Housing contract affected by new housing rules

housing contract affected by new housing rules3,000 housing contracts were affected in Shenzhen when the new rules restricting home purchases took effect last October 1, that limits the number of homes or properties one family can purchase.

The rules stated that hukou holders can buy two properties and non hukou holders can only purchase on property. This might create conflicts with buyers not meeting the conditions but have already signed contracts to purchases homes or properties, due to this new restrictions 20 percent of the recent contracts will be voided.

A real estate agent said that Shenzhen property developers might lose hundreds if not millions of yuan if the contracts will be invalid, buyers will also lose millions in deposits. Developers now fear on the potential losses they might incur they are now seeking advise from the real estate association to ask for changes to the new rules.

Sellers are now consulting lawyers if they can keep the deposits paid by buyers who are under the new rules that cannot purchase the property anymore, but the new rules took precedent and requires contracts to be abandon and deposits returned to the buyers.

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