Risk Prevention Mechanism For Commercial Houses Pre-buyers

In recent years, the real estate industry has been gradually becoming an important economic force in the national economy in China. The size of the purchasing power of commercial houses has become a new point of economic growth. The huge purchasing power and high profit of the real estate market have attracted more and more funds to sale of commercial houses from developers. Since its introduction to mainland China in1990s, after more than20years’development, presale of commercial houses has become one of the two main sale patterns (another one is sale of complete apartment) in China’s real estate trade market. It has been playing an important role in promoting China’s real estate market. However, since the subject matter of presale of commercial houses is uncompleted house, buyers bear more risks than that of buying complete apartments. At the same time, serious infringement of consumer rights exists due to imperfect of law and regulations in real estate industry. The number of lawsuits of presale of commercial houses is remaining obstinately high in practice. Therefore, strengthening the protection of buyers’legal rights has important significance in perfecting China’s law and regulations of presale of commercial houses and regulating the market of presale of commercial houses.This paper consists of preface, text and conclusion. The text is further divided into three parts:The first part introduces some legal risks existing in presale of commercial houses in China which are discussed in the form of cases mainly in aspects of malicious fraud and deposit traps in presale of commercial houses market, standard clauses in contract of presale of commercial houses, and the quality of the presold houses.The second part introduces the factors from which the risks result, mainly including the economic strength imparity of the sellers and buyers, the information imparity between the two parties, weak supervision on the developers and imperfects in laws and regulations.The third part gives suggestions on how to build buyers risk prevention mechanism in the presale of commercial houses, mainly including establishing and perfecting information disclosure system in presale of commercial houses, playing full role of national macro-control, and increasing the awareness of the buyers’self-protection.