Shen Yufeng, a lawyer with Guangdong Guohui Law Firm, analyzes three typical cases emerging after the implementation of the new regulation on housing purchase.
Case 1
Question: With both holding Shenzhen hukou (permanent residence permit), Liang and her husband are legally allowed to own no more than two homes in the city under the new regulation introduced early last week by the city government. The couple already own two apartments. They signed a contract with a real estate agent during the National Day holidays to buy a third apartment. Under these circumstances, can they still complete the purchase?
Shen: Definitely not. According to the new regulation effective Oct. 1, a family with Shenzhen hukou who have two properties are prohibited from buying a third property. The purchase contract with the agent will be considered invalid.
Case 2
Question: Mr. Lei bought two apartments for investment in 2008. Both have been sold. Lei now owns one apartment where he lives. Can he buy another apartment?
Shen: If a family with Shenzhen hukou owned two or more apartments but has only one left after selling extra apartments, the family is now still eligible to buy one more apartment, new or pre-owned. A non-hukou family who owned two apartments but had sold both would also be allowed to buy another.
Case 3
Question: Zhou paid a deposit to an agent and signed a contract before Sept. 30. However, the agent refused to return Zhou s deposit when the contract became invalidated following the new curb on housing purchases. The agent was also demanding compensation from Zhou for the breach of contract. Zhou had no intention on breaking the contract and believed his deposit should be returned.
Shen: A buyer should not be made liable for the invalidation of a housing purchase contract if it is caused by a new regulation. When a dispute occurs, the two parties can either take the matter to court or resolve it by mediation. (Li Hao)
