going through all formalities of transfer of real estate rights provided by these Procedures, only after having registered the ownership of the house and the land-use right of the area occupied by the house, as well as having acquired the certificate of ownership of real estate right.
     Article 10 Conditions for the Transfer of Right of Use of State-owned Land for Mass Development
     If the land-use right of a tract of state-owned land acquired by way of granting is to be used for development and construction and the land-use right of this tract of state-owned land needs to be transferred, the following conditions shall be met:
     1.The granting fee for land-use right is fully paid in accordance with provisions of laws and certificate of right of ownership of real estate is acquired;
     2.The land-use right is already registered in accordance with provisions of laws and certificates of right of ownership of real estate is acquired;
     3.The land that needs to be transferred has already evolved the conditions for industrial use or other construction use;
     4.The planning administrative department has already axed the nature of planned use and planned technical parameters of the land that needs to be transferred; and
     5.Other conditions stipulated by the granting contact.
     If the land-use right of the tract state-owned land acquired through allocation for development and construction needs to be transferred, the conditions listed in Item 2,3and 4of the preceding Paragraph shall be met, and the transfer it shall be reported to the Municipal People's Government for approval.
     Article 11 Definition for Transferring the Real Estate on Granted State-owned Land
     In the case where the land-use right of a tract of state-owned land is acquired by way of granting, when the real estate is to be transferred, the right and obligations stipulated in the granting contact shall be transferred at the same time together with the transfer of the real estate.
     Article 12 Restriction on Transferring the Real Estate on the Allocated State-owned Land
     In the case where the land-use right of a tract of State-owned land is acquired by way of allocation, when the real estate is to be transferred, the transferee shall go through the procedures of granting land-use right and pay the granting fee for the land-use right; if according to the relevant provisions of laws, regulations and rules, the procedures of granting land-use right is not necessary, the transferor shall turn over to the state that part of profit gained from the land out of the profit gained from the transfer of the real estate.
     The specific procedures for turning over the profit gained from the land shall be formulated separately by the Municipal People's Government according to the stipulations of the State Council.
     Article 13 Conditions of the Transfer of House on Collectively owned Land
     If a house built on the collectively owned land needs to be transferred, the following conditions shall be met:
     1.The ownership of the house and the land-use right of the land occupied by the house are registered in accordance with law and the certificate of the ownership of the real estate is obtained;
     2.The transferee of the transferred residential house shall be a person who meets the condition for residential house construction application within the area of the township in which the home is located; the transferee of the transferred non-residential house shall be a collective economic organization or a self employed worker within the area of the town in which the house is located; and
     3.The application for transferring the residential house has been approved by the people's government of the township in which the house in located.
     If the house built on collectively-owned land needs to be transferred to the transferee other than those stipulated in Item 2 of the preceding paragraph, the transfer procedures can be made according to the provisions of these Procedures only after the requisition procedure of the collectively-owned land has been made according to law.
     Article 14 Priority for Purchasing Red Estate
     When jointly owned real estate is to be sold, the joint owner of the real estate has the preemptive right under the same conditions.
     When rented real estate is to be sold, the tenant has the preemptive right under the same conditions.

