Opinions of the Ministry of Housing and Urban-Rural Development and Other Authorities on Strengthening the Administration over the Real Estate Agencies to Promote the Healthy Development of the Industry

　　Jian Fang [2016] No.168

　　July 29, 2016

　　Departments of housing and urban-rural development (commissions of construction or housing and land resources management bureaus), development and reform commissions, price bureaus, communications administrations, administrations for industry and commerce (market supervision and administration authorities), and local offices of the China Banking Regulatory Commission of all provinces, autonomous regions and municipalities directly under the Central Government, the Shanghai Head Office, all branches and operation administrative departments, and all central sub-branches in (provincial) capital cities and sub-provincial cities of the People's Bank of China, and offices of the State Administration of Taxation and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed in the state plan,

　　The real estate agency industry is an important part of real estate industry. In recent years, the real estate agency industry has developed rapidly and played an important role in enlivening the market and promoting transactions. However, there are still such issues as non-standard operations, infringement of the legitimate rights and interests of the masses and disturbances of the market order existing in certain agencies and their employees. In order to strengthen the administration over real estate agencies, protect the legitimate rights and interests of the masses, and promote the healthy development of the industry, the following opinions are hereby put forward:

　　I. Regulating the Activities relating to Agency Services
　　1. Regulating the undertaking of business by agencies. When accepting a business commission, an agency shall sign a written contract on real estate agency services with the client and keep the contract on file for future reference, and in such contract, the parties concerned shall stipulate the contents on the verification of housing resource information. An agency shall not provide agency services for affordable housing which does not meet the requirements for transactions or housing which is prohibited from being traded.
　　2. Strengthening due diligence of housing resource information. Before releasing housing resource information to the public, an agency shall verify the information about the property right of the housing, the identification certificate of the client and other materials, apply for a verification of housing resource information with the competent department of real estate upon consent of the client, and prepare a statement on housing status. The statement on housing status shall indicate the information on verification of housing resource information, the number of the contract on real estate agency services, the location, area, property right status, listed price and property service charges and pictures of the housing, and other important matters which shall be noted.
　　3. Strengthening the administration over the release of housing resource information. The housing resource information released by an agency shall be true, complete and accurate, and the same housing resource information released via different channels including the store and website shall be consistent. An employee of a real estate agency shall release housing resource information on the website and via other channels by using his/her real name. An agency shall not release the housing resource information without the written authorization of the property owner or conceal the information including mortgage that may has impact on the transaction of the housing. For any housing that has been sold or rented out, the agency facilitating such transaction shall, within two working days as of the date on which the sales contract or lease contract on the housing is signed, remove the information about such housing from the release channels including the store and website; for any housing with regard to which the commission has been canceled by the client, the agency concerned shall remove the information about such housing from all release channels within two working days.
　　4. Regulating the activities relating to the prices of agency services. Charges for real estate agency services shall be determined by the parties concerned through negotiations according to service items, service costs, service quality and the status of market supply and demand. An agency shall, in strict accordance with the Price Law of the People's Republic of China, the Provisions on Clearly Marking the Prices of Commodities and Services, the Rules on Sales of Commercial Houses at Clearly Marked Prices and other laws and regulations, indicate all its service items, service contents, charge methods and standards at the prominent place of the business premises with each service item being priced separately. Where an agency provides such services as the transfer of property right and the application for loans on behalf of the client, such services shall be chosen by the client on a voluntary basis and stipulated in the contract on real estate agency services. An agency shall not implement price-related illegal activities in violation of the Price Law of the People's Republic of China and the Anti-monopoly Law of the People's Republic of China.
　　5. Regulating the business cooperation between an agency and a financial institution. Where an agency provides the service of application for housing loans on behalf of the client, the financial institution shall be chosen by the client independently, and such credit policies for real estate as local conditions for loans, minimum ratio for down payment and interest rate shall be provided for the client for reference. No agency may compel the client to choose the financial institution appointed by it, or bundle financial services with other services, or provide independently or with other agencies by cooperation such illegal financial products and services as loans for down payment, or charge rebate and other expenses in normal or disguised form from the financial institution. No financial institution may cooperate with any agency which has not been registered at the competent department of real estate for record-filing to provide financial services.
　　6. Regulating the tax-related services of agencies. Where an agency and its employees assist the parties to a real estate transaction in handling tax declaration and other tax-related matters, they shall truthfully inform the parties of tax provisions and preferential policies and assist the parties in paying the tax with sincerity and in accordance with the law. Where the agencies registered at the competent department of real estate for record-filing and the employees obtaining professional qualifications have a good credit record in assisting the parties to a real estate transaction in handling tax declaration and other matters, the tax authority shall provide convenient and efficient services for them. Where an employee handles tax-related business, he/she shall take the initiative to show his/her work card indicating such information as his/her name, the name of the agency and his/her national professional qualifications. No agency or employee may induce, instigate or help the parties to a transaction to sign open and secret dual-priced contracts or quote a price lower than the transaction price; or help or instigate the parties to a transaction to forge the certificate to gain tax preference by cheating; or resell tax reservation number for profit.

