Hunan Provincial Department of Housing and Urban-Rural Development interprets the "Hunan Provincial Urban Real Estate Development and Management Measures"
2024-08-27
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1. Background
Since its promulgation and implementation in 2006, the Hunan Province Urban Real Estate Development and Operation Management Measures (hereinafter referred to as the Measures) have played a positive role in strengthening real estate development and operation management, regulating the order of the real estate market, and safeguarding the legitimate rights and interests of operators and consumers. However, with the rapid development of the economy and society, some new situations, new problems, and new contradictions have emerged in real estate development and operation. The state has revised relevant laws and regulations in recent years. For example, the State Council revised the "Regulations on Environmental Protection Management of Construction Projects" and cancelled the special environmental protection acceptance. The Ministry of Housing and Urban-Rural Development revised the "Regulations on the Qualification Management of Urban Real Estate Development Enterprises" and cancelled the qualifications of third-level, fourth-level and provisional-level development enterprises. In order to maintain the unity of the legal system and promote the healthy development of the real estate industry in our province, it is necessary to revise the Measures.
II. Revision Process
The Measures were revised under the leadership of the Provincial Department of Housing and Urban-Rural Development. In accordance with the work arrangements of the 2024 legislative plan of the Hunan Provincial People's Government, the Provincial Department of Housing and Urban-Rural Development and the Provincial Department of Justice formed a drafting working group, solicited written opinions from some provincial departments and municipal and prefectural people's governments, conducted grassroots legislative research in three cities and prefectures in the province, and discussed and improved them at expert seminars and department coordination meetings. On June 24, 2024, it was reviewed and approved at the Standing Meeting of the Provincial Government, and on July 5, 2024, the Hunan Provincial People's Government Order No. 321 was issued, and it will be officially implemented on August 1, 2024.
III. Main contents of the revision
The Measures consist of 30 articles, with the following major revisions:
(I) Delete the provisions on the qualifications of real estate development enterprises. In order to avoid conflicts with the "Regulations on the Management of Qualifications of Real Estate Development Enterprises" revised by the Ministry of Housing and Urban-Rural Development in 2022, delete the relevant contents of Articles 6, 7, 8, 10, 11 and 12 of the original "Measures" on the "Provisional Qualification Certificate" of real estate development enterprises; delete the relevant contents of Articles 7 and 8 of the original "Measures" on the third and fourth level qualifications of real estate enterprises; and delete the penalty provisions of Article 35 of the original "Measures" on non-compliance with the prohibition of renting, lending and transferring the "Provisional Qualification Certificate".
To avoid duplication, the relevant contents of Article 7 and Article 8 of the original "Measures" regarding the application and verification of the first and second level qualifications of real estate enterprises have been deleted; the relevant contents of Article 13 of the original "Measures" regarding the cancellation and change of real estate enterprise qualifications have been deleted; and the penalty provisions of Article 35 of the original "Measures" regarding non-compliance with the provisions on changes in qualification certificates have been correspondingly deleted.
(II) Delete the penalty provisions for engaging in real estate development and operation without obtaining a qualification certificate or exceeding the qualification level. Article 34 of the State Council's "Regulations on Urban Real Estate Development and Operation Management" states: "If a person engages in real estate development and operation without obtaining a qualification certificate or exceeds the qualification level, the real estate development department of the people's government at or above the county level shall order him to make corrections within a time limit and impose a fine of not less than RMB 50,000 and not more than RMB 100,000; if he fails to make corrections within the time limit, the business license shall be revoked by the industrial and commercial administration department." It stipulates the legal liability for engaging in real estate development and operation without obtaining a qualification certificate or exceeding the qualification level. In order to avoid duplication, the same content in Article 34 of the original "Measures" is deleted.
(III) Modify the provisions on completion acceptance of real estate development projects. According to the "Implementation Opinions of the General Office of the State Council on Comprehensively Carrying out the Reform of the Approval System for Engineering Construction Projects" (Guobanfa [2019] No. 11), the special acceptance of real estate development projects by natural resources, housing and urban-rural development, civil air defense and other departments will be adjusted to joint acceptance to reduce the burden on enterprises. Article 12 of the "Measures": "After the real estate development project has been completed and meets the various completion acceptance conditions stipulated by laws and regulations, the real estate development enterprise shall apply for joint acceptance in accordance with the regulations. The natural resources, housing and urban-rural development, civil air defense and other departments of the people's government at or above the county level shall do a good job in the relevant work of joint acceptance in accordance with the division of responsibilities."
(IV) Strengthen the supervision of pre-sale funds. To prevent new risks, we will strictly control the supervision of pre-sale funds and increase the supervision regulations of pre-sale funds. Article 17 of the Measures states: "The competent departments of housing and urban-rural development shall strengthen the supervision of the proceeds from the pre-sale of commercial housing and ensure that the proceeds from the pre-sale of commercial housing are used for the construction of relevant projects in accordance with the law. For commercial housing under construction that has not obtained the pre-sale permit for commercial housing, real estate developers shall not charge any fees to the reservation holder."
