Travel Reference
In-Depth Information
planning certificate, a construction project planning certificate, a construction project com-
mencing certificate, and a sales certificate.
Make sure you check the authenticity of all paperwork and that the seller has the legal
right to sell the property. It's recommended that you engage a reputable lawyer to do this.
When it comes time to get the deed changed to your name, this is another harrowing
waiting game. Expect to sit in a cacophonous hall for hours upon end, waiting for your
number to be called. If all the paperwork you've brought with you is in order, you'll need to
come back in a few days to collect the deed, though the wait this time will be a little briefer.
After you have bought a property, you may have the deed for it, but the land is only on
loan. For residential buildings the land has a term of 70 years, for office developments its
50 years, and for entertainment or retail properties it's 40 years. If you take over a property,
the period of time is transferred to you, not renewed. So if the previous owner had it for 10
years, you now have it for 60.
This is not an issue that many people seem to be worried about, however. The law is too
new to have had an impact yet, and many speculate that in most cases it will just be renewed
when the time comes, probably with some kind of tax or fee attached.
Deposits are typically around 25-50 percent of the purchase price, and commissions around
1-3 percent of the purchase price. To keep your agent on task to the very end, it's advisable
to hold off on paying the entire commission until the deal is completely finalized.
You can use your own bank back home or a local bank to take out a mortgage. While
local banks don't have the pre-approval process, their interest rates can be much higher
than what you'll be able to get in your own country. If you do need to use a Chinese bank,
however, Citibank and HSBC are often successful options for foreigners, and mortgages
can usually be done in U.S. dollars, Hong Kong dollars, or RMB. Your employer or your
real estate agent may also have an existing relationship with a given bank, which is also
worth investigating.
Once you have finalized the payments as agreed and have the deed in your hands, it's time
to move in. Property management fees will need to be paid, and this usually works out at