　　II. Improving Industrial Administration Systems
　　7. Providing the convenient and fast service of housing resource verification. A competent department of real estate at the city or county level shall provide the service of housing resource verification for the property owner of the housing and the agency registered for record-filing, issue the two-dimensional code for housing resource verification, and update the property right status in real time. Active efforts shall be made to promote the system of signing contracts on real estate agency services on the internet and unified number management. The number of a contract on real estate agency services shall be associated with the two-dimensional code for housing resource verification in order to ensure true housing resources and commissions. An agency shall clearly indicate the two-dimensional code for housing resource verification in the housing resource information released.
　　8. Fully promoting the system of signing transaction contracts on the internet. A competent department of real estate at the city or county level shall, in accordance with the requirements of the Circular of the General Office of the State Council on Promoting the Stable and Healthy Development of Real Estate Market (Guo Ban Fa [2010] No.4), fully promote the construction of the system of signing contracts on stock house transactions on the internet. An agency registered for record-filing may sign a contract on stock house transaction on the internet. A city or county that has established a system of signing contracts on stock house transactions on the internet shall further improve the system, and achieve a complete coverage of the whole administrative region and the digitization of the files for property rights under transaction; and a city or county that has not established such system shall complete the system construction and put it into use in accordance with the provisions. The Ministry of Housing and Urban-Rural Development will carry out the special supervision and inspection of the construction and use of the system of signing contracts on stock house transactions on the internet.
　　9. Improving the supervision system for transaction funds. A competent department of real estate at the city or county level shall establish and improve its supervision system for stock house transaction funds. An agency and its employees shall not collect or pay transaction funds through any account other than that under supervision, or embezzle or misappropriate the transaction funds. A city or county that has established its supervision system for stock house transaction funds shall assess the implementation of such system and continuously optimize the supervision methods; and a city or county that has not established such system shall promulgate supervision measures before December 31, 2016, and specify the supervision system and organize the implementation thereof. A department of housing and urban-rural development at the provincial level shall supervise and inspect the implementation of the supervision system for transaction funds in the cities and counties within its jurisdiction, and report the information on such implementation to the Ministry of Housing and Urban-Rural Development before December 31, 2016.
　　10. Establishing a system of regularly releasing transaction prices and rents of housing. A competent department of real estate at the city or county level shall, in concert with the competent department of price, strengthen the monitoring and analysis of transaction prices and rents of housing, instruct housing transaction institutions, price monitoring institutions and other institutions to establish the regional system of regularly releasing transaction prices and rents of housing, and reasonably guide market expectations.

