Government and Policy

Realtors will get strict rules

By He Dan (China Daily)
Updated: 2011-01-27 07:08

BEIJING - The central government plans to tighten the reins on real estate agents, in part by keeping their credit records on file and by subjecting them to exams meant to weed out those who are not qualified for such work, according to an online official statement.

The regulations, jointly issued on Tuesday by the Ministry of Housing and Urban-Rural Development, the National Development and Reform Commission, and the Ministry of Human Resources and Social Security, will take effect on April 1.

Those who work in real estate will be required to take a qualification exam, held once a year by the three administrative organizations.

Incomplete statistics show that there are more than 50,000 real estate agents in the country and about 1 million people in the business, according to People's Daily, which did not identify its source.

The new guidelines say that to better monitor the property market, administrative departments above the county level should keep the credit records of local real estate agents and make the information public.

The guidelines also stipulate that real estate agents' brochures and contracts should provide clear details about their services and charges.

If real estate agents and brokers break the rules, they will face fines ranging from 10,000 yuan ($1,520) to 30,000 yuan, according to the new rules.

Xia Yuting, a 27-year-old Beijing resident, said she almost gave up the idea of buying an apartment in the city because of the "scary" housing prices and "crafty" real estate agents.

"Most agents I met are horrible and this profession (real estate) is chaotic," said Xia, who has been looking for an apartment to buy in the national capital since June last year.

"I found out that sometimes the real estate agents asked people they know to pretend to be potential buyers," Xia said. "And then they let me see those people and tried to make me think the property was extremely popular."

Li Chang'an, associate professor with the School of Public Administration at the University of International Business and Economics, said the regulations won't produce the desired results unless they are backed by enforcement. He also noted that real estate agents, placed in certain circumstances, will be more likely to adopt sharp practices.

"It's common for a landlord to register properties he has for sale or rent with several real estate agents at the same time," Li said. "So the agents often resort to dishonest tactics to secure a deal."

Li called for the creation of a system for sharing housing information, which will help costumers make better purchasing decisions and reduce competition among real estate agents.

China Daily

(China Daily 01/27/2011 page4)