Some Basic Knowledge on Buying Property in Beijing

Before September 1st 2002, a foreigner could only buy the property which had got the overseas sale certificate in Beijing . The situation has been changed since the day when the restriction was moved away. This means, generally speaking, there has been no more special restriction on foreigners buying property in Beijing.

Since real estate industry has been booming in these years in Beijing, it offers the real estate buyers many opportunities to buy new developments, especially under the circumstance that most of the later developed properties are more mature and more reasonable priced. On the other hand, there're still some used or relatively old properties that can be very hot in the second hand transaction market due to their high quality, good management and high return rate on investment, such as some villa property projects along Jingshun Road and Airport Expressway as well as some apartments in Chaoyang District.

No matter whether he/she is a foreign buyer or local buyer, a buyer can buy through agent or buy directly from the developer or individual owner on his/her own. If a foreign buyer is not familiar with the immature and complicated real estate market of Beijing and may have the language problem at the same time, he/she may need to consider using the service of famous, large or middle sized, experienced agents that have got the agency license. In all most all the situation, real estate developers or individual owners will pay commission fee to agents unless their property is sold pretty well and they wouldn't like to pay commission fee to agents. In this case, agents may need to charge commission fee from the buyer.

After buying a property, a foreign buyer can get the title certificate of the purchased property. However, the buyer may need to know that although he/she has got the ownership of the property, the land which the development is constructed on has limited period of time for use. For residential purpose development, this time period is 70 years. For office purpose development, the time period is 50 years. For retail purpose development, the time period is 40 years.

Please make sure that the developer has already got the five certificates before you can make any decision on buying a new property.

The five certificates are, 1. Guoyou Tudi Shiyong Zheng-which is state land use right certificate. For residential purpose development, the state land use right is 70 years; For office purpose development, the state land use right is 50 years; For retail purpose development, the state land use right is 40 years; 2. Jianshe Yongdi Guihua Xuke Zheng- which is construction land planning certificate; 3.Jianshe Gongcheng Guihua Xuke Zheng- which is construction project planning certificate; 4.Jianshe Gongcheng Kaigong Zheng-which is construction project commencing certificate; 5.Xiaoshou Xuke Zheng-which is sales certificate.

Steps to Buying New Property

·Step 1
Sign "Beijing Commodity Housing Purchase Offer"(Beijingshi Shangpinfang Rengoushu-in Chinese)and pay down payment(usually RMB20000-30000yuan and a notarised Chinese name may be required);

·Step 2
Sign “Beijing Commodity Housing Pre-sale Contract” (Beijingshi Shangpinfang Yushou Hetong-in Chinese) and pay the first term of payment(no less than 30% minus down payment and in most situation within 7 days after signing purchase offer);

·Step 3
Conduct contract registration and pay the outstanding amount of 70%(in most situation within 1 month after signing "Beijing Commodity Housing Pre-salel Contract").

·Step 4
Conduct the procedure of borrowing money from bank (most of the state-owned banks only provide mortgage service to domestic buyers, some foreign banks and Chinese stock-holding banks may provide mortgage service to foreigner buyers);

·Step 5
Conduct the procedure of property acceptance;

·Step 6
Conduct the title transfer procedure;

·Step 7
Conduct the procedure of getting title certificate.