　　III. Strengthening the Supervision over the Agency Market
　　11. Strictly carrying out the record-filing system for agencies. An agency and its branches shall handle the registration at the competent department of real estate for record-filing as required. An agency providing real estate agency services through the internet shall handle the website registration at the local competent department of communications at the provincial level and the registration at the competent departments of real estate at the city and county levels at the places where such services are provided for record-filing. Competent departments of real estate, communications and industry and commerce administration shall establish a cooperating mechanism for the exchange of information on the industrial and commercial registration and the record-filing of agencies on a regular basis, and announce the lists of agencies that have been registered and have not been registered for record-filing on the website of the government and other media in order to remind the masses to prevent transaction risks and prudently select agencies.
　　12. Actively promoting a real-name service system for employees. When handling the record-filing, an agency shall provide the information of all the employees engaged in the brokerage business in the agency. The employees of an agency shall be subject to the real-name registration at the competent department of real estate at the city or county level. The employees of an agency shall wear a work card indicating such information as their names, the name of the agency and their national professional qualifications when providing services. Competent departments of real estate in all regions shall actively implement the professional qualification system for professionals in real estate agency, encourage employees of agencies to participate in professional qualification examinations, and receive continuing education and training, so as to constantly enhance their professional ability and service level.
　　13. Strengthening industrial credit administration. A competent department of real estate at the city or county level shall, in concert with the competent departments of price, communications, finance, taxation and industry and commerce, accelerate the construction of the credit administration platform for real estate agency industry, exchange the credit records of agencies and their employees on a regular basis, record the basic information, good and bad activities of agencies and their employees in the credit administration platform in a timely manner, and publicize the same to the public. The relevant departments shall continue to improve the systems of the "red list" for accredited models and the "black list" for seriously discredited subjects, and establish and improve a system of offering joint incentives to those acting in good faith and imposing joint punishments on those acting in bad faith. Where a honest and trustworthy agency and its employees handle such business as the verification of housing resource, signing of contracts on the internet, and application for loans on behalf of clients, convenient service measures including a "green channel" may be carried out according to the actual situation; the frequency of inspections may be optimized in routine inspections and special inspections; and honest and trustworthy agencies may be given priority when an agency is selected to operate and manage the public rental housing invested by the government. For an agency or its employees violating the laws or regulations, the relevant departments shall, on the basis of punishing and assessing the dishonest activities in accordance with the laws and regulations, take joint disciplinary measures against seriously dishonest activities through information sharing, include the seriously dishonest subjects in key targets under supervision and restrict their engagement in various real estate agency services. The decisions on the illegal activities of agencies made by the relevant departments and the information on the above mentioned "black list" shall be made public in accordance with the law through the announcement system for credit information of enterprises. For a seriously dishonest agency, its legal representative, person in charge and employees who take direct responsibility for such dishonest activity, measures for prohibiting such subjects from entering into the market and industry shall be jointly implemented. A national credit management platform for real estate agency industry shall be gradually established and included in the national social credit system.
　　14. Enhancing the self-discipline management of the industry. The role of industry associations shall be brought into full play, and the local industry associations shall be established and improved. An industry association shall establish and improve the regulations and rules for the industry, the code of professional ethics, and the rules for dispute settlement, promote the quality inspection of the industry, disclose the information relating to inspection and punishment, and enhance its functions in such aspects as industrial self-discipline, supervision, coordination and service. Industry associations at all levels shall actively carry out the commitment activity of industrial integrity service, supervise and urge the compliance of the employees of real estate agencies with the code of professional ethics, protect the rights and interests of consumers, and put forward opinions and suggestions on the development of the industry to the competent departments in a timely manner.
　　15. Establishing a multi-departmental linkage mechanism. The competent departments of real estate, price, communications, finance, taxation and industry and commerce at the provincial level shall strengthen the supervision over and guidance for the work carried out by such departments at the city and county levels, and establish a linkage and supervision mechanism. The competent department of real estate at the city or county level shall be responsible for the administration, organization and coordination of real estate agency industry, and shall strengthen the administration over agencies and their employees; the competent department of price at the city or county level shall be responsible for the supervision of activities relating to the prices of agencies, and shall give full play to the role of the price supervision platform with 12358 as the hot-line telephone number for informants, handle complaints and reports in a timely manner, and investigate and punish price-related illegal activities in accordance with the law; the competent department of communications at the city or county level shall be responsible for the administration over websites for real estate agencies, and shall deal with the illegal websites for real estate agencies in accordance with the law; the competent department of industry and commerce administration at the city or county level shall be responsible for the industrial and commercial registration of agencies, and shall investigate and deal with those agencies which have not applied for a business license but are engaged in the agency business in accordance with the law; the supervision departments of finance and taxation shall, according to the division of responsibilities, cooperate with each other in effectively carrying out the administration over real estate agency industry.
　　16. Enhancing the industrial supervision and inspection. The competent department of real estate at the city or county level shall strengthen the building of the administration team for real estate agency industry, establish and improve such systems as routine inspection and complaint acceptance in concert with the relevant departments, vigorously popularize the supervision via random inspections, establish a "double-random" inspection mechanism, and carry out joint inspections. Any agency or employee that commits any illegal activity shall be ordered to make corrections within a prescribed time limit, and subject to a fine or other administrative penalties, and such illegal activity shall be recorded in the credit files; the qualification for signing contracts on the internet of an agency shall be cancelled as required if such agency commits any illegal activities. Any agency that seriously infringes upon the rights and interests of the masses or disrupts the market order shall be removed from the market by the competent department of industry and commerce administration in accordance with the law.