     Section II Transfer Procedure

     Article 15 Conclusion of Transfer Contact
     When transferring real estate, the parties to the transfer shall make a contract for the real estate transfer with the exception listed in Item 5 and 6 of Article 6 of these Procedures.
     Article 16 Main Contents of Transfer Contract
     Contracts for real estate transfer include contract for buying and selling, exchange contract, contract for paying debt and contract for gift.
     Contract for buying and selling real estate shall state the following main contents:
     1.Name and address of the domicile (or of place of business) of the parties to the transfer;
     2.Location, area and the four boundaries of the real estate;
     3.Nature of land ownership;
     4.Mode of acquisition and time limit of land-use right;
     5.Nature of real estate's p1anned use;
     6.Plane layout, structure, construction quality, decoration standard, attached facilities and accessory facilities of the house;
     7.Price, terms of payment and tune limit of the real estate transfer;
     8.Delivery date of the real estate;
     9.Liabilities for breach of contract;
     10.Method of dispute settlement; and
     11.Other matter agreed upon by the parties is the transfer contract.
     Apart from the items stipulated above in the preceding paragraph, the exchange contract for real estate shall state the-price difference of the exchange; contract for paying debt with real estate, while meeting the above stipulations, shall state the offset debt and its amount. Contact for real estate as gift shall conform to the provisions of relevant law.
     The model text of real estate transfer contact shall be formulated by the Municipal Housing and Land Resources Administration. The parties to the transfer shall make real estate transfer contract by referring to the model text.
     Article 17 Effective Date of Transfer Contact
     A real estate transfer contact shall become effective upon the date of signature by the parties to the transfer with the following exceptions:
     1.In case the in parties to the real estate transfer have agree on the condition of the coming into effect of the contract, the transfer contract shall become effective on the date that the agreed condition if fulfilled; and
     2.In case laws, regulations and rules have stipulated that the contact must be notarized, or the parties to the transfer have agreed on the notarization of the contract, the transfer contact shall become effective on the date of notarization.
     Article 18 Application for Ownership Transfer and Report of Appraised Price
     Upon the coming into effect of the transfer contract or other relevant legal documents, the parties to the transfer shall apply to the administrative organ of real estate transactions for ownership transfer and hand in the following documents:
     1.Right certificate of the ownership of real estate;
     2.Identiacation card of the parties to the transfer;
     3.Transfer contract or legal document related to the transfer; and
     4.Other relevant documents;
     In case of buying and selling and exchanging of real estate as well as paying debt with real estate, the parties to the transfer shall report honestly to the administrative organs or real estate transactions the transferring price while going through the formalities for ownership transactions the transferring price while going through the formalities for ownership transfer and shall not hide the actual price or report a false price.
     The administrative organs of real estate transactions shall regularly send copies of the transfer price reported by the parties to the transfer to the tax and price control departments at the same level.
     Article 19 Examination and Verification of Ownership Transfer and the Registration of Alteration
     Administrative institution of real estate transactions shall complete its examination and verification procedures within 15 days after the date of accepting the application for ownership transfer by the parties to the transfer. For those that do not meet the stipulated condition or procedure, the organ shall make the decision that the ownership transfer is refused and inform the parties to the transfer in writing thereof. For those that meet the stipulated condition or procedure, the organ shall turn over the application for ownership transfer to the registration department of real estate, and the registration department of real estate shall make the alteration registration for the real estate transfer according to the provisions of the Regulations of Shanghai Municipality on Real Estate Registration.
     The alteration registration for the real estate transfer shall be completed within 15 days after the administrative organ of real estate transactions has turned over the application for ownership transfer to the registration department of real estate, and the administrative organ of real estate trade shall inform the transferee to get the certificate of the real estate.

