The Legal Regulation On Actions Of Real Estate Brokerage

Since the1990s, as China’s rapid economic development, people’s increasingdemand for real estate, the real estate market in short supply, real estate transactionsmore frequently, more diversified form of trading, process is also more complicated.In the processes of real estate transactions, houses for sale by (or lessors) withHousing transferee (or lessee) the parties will only disclose information to theiradvantage, choose to conceal information against themselves, resulting in both sidesdifficult to understand their information.In this context, the real estate brokerage industry came into being. Realtors havea large number of market information, with profound professional knowledge, legalknowledge, you can clearly grasp the pulse of the real estate market, real estatebrokerage company, with its expertise, able to lower the cost of the information fromthe mass search, filter out the right information, in large part to make up for thedifficulties of real estate transactions.Although the real estate brokerage industry brings settlement of houses for saleby (or lessors) with Housing transferee (or lessee) the information asymmetryproblem in a great degree, but it led to new information asymmetry, mainly in realestate brokerage firms with information asymmetry between the principal, real estatebrokerage contract information asymmetry. This gave rise to real estate industry offraud, breach of contract and other cases a lot happening.In order to solve the real estate brokerage business due to informationasymmetry caused by market failure, the initial establishment of the real estatebrokerage industry legal regulatory system, including access system, financialregulatory system, commission management system and information disclosuresystem. The regulatory regime for the regulation of the development of the real estatebrokerage industry has played a positive role, but there are also legal rank is not high,decentralized system and other issues.The perfection of the real estate brokerage industry legal regulation should startfrom the following four aspects: To improve the access threshold for real estatebrokerage company and regulatory standards, improve information about the realestate brokerage industry regulation, strengthen the implementation of the real estatebrokerage firm punishment for moral hazard and set up real estate brokerage margin system.