Economy

Third parties set to dictate 'true' property fees from Oct

By Huang Yuli (China Daily)
Updated: 2010-07-09 10:12

A third party property management evaluation system will be introduced in Beijing on Oct 1.

It states that a third party will undertake evaluation and management actions on properties from the first day of October.

The regulation was issued by the Beijing Municipal Commission of Housing and Urban-Rural Development on Thursