Research On The Presale Of Commercial Apartment

In recent years, as a form of commercial housing sale, the presale of commercial apartment is widely used and promotes the development of real estate market in China. However, the drawbacks of presale is increasingly prominent. When the China Central Bank issued Financial Report of Real Estate in 2004, which suggested that cancel the existing pre-selling commodity apartment system and stop selling uncompleted house, the discussion about the retention or abolition of the commercial housing pre-sale system is continued. The experts and scholars have different point of views on it. Because the exploitation of real estate needs large capital and long turnover period, the presale of commercial apartment, which was initiated by Hongkong tycoon Huo Yingdong, has been established and developed under a serious short age of supply of commercial housing and lack of construction funds,and now it becomes a principal way of commercial housing sale. In light of practice,the system of the commercial housing sale plays an important role in the development of real estate on accelerating capital turnover,incase efficiency in the use of funds and reduce development costs. However, many troubles arise in housing market such as housing prices rise too fast, market management chaos, housing market abnormal develops, and so on in recently.Based on the research of the commercial apartment pre-sale system theory, this paper is analyzing the legal relations and mutual interest conflict among the parties in the commercial apartment pre-sale and combined with other countries and regions in the legislative reference. To sum up the inadequate protection of China's existing legal system on the commercial apartment pre-sale parties, this paper discusses on how to perfect the commercial housing pre-sale system from prevention in before and relief after this two aspects,in order to contribute to the healthy development of China's commercial apartment pre-sale market. This paper is composed of four parts.The first part defined the conception, characteristics and nature of the commercial apartment presale system. This part analyzed detailed, compared with some similar concepts, the conception of presale. Explained the peculiar legal characteristics, compared with the general trading legal relationships. This part also recommended the legal subjects'status and roles, and there is a brief overview of the presale housing contract.The second part compared the system of the HongKong region and the United States. The presale of commercial apartment was initiated by Hong Kong Li Xing Estate Company, and established as a legal system. The success of Hongkong real estate market made more achievement form legislation to judicatory than past. The regulation to housing presale is relatively loose in the United States, and the presale accounts for a high proportion of the house sales. The housing presale system promotes the development of USA real estate market but no drawbacks appear. The reason is worth considering. The third part, explored the problems and reasons that existed in the system ofour country. The housing presale system appears different degree of problems and disputes in the legislation and practical operation, and purchasers are under the high market risk. This part analyzes the reasons and procedure of the problems and disputes.In the last part, put forwards pacify proposals for the perfect of the commercial housing presale system. The point of view is to strengthen legal supervision and regulation, enhance the punishment, enlarge the real estate developers'area of responsibility, protect the lawful right of the purchasers. First of all, establishing a strict access and withdrawal system of the presale market is necessary. Second, establish the financial regulatory system. The third, explore the subject scope of the defaulting party's punitive compensation. In addition, put forwards the suggestion to protect the right of purchasers in the form of bank guarantee, and to emphasize the important role of regulation of laws.