     Section III Rights, Duties and Liabilities of the Parties to the Transfer

     Article 20 Date of Transfer Rights of Real Estate
     The date of transferring the rights of real estate shall be the date on which the administrative organs of real estate transactions accepts the application of the parties to the transfer for the ownership transfer; but if the administrative organs of real estate transactions decides to accept the ownership transfer after the examination and verification, the date of transferring the right of the real estate shall be the date on which the parties to theU3nshr apply again for ownership transfer.
     Article 21 Date of Transferring Risk Liability
     Risk liability of real estate shall shift from the transferee to the transferee on the date of transferring the rights of real estate; but if the parties to the of transfer have reached an agreement that risk liability of real estate shall shift on the date of transfer of the right of the real estate, the agreement shall be observed.
     Article 22 Restriction for Signing Transfer Contract with a Third party
     After a transfer contract of real estate is signed and the contractual relation is not legally terminated, the transferor shall not sign transfer contract with a third party for the same real estate.
     The transfer of the real estate shall have the corresponding civil liability if he or she causes loss to other person(s) by violating the provisions of the preceding Clause of this Article.
     Article 23 Informing Relevant Matters Concerning the Real Estate
     When transferring real estate, the transferor shall inform the transferee accurately of the relevant matters concerning the real estate such as mortgage relationship, lease relationship, and the neighboring relationship, etc.
     The transferor shall bear the corresponding civil liability if he or she causes loss to other person(s) by violating the provision of the preceding Clause of this Article.
     Article 24 Continuation of the Performance of Lease Contact
     In case of the transfer of the real estate that is already leased out, and the interested parties to the transfer of the real estate have already had it legally registered for the record, the performance of the lease contract shall be continued by the transferee of the real estate.
     Article 25 True Representation of Advertising
     Advertisement relating to real estate transfer prospectus and sketch map describing the conditions of the real estate shall true and accurate.
     In case the plane layout, structure, construction quality, decorations standard and attached accessory facilities and etc. of the commodity houses are shown to the public with a sample house, the actual conditions of the commodity houses shall be in conformity with the sample house.
     The transfer of the real estate shall have the corresponding civil liability if he or she causes loss to other person(s) by violating the provisions of the preceding Clause of this Article.
     Article 26 Definition of Severance of Land-use Right
     When a house is transferred, the ownership of the house and the land-use dd1t of the land occupied by the house are transferred simultaneously.
     When a house is transferred by story or by apartment, the land -use right of the land occupied by the house as a whole cannot be severed; the transferees of the real estate shall acquire the part of land-use right in proportion to the construction area of the house that is transferred by story or by apartment.
     Article 27 Definition of Transfer of House and Its Related Facilities
     When a house is transferred, the attached facilities of the house are transferred simultaneously. If the subterranean parking garage or other attached building and structure of a newly-built house, which can be separately transferred according the relevant provisions of laws and regulations of the state and Shanghai Municipality, needs to be transferred separately, it shall be so stipulated in the transfer contract; if a separate transfer is not stipulated in the transfer contract, it shall be considered as a part of a package transfer.
     When a house is transferred, the common area and facility for common use shall be transferred together with the area and facility for private use; the construction area for common use shall be shared by the real estate right owners in accordance with the relevant provisions of laws and regulation of the State and Shanghai Municipality.
     Houses that are architectural1y designed to form one unit can not be revered and be transferred individually.
     Article 28 Definition of Transfer Price
     The transfer price of real estate is settled by the parties to the transfer through negotiation, but the sales prices of newly-built houses for resettlement and parity price houses shall be verified and determined by the municipal price control department and the municipal administrative department of residential construction.
     When real estate is sold, exchanged or transferred as payment for debt, the price of real estate stipulated in the transfer contact shall be the total price of the house ownership and the land-use right of the land occupied by the home acquired by the transferee in accordance with Article 26 and 27 of these Procedures.
     Article 29 Guaranteed Duty to Repair of Newly built House after Transfer
     When a newly built house is sold, exchanged, or transferred as payment for debt, the transferred shall have the guaranteed duty of repair of the newly built home on the date of the transferring the rights of the real estate. The term of newly built house shall be stipulated in the transfer contract by the parties to the transfer, but it shall not be less than two Years.
     If the newly built house transferred again during the term of guaranteed duty to repair the original transferor of the house shall continue to have the guaranteed duty to repair in accordance with the original transfer contract.
     Article 30 Liability for Breach of Contract
     When a real estate is sold, exchanged, or transfer as payment for debt, if one of the parties breaches the stipulations of the transfer contract, he or she shall pay a penalty for breach of contract to the other party; if the breach of contract causes loss to the other party, the party that breaches the contract shall make compensation according to law.
     The amount of penalty for breach of contract shall be stipulated in he transfer contract; if it is not stipulated in the transfer contract, and has met any one of the following conditions, shall be determined according to the standard stipulated below:
     1.If the real estate is not delivered according to the stipulated time owing to the fault of the real estate transferor, the penalty for breach of contract paid by the transferor to the transferee shall be twice the interest of the paid transfer price calculated in accordance with the interest rate of the same period announced by the People's Bank of China; or
     2. If the transfer price is not paid within the stipulated time owing to the fault of the transferee, the penalty for breach of contract paid by the transferee to the transferor shall be twice the interest of the overdue transfer price calculated in accordance with the interest rate of the same period announced by the People's Bank of China.
     Article 31 Payment of Related Tax and Fee
     When real estate is sold, exchanged, presented as a gift, or transferred as payment for debt, the parties to the transfer shall pay tax according to the stipulations of the State laws and regulations; and, if the real estate is sold, exchanged or transferred as payment for debt, a service charge for each transaction shall be paid to the administrative organ for real estate transactions.
     The tax and service charge for transferring real estate shall be calculated in accordance with the transfer price reported by the parties to the transfer; of which the tax and service charge exchanged
     Real estate shall be calculated according to the difference of the exchange prices reported. But if the transfer price by the transfer parties to the transfer is evidently lower than the normal market price, the tax and service charge shall be calculated according to the appraisal price of the real estate.
     The standard of service charge for a transaction shall be stipulated by the municipal price control department jointly with the municipal finance department.

