On Legal Protections Of The Interests Of Prepurchasers In The Presell Of Commercial Houses

Being an important progress made in the estate market in China, to presell commercial houses is the product of the healthy development of market economy in China. But in the real practices of preselling houses, it is not a rare phenomena that some developers, who often take advantage of there status as presellers, violate the lawful rights and interests of prepurchasers by using vicious breach of faith and fraud. This pratice not only harms the lawful rights and interests of prepurchasers but also affects the further development of the estate market in China in an adverse way. In order to protect their lawful rights and interests, prepurchasers cannot expect the developers to consciously keep their word, merely depending on the contracts between them. Therefore, prepurchasers can only seek legal protection to prevent the above practice from happening. The writer of this paper has made a systematic and in-depth study about how to protect the lawful rights and interests of prepurchaser in the preselling of commercial houses from the angle of law. Firstly, the paper discusses the legal status of prepurchasers in the preselling and emphasizes the view that the legal status of prepurchasers as consumers should be confirmed and should be protected especially by law. Secondly, the paper makes an in-depth analysis about the major practices of breaching the interests of prepurchasers in the process of preselling commercial houses and the causes of these practices. It is pointed out in the paper that this phenomena results from the imperfection of the related law system in our country. Then, the paper also discusses how to prevent these cases of vicious breach of faith and fraud from happening and how to regulate the estate market. The writer also brings forward her thoughts and suggestions using for reference the reasonable legislation and successful practices in some countries and areas. Finally, the paper studies the application of punitive damages to developers who violate the lawful rights and interests of prepurchasers on purpose in preselling and advances some suggestions about the system devised to regulate the estate market.