For China real estate buying, you should follow some general procedures as below, if you are foreign resident in China:
Step 1
Obtain proof of your one year residence in China from the local Municipal Bureau of Public Security.
Step 2
Once you or your agent find a suitable property, the next step is to submit an official offer letter (through the agent if used). The letter sets out the agreed price, payment schedules and other conditions of purchasing the targeted house. A deposit of 1% of the agreed selling price should be paid to the seller.
Step 3
The seller and buyer will then draft and sign the official sale contract and it has to be notarized if the buyer is foreign.
Step 4
This step is unique for foreign buyer. The buyers are supposed to go to your local Foreign Office for you to have the purchase approved by the government.
It is important to note that if a mortgage is needed, the buyer will need to secure a loan by taking your signed and notarized contract as well as any other document that is required by the bank. Depending on the specific rules of the bank, buyer can take their loan either in RMB or in Foreign Currency. They also need to pay the deposit and an initial 30% of the selling price as a down payment to the seller in terms of RMB.
Step 5
Application is made to the government Deed and Title office for transfer of the deed from the seller to the buyer, on payment of the relevant taxes and fees. Before this can be done, the current owner must pay off any mortgage that exists on the property. This process can take several weeks to complete. The ownership certificate is then issued, and the buyer pays the outstanding 70% of the purchase price and takes possession.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com.
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