     Chapter III Advance Sale of commercial House

     Article 32 Condition of Advance Sale
     The following condition shall be met for advance sale of commodity houses:
     1.The Land-use right is obtained through granting, and the granting fee for the land-use right is fully paid;
     2.The land-use right is registered in accordance with law and certificate of ownership of real estate right is obtained;
     3.Permit for the plan of construction project of commodity house is obtained;
     4.Permit for the plan of commodity of commodity house is obtained;
     5.The completed volume of engineering by the investment for the construction and installation of the commodity houses has reached the stipulated standards;
     6.The completion and delivery date of the commodity houses is determined and the construction plan for municipal works, public utility, public construction facilities is practicable;
     7. An agreement for supervising and administrating the money received from advance sale has been signed with a professional supervising and administrating organization engaged in real estates (hereinafter referred to as the supervising and administrating organization); and
     8.A joint pledge for the use of the house is worked out; and a service contract of property management in the early stage is singed with a property management enterprise.
     The stipulated standards of Clause 5 in the above provision shall be drawn up by the Municipal Housing and Land Resources Administration and be submitted to the Municipal People' s Government for approval before implementation.
     Article 33 Application for and Examination and Verification of Advance Sale
     When a commercial house needs to be sold in advance, the real estate development enterprise shall apply to the Municipal Housing and Land Resources Administration of district (county) administrative department of real estate, and submit documents to prove that the application has met the provisions of Article 32 of these Procedures, together with the general plane figure of the commodity house, and the plane figure of every stow of the commodity house.
     The Municipal Housing and Land Resources Administration or the district or county administrative department of real estate shall complete the examination and verification procedure within 10 days after the date of acceptance of the advance sale application. If the application meets the advance sale conditions, a permit for advance sale shall be issued. If the application does not meet the advance sale conditions, a decision on not permitting advance sale shall be made, and the applicant shall be informed in writing thereof:
     For the commodity house that has been approved for advance sale, the date of issuance of the permit for advance sale shall be the date of permission for advance sale.
     Article 34 Advertising of the Commodity Home hr Advance Sale
     The real estate development enterprise can advertise the commodity home for advance sale only after obtaining the advance sale permit of the commodity house.
     The advertisement for advance sale of the commodity house shall carry the number of the advance sale of the commercial house permit of the commodity house.
     Article 35 Conclusion of Advance Sales Contract
     In the advance sale of a commodity house, the real estate development enterprise shall show the advance sale permit of the commodity house to the advance purchaser and conclude with him or her advance sale contact.
     The advance sales contract shall include the contents listed in Clause 2 of Article 16 of these Procedures.
     Article 36 Registration of the Advance Sales Contract for the Record
     The real estate development enterprise and the advance purchaser shall send the advance sales contact to the administrative organ of real estate transactions after it becomes effective. If the advance sales contact does not conform with the stipulated conditions or forma1ities, the administrative organ of real estate transactions shall notify in writing the parties of the contact within 5 days, if the advance sales contract conforms with the stipulated conditions or formalities, the administrative organ of real estate transactions shall turn the advance sales contact over to the registration office of real estate, and the registration office of real estate shall have it registered for the record in accordance with the Regulations of Shanghai Municipality on Real Estate Registration.
     The registration for the record of advance sale contact shall be completed within 5 days after the date of turning-over the advance sales contact bye administrative organ of real estate transactions to the registration office of real estate, and the administrative organ of real estate trade shall notify in writing the parties to the contract to collect the advance sales contract that has been registered for the record.
     Article 37 Collection of Advance Sale Money
     The real estate development enterprise shall collect money from the advance sale of the commodity house in installments according to the progress of the construction of the commodity house. If it is stipulated other wise in the advance sales contract, the stipulation shall be observed.
     Article 38 Supervision of Advance Sale Money
     The money collected form the advance sale by the real estate development enterprise shall be entrusted to the supervising organization for supervision, and it shall be used exclusively for the construction of the commodity house sold in advance.
     The supervising organization shall bear joint liability, if loss to the advance purchaser results from the improper supervision of the money from advance sale.
     Article 39 Alteration of Architectural Design of Commodity House Sold in Advance
     When a commodity house is sold in advance, the real estate development enterprise shall not alter the architectural design without authorization; if it really needs to be altered, the enterprise shall sign an agreement for and alteration of the advance sale contact with the advance purchasers after soliciting their consent and obtaining the approval of the project administrative department.
     If the real estate development enterprise alters the architectural design of the commodity house sold in advance without soliciting the advance purchaser's consent, the advance purchasers are entitled to terminate the advance sales contact and the enterprise shall bear the liability for breach of contract.
     Article 40 Transfer of Commodity House Sold in Advance
     When in advance purchaser needs to transfer the commercial house sold in advance after having the advance sales registered for the record, the advance purchaser shall abide by the following provisions:
     1.If the total price of the commodity house sold in advance is not fully paid up, the advance purchaser shall, after soliciting the consent from the real estate development enterprise, conclude a contract for transferring the commodity house sold in advance with the transferee; or
     2.If the total price of the commodity house sold in advance is fully paid up, the advance purchaser can conclude a contract for transferring the commodity house sold in advance with the transferee and notify the real estate development enterprise in writing thereof.
     The right s and liabilities stipulated in the advance sales contract are transferred along with the transfer of the house sold in advance.
     Article 41 Registration for the Record of Transfer Contract of Commodity House Sold in Advance
     After the transfer contact of the commodity house sold in advance becomes effective, both parties to the transfer shall go through the procedures of registration for the record of the transfer contract in accordance with the provisions of Article 36 of these Procedures.
     Article 42 Re-transfer of the Transferred Commodity House Sold in Advance
     If the transferred commodity house sold in advance is transferred again, the parties to the transfer shall conclude a contact for re-transferring go through the procedures of registration for
     Record in accordance with the provisions of Article 40, 41of these Procedures.
     Article 43 Ownership Transfer Procedures of Commodity House Sold in Advance
     The real estate development enterprise that sells in advance commodity houses shall go through the ownership transferring procedure of the commodity house with the transferee according to the provisions of Article 18of these Procedures after it has registered the ownership of the newly-built commodity house legally and acquired the certificate of ownership of real estate right.
     Article 44 Settling the Increase or Decrease of Construction Area at the Time of Delivery of Commodity House Sold in Advances
     If at the time of delivery of the commodity house sold in advance there exists any difference in the construction area of the house, either more or less than that originally stipulated in the advance sale contract, the following provisions shall be applied;
     1.If the increase or decrease of construction area is caused by all the transferee' s equally sharing of the construction area of the spaces for common use according to Article 27 of these Procedures, or by the error in the field survey by a survey institution with qualification, the total transfer price stipulated in the advance sales contract shall remain unchanged;
     2.If the increase or decrease of construction area is caused by the alteration in the architectural design of the commodity home sold in advance, it shall be settled according to the provisions of Article 39 of these Procedures; or
     3.Apart from the situations listed in Clause 13 of this Article, if the construction area exceeds that stipulated in the advance sale contract, the transferee may refuse to pay for the increased construction area; if the construction area is less than that stipulated in the advance sales contact, the real estate development enterprise shall refund to the transferee the money for the decreased construction shall be observed.

