Conflict And The Balance Of Interest On The Pre-sale Of The Commodity Apartment System

The pre-sale of the commodity apartment system has been controversial since it has implemented in China in the 1990s. Only because it has also produced a large number of disputes and has exposed many questions while promoted the prosperous and development of our real estate industry. For this reason, Stop the pre-sale of the commodity apartment system has often been suggested. The most important reason for the controversial is that there is conflict of interest between these parties. This paper has analyses the interest structure between three most important parties in the pre-sale of the commodity apartment system, the conflict of interest and the reason that arouse conflict. Tries hard to put forward the proposal to constructs the balanced mechanism.The first part introduced the three most important parties of the pre-sale of the commodity apartment system; they are person in advance, the developer and the commercial bank. It has analyses the complex legal relationship between these parties, as well as the interests of their respective expectations. This system is beneficial for the three parties. This is the premise of existence for the pre-sale of the commodity apartment system. It is also an important reason that some people proposed many times to abolishing this system but it still exists.The second part starts with the performance of the conflicts of interest between the three parties. Then analyses the profound reasons for the conflict of interest. Objectively, the pre-sale of the commodity apartment system itself has some defects which makes unreasonable risk sharing. This is the system deficiencies. Relevant legislation is not perfect all condoned the phenomenon of illegal. This is the legal reason. But subjectively, the main three parties have some responsibility. Either by profit-driven, or is the negligence for protection of rights. Analysis of the causes contributes to constructs the balanced mechanism.The third part is the core of this article. Probes into constructs the balanced mechanism about the pre-sale of the commodity apartment system. Clear the effect that balanced mechanism must achieve is Nash equilibrium. Construction of the interests of balancing mechanism must reflect the principle of fairness, the principle of good faith, the principle of equality, to encourage trade principle and maintaining the transaction security principle. To the question which has been discussed, constructs the balanced mechanism about the pre-sale of the commodity apartment system mainly from institutional and legal aspects. Improving the advance notice registration system, market access and exit mechanisms, the pre-founding regulatory system, the information disclosure system and the punitive damages mechanisms. Fair distribute interests and share the risks between each party. Make the system healthier. And makes the contribution for our country economy's development.