FINANCIAL RISK CONCERNS
Cao Honghui, a financial researcher with the Chinese Academy of Social Sciences, said there are definitely financial risks for such unlicensed sales.
"Apartments are very costly, and it is absolutely necessary for buyers to acquire some basic knowledge," said Cao, an expert on real estate finance.
He said five permits are vital for a realtor to forward delivery housing sales in an urban area. The required permits include a land planning permit, a project planning permit, a construction permit, a land use permit and a sales permit. "The other four are the preconditions of the sales permit, and if any one of the five is missing, housing sales are illegal," he said.
Cao also said the government should be responsible for such illegal sales. "Local government departments of real estate, land resources departments and urban construction administration should have intervened and stopped illegal sales in the first place," he said.