     Chapter IV Transfer of House Construction Project

     Article 45 Conditions of transferring House Construction Project
     The transfer of house construction project shall conform to the following conditions:
     1.The land-use right is obtained through granting, and the granting fee for the land-use rightfully paid;
     2.The land-use right is registered in accordance with the law and certificate of ownership of real estate is obtained;
     3.Pemit for the plan of construction project plan is obtained;
     4.Permit for the project construction is obtained; and
     5.Over 25% of the total investment for house construction is completed.
     Article 46 Application and Examination and Verification of House Construction Project Transfer
     If a house construction project needs to be transferred, the transferor shall apply to the Municipal Housing and Land Resources Administration or district or county administrative department of real estate, and submit the documents to prove that the provisions of Article 45 of these Procedures have been met.
     The Municipal Housing Land Resources Administration or district or county administrative department of real estate shall complete those examination and verification procedures within 10 days after the date of acceptance of the transfer application. If the application meets the transfer conditions, a written approval shall be issued; if not, a decision on its not permitting the transfer shall be made, and the applicant shall be notified in writing.
     Article 47 Conclusion of Transferring House Construction Project
     When a house construction project is transferred, the transferor shall show the transferee the written document of approval for transferring the house construction project, and conclude with him or her a transfer contract.
     Article 48 Procedures of Ownership Transferring of House Construction Project
     The party to the transfer of a house construction project shall go through the ownership transferring procedures in accordance with the provisions of Article18 of these Procedures after the transfer contact becomes effective.
     Article 49 Discharge or Continued Performance of Advance Sales Contact
     If the advance sale of commodity houses in accordance with the provisions in chapter III of these Procedures is made before the transfer of a house construction project, the transferor of the house construction project shall inform in writing the advance purchasers of the commodity house of the matters of the house construction project transfer. The advance purchaser of the commercial house is entitled to discharge the advance sales contract of the commodity house within 30days after the date of receiving the written notice.
     If the advance purchaser of the commodity house does not demand the discharge of the advance sale contact of the commodity house in accordance with the preceding Clause of this Article, the transferee of the house construction project shall continue to perform the advance sales contact of the commodity house.

