By contrast China remains a Communist country that does not recognize private ownership of property. Instead property is leased for seventy years. In China the national and regional governments are much more deeply involved in property transactions than they are in the United States. As a result, Americans intent on buying a house in China need to be wary of a maze of unfamiliar requirements.
For Prospective U.S. Property Owners in China- Caveat Emptor
Joe Zimny, an investor living in Shanghai, was interviewed by International Herald Tribune writer R. Scoot Macintosh for his article, Buying Abroad: Risk and Reward in China, (June 15, 2006). Zimny summarized the overarching problem Americans face in the Chinese real estate market. "Guidance and standards and protection by rule of law are not yet well-established. People http://har.com/ who come here with high expectations and expect transparency and clarity in the process are often disappointed."
Important Consideration for Americans Looking to Buy http://www.weichert.com/ Residential Property in China
In contrast to the cautionary statements above, HomesGoFast.com, a division of Marr International, Ltd, a global marketing firm, claims, Since the Chinese government opened up the purchase of property in the 1990s, buying real estate here has become quite popular and a solid investment for international purchasers. However, even HomeGoFast admits on its website, The laws in China, however, are neither simple nor transparent. For this reason it is absolutely imperative to understand the process.
General Advice for Americans Considering Purchasing a Residence in ChinaRealty law is not uniform across the vast reaches of China, so prospective buyers are strongly encouraged to hire both a realtor and a realty attorney who understand the specific regulations of the area in which a buyer intends to purchase property. These local professionals can also help the prospective buyer find a property suitable for his or her needs.China is undergoing a construction boom of unprecedented scope. Anyone interested in new houses for sale is advised to pay careful attention to the property developer so as to assure quality construction standards are being met.Buying a property in China can be difficult to finance. Prospective foreign buyers are advised to seek financing options before considering buying because Chinese banks have restrictions about lending to non-Chinese.Buying Residential Property in China is a Multi-step Process
HomesGoFast describes the typical steps a buyer will be expected to go through when looking for new homes for sale in China.
To buy property in China a prospective owner must draft an official proposal letter setting forth the particulars of the expected transaction.Once the official proposal letter is accepted by the appropriate Chinese government agency, the buyer is expected to pay a 1% deposit.The Chinese government must permit a foreigner to purchase property in China. Part of this requirement is that the buyer must have a Chinese name, notarized. This transaction is typically done at the U.S. embassy office or other location provided by the buyers realtor or lawyer.Once all these preliminary approvals are granted, the buyer confirms the purchase with an official contract and puts down a deposit, typically 30%.If all forms are approved, the buyer will be given a date at which all the final financial transactions transpire, and the buyer officially takes custody of his or her property on Chinese soil.The process of purchasing residential property in China is not an easy one. But for the potential home buyer who wishes to own a distinctly different kind of home in the worlds fastest growing economy, a nation with a rich and vast cultural life, it may well be worth the effort.
Sources:
http://www.youtube.com/watch?v=DnKJDlaPI2c
Website: HousingWatch.com (accessed September 12, 2010).
Website: The Natonal Association of Realtors (accessed September 13, 2010).
