China - utopialand/Utopia GitHub Wiki
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Capital: Beijing
Official Language: Standard Chinese
National Intellectual Property Administration, PRC (CNIPA)
Mr. SHEN Changyu
Head Commissioner
Email: [email protected]
Telephone: (86 10) 62 08 31 14
Website: http://english.cnipa.gov.cn/
Address: 6, Xitucheng Lu, Jimenqiao Haidian District. 100088 Beijing
Depends on if you are looking to sell domestic real estate within China (you are physically there) or International real estate to the Chinese (you can be physically in China or International). If the latter, please skip to the second half of reply.
Being a property agent in China is a little bit different than being a property agent in other countries. The main difference (and problem) is that there is no national or local level licensing entity and agents are not required to be licensed in order to sell/transact properties. Agents are commonly referred to as 中介 "Zhong jie" which roughly translates to "middle person" and are looked upon how we in the United States would look at used car salesmen.
With this comes many problems, but the bulk of it is no set of ethics/moral/business practices that agents follow (teamed up with the huge grey area for what is/is not legal) causes many problems with agents stealing clients, property owners/buyers finding ways to get rid of the agents in between, etc.
China also does not have a central Multiple Listing Service and sellers normally will approach multiple brokerages/agents on an open listing type arrangement (whichever broker/agent brings the buyer, is the one that ultimately will earn the commission).
Due to the above issues/problems, if you are in China and wish to sell real estate, it is wise to join a larger company/franchise that is not only more organized, but also normally an international brand that adheres to a set of ethics/morals/business practices. This includes: Century 21, Homelink, Sothebys, RE/MAX, etc.
It helps to be based in an area that Chinese are already have purchasing demand. This includes areas that have Chinese Communities (华人区 "Hua Ren Qu"), Good School Districts (学区房 "Xue Qu Fang"), and Affluent Communities (富人区 "Fu Ren Qu").
- Current hot spots include
- United States (San Francisco Bay Area/Silicon Valley, Los Angeles And Orange County, Manhattan New York, Seattle/Bellevue/Kirkland...)
- Australia (Melbourne, Sydney...)
- England (London)
- The key to be able to work with Chinese is to have both local partners (those that can speak Chinese language):
- marketing pieces (translation)
- to before and during the purchasing process
- to help after the purchasing process (enrolling in schools, attorney referrals, accountant referrals, etc).
- There are multiple ways to gain exposure to potential Chinese buyers/investors, this includes:
- networking with other brokers/agents (and other industry professionals such as attorneys or accoutants) that work with Chinese clientele
- attending Asian and Chinese networking organizations and events
- attending real estate, immigration, and/or luxury trade shows in China
- advertise listings on Chinese listing portals (Soufun/Fang.com, Juwai.com, etc)
- advertise listings in local Chinese language newspapers or magazines
- create partnership relationships with Chinese companies that are in real estate, immigration a, wealth management, etc industries.
To sell a property, local and foreign owners, including Hong Kong residents, are advised to assign a licensed estate agent to handle the transaction. The buyer, seller and agent have to sign the sale and purchase agreement, although the buyer and seller can still enter into an agreement without involving an agent. A sale and purchase agreement stipulates the rights and responsibilities of each party, [such] which tax must be borne by which party, transaction price, payment terms, liability for breach of contract, [among]. Under a three-party agreement, the buyer pays a deposit (less than 20 per cent of the consideration value) for the purpose of binding the seller to the deal. An indispensable clause in this agreement requires the seller and buyer to sign the formal property sale and purchase contract within a certain number of days. Based on the price and payment terms agreed upon, the agent drafts and then has the buyer and seller sign on the dotted line. The agent then submits the signed contract through an online platform and obtains a contract number as proof of the transaction. Property sellers are advised to commission a reputable agent or property consultant as frauds and scams have been noted in some transactions where bad apples in the real estate market have been involved. As a property owner, also note that transfer of title to the property is prohibited if the ownership is under dispute or frozen; if ownership has not been properly registered; or the certificate of ownership has not been issued or obtained.
When a property is transferred, the original and new owners have to register at the real estate authorities where their property is located, with relevant documents like the certificate of ownership or the certificates of land-use rights and of notary. If the property is to be inherited by the heir of the owner and that heir is a Hong Kong resident, the heir has to obtain proof of his/her family relationship with the original owner prepared by a qualified Chinese lawyer. Then the original owner, his/her spouse and the heir have to register at the local notary office with documents such as certificate of ownership, Home Visit Permit and ID card of the heir as well as the information about the heir’s relationship with the original owner, his/her name and occupation. If the original owner or his/her spouse has passed away, the death certificate of the deceased has to be submitted as well. After the notary procedures are completed, they also have to register at the local real estate authorities for property valuation and ownership transfer.
The Chinese government levies a wide range of taxes, including transaction fees, registration fee of ownership of a building, land-use tax, deed tax, stamp duty, individual income tax, value-added tax (VAT), land-transfer fees, [among]. Besides the agent’s fee and registration fee, the seller also has to pay stamp duty and VAT, as well as enterprise income tax and business tax if the subject property is held in a business entity, and, at 0.05 per cent of the property price, is payable by both parties. Land appreciation tax, or value-added tax, is payable by the seller. VAT is levied on the value added through the sale of real estate. The value added is calculated as the difference between the amount of the income derived from the sale and the amount of certain deductible items. In Beijing, Shanghai, Guangzhou and Shenzhen, city governments currently levy a 5 per cent VAT on the sale of all homes held for less than two years. Sales of smaller homes are not subject to the VAT levy. If profit is made, individual income tax is also incurred and is charged at 20 per cent of the profit generated there from when the asset is sold
source: https://www.google.com.ph/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiR78_O0-TeAhUwz4UKHYnXBz8QjRx6BAgBEAU&url=https%3A%2F%2Fwww.wanderlust.co.uk%2Fcontent%2Fchina-trip-planner%2F&psig=AOvVaw2DgyFWL0LHDMc-kFZiAfaL&ust=1542861085494596