China real estate guide and Property Classifieds

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Important information to note when buying a property in china.

As the Chinese real estate market was only established in the mid 1990s the process could seem a little confused.  Having local legal representation before even beginning your search in addition to the services of a licensed real estate agent would be recommend, as there are many conflicting laws and regulations. China’s legal system combines common law and continental legal systems with the outlines covering the resale of estate to foreign individuals or corporations come from central government as well the local authorities. Properties available for purchase to foreign investor's is restricted to certain demographics and the already conflicting laws are continually changing to curb the increasing house prices.  Depending on the specific city or area in China that an investor is interested in for his property purchase there may be certain restrictions placed on the type of property available to be purchased. The Chinese government created a property boom when they allowed freehold ownership of property in China back in the 1990s  they have subsequently been forced to tighten every aspect of their control on China’s property market. They have done this in a bid to restrict fast growth and to promote sustainability within the real estate market, but it does mean that rules keep changing and an investor should keep abreast of developments in China before committing to a particular city or region in case a government’s change of mind that could reduce or restrict the potential profitability of an investment. For example flipping property's of plan in China has been slowed with a high rate capital gains tax that will hit those who resell their properties within a few of years of purchase the hardest. Overseas investors buying property in China can do so by proxy by legally authorising a third party in China to act on their behalf. Granting power of attorney to a local lawyer can do this. Purchase requirements: A non-Chinese property investor will need a notarised Chinese name for the purchase; this can be done at a notary’s office in china or the Chinese embassy in their home country. A property investor should consider the following additional taxation expenses, a three percent stamp duty, two percent maintenance taxation one and a half percent contract tax 0.1 percent stamp duty for a resale property. Once a suitable property has been located, the agent will negotiate on the buyer's behalf to agree upon a purchase price, all parties then sign the Customer Confirmation Agreement and a deposit is paid to the agent who holds it until all conditions have been met. The Property Purchasing Registration Form with the Property Selling Registration Form have to be completed and filed at the Realty Transaction Department with the Property Ownership Certificate a date will be given to the seller and purchaser for the official Realty Transfer Notice for the finalization of the transaction at this stage the balance and fees and the investor can officially take ownership.