     Chapter V Legal Liability

     Article 50 Administrative Penalty
     For any act that violates these Procedures, the Municipal Housing and Land Resources Administration or district (county) administrative department of real estate shall impose penalties in accordance with the fo11owing provisions:
     1.For those who violate the provisions of Article 10 of these Procedures and transfer illegally the land-use right, the illegal gains shall be confiscated and a fine of not more than 50% of the illegal gains may be imposed;
     2.Those who violate the provisions of Clause1 0f Article 12 of these Procedures and fail to go through the procedures for granting land-use right and pay the granting he of land-use right, shall be ordered to correct, and the illegal gains shall be confiscated and a fine of not more than 100% of the illegal gains may be imposed;
     3.Those who violate the provisions of Article 13 of these Procedures, and illegal transfer the house built on collectively-owned land, shall be ordered to correct, and the illegal gains shall beJonf1seated, and a fine of not more than 50% of the illegal gains may be imposed;
     4.Those who violate the provisions of Article 33 of these Procedures and fail to obtain the permit for sale in advance, and sell in advance the commodity house, shall be ordered to stop their sale, and their illegal gains shall be confiscated, and a fine of one to three times the amount of he illegal gains can be imposed; or
     5.For those who violate the provisions of Article 46 of these Procedures and fail to obtain the written document of approval for the home construction project transfer, the illegal gains shall be confiscated, and a fine of not more than 50% of the illegal gains may be imposed.
     Those who violate the regulations concerning project administration, advertising administration and price control shall be punished in accordance with the relevant laws, regulations and provisions and provisions by the plan administrative department, industry and commerce administrative department and price control department respectively.
     Article 51 Penalties for Altering, Forging Relevant Certificate or Document
     If come one alters, forges permits for advance sale of commodity house or written document of approval for house construction project transfer, the altered and forged permit or document shall be confiscated in accordance with law by the Municipal Housing and Land Resources Administration or District or County administrative department of real estate, and the case shall be turned over to the judicial organ for punishment in accordance with law.
     Article 52 Punishment Procedure
     When imposing administrative punishment in accordance with these Procedures, the Municipal Housing and Land Resources Administration and district or county administrative department of real estate shall render to the wrong doing party in award of administrative punishment. When collecting forfeited and/or confiscated money, the department concerned shall make out a receipt forfeited orconf1seated property printed uniformly by the municipal finance department.
     The forfeited and conf1seated money shall be turned over to the State Treasury in accordance with the provisions of law.
     Article 53 Reconsideration and Proceedings
     If the penalized party concerned refuses to accept the specific administrative act of the administrative department, he or she can apply for administrative reconsideration or bring an administrative action in accordance with the provisions of the Regulations of Administrative Reconsideration and the Administrative Litigation Law of the People's Republic of China.
     If the penalized party does not apply for reconsideration, nor brings an action, and nor performance specific administrative act, the department that does the specific administrative act can apply to the people's court for enforcement according to the provisions of the Administrative Litigation Law of the People's Republic of China.
     Article 54 Punishment for Administrative Personnel of Real Estate
     If any staff member of the real estate administrative department or the administrative organ of real estate transaction neglects ones duty, abuses ones power, plays favoritism and commits malpractice, his or her work unit or the higher authorities shall impose on him or her administrative punishment; if one' s act constitutes a crime, that person shall be persecuted for his/her criminal liability according to law.

     Chapter VI Supplementary Provisions

     Article 55 Special Provisions for Transfer of State-owned Real Estate
     Transfer of state-owned real estate shall also be made in accordance with the laws, regulations and provisions on the transfer of State-owned properties.
     Article 56 Special Provisions for Transfer of Real Estate within the Scope of Housing Reform
     The sale of publicly-owned residential house and the transfer of publicly owned residential house already sold shall also be made in accordance with the relevant provisions of the Municipal People's Government.
     Article 57 Department Responsible for Interpretation in Application
     The Municipal Housing and Land Resources Bureau shall be responsible for interpreting the application of these Procedures.
     Article 58 Date ofImp1ementation and Annulment
     These Procedures shall become effective on October 1, 2000. The Procedures of Shanghai Municipality on the Transfer of Real Estates shall be repromulgated after appropriate amendments in accordance with the present Decision.

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