The Cheat Risks Facing Pre-buyers Of Commercial Housing

With the fast development of real estate industry, advance sale of commercial housing has turned into the main way of commercial housing sale. It not only plays an important role in widely financing, revitalization of management and risk avoidance for land agents, but also spurs the real estate market and improves inhabitants' housing conditions.However, there emerged a lot of negative problems recent years. In fact, the object of contract of advance sale of commercial housing is a kind of "right of expectation", which only can be realized after the completion of commercial housing building. Therefore, unreality of commercial housing and inequality of the status between pre-seller and pre-buyer indicate all kinds of risks facing pre-buyers, which is deteriorated by cheat behaviors of pre-sellers. Through the legal analyses of the risks of cheat facing pre-buyers of commercial housing, this paper presents the forms and constitutes of cheat behavior in the advance sale of commercial housing market for the purpose of protecting the legal rights and interests of pre-buyers thoroughly and boosting the development of real estate industry in a healthy way.As for the construction of this paper, apart from the introduction and conclusion, it is divided into four parts:The first part is concerned with a brief introduction of advance sale of commercial housing. In the first place, it deals with the origin, definition and forms of advance sale of commercial housing. It affirms the good aspect while reveals the risks present in itself. Then, it analyzes the nature of the contract of advance sale, and maintains it as forward delivery contract. It also discusses the basic rights of pre-buyers, which is a foreshadow of the discussion of the protection of pre-buyers afterwards. At last, it explains the definition, characteristics and legal constitutes of the cheat behavior in advance sale market in order to draw an outline of cheat behaviors for pre-buyers.In the second part, through the analyses of the cheat risks facing pre-buyers of commercial housing combined with the detailed cases, it summarizes the legal consequences due to the cheat behaviors of pre-sellers in order to put forward a clear idea of cheat behaviors for pre-buyers.In the third part, it deals with the protecting system for the pre-buyer's rights and interests in existence. First, it reminds pre-buyers of self-protecting. Then, it describes the system of advance sale of commercial housing, including the rules of admittance of pre-sellers, the registration of advance sale contract and the supervision of pre-payment, and reveals the limitation of the present protecting system. On the aspect of the protection by Contract Law, it mainly discusses the protection by the rules of format term. At last, it analyzes the definition, characteristics, application range and effectiveness of real property forenotice registration laid down in Property Law and recognizes the usefulness of this system in preventing the phenomenon of "one real estate being sold many times".The fourth part is concerned with the conception of improving the protecting system of the pre-seller's rights and interests. Considering the deficiency and limitation of the present protecting system, it puts forward new measures: First, we should increase the costs of pre-sellers if they break the rules. Thus, we need to recognize the legal status of pre-buyers as customers and use Law on the Protection of the Customer's Rights and Benefits to protect them. Second, we should improve the basic system of advance sale of commercial housing. On the one hand, we should make sure that the admittance of pre-sellers to the advance sale market is strict enough. On the other hand, we should strengthen the supervision of the pre-payment ensuring special funds for special use. Third, we should improve the information system of advance sale market in order to change the situation of asymmetry of information available between pre-buyers and pre-sellers and deter illegal behaviors in the market of advance sale of commercial housing.Presently, there are few theses specializing in the cheat behaviors in the advance sale of commercial housing market. This paper systematically analyzes the risks of cheat facing pre-buyers of commercial housing from the angle of the protection of pre-buyers' rights and interests and the development of real estate industry. It not only affirms the positive function of the existing protecting system of pre-buyers but also points out the limitation of the present system. Finally, it independently puts forward the ways of improving the protecting system of pre-buyers, which is the innovative point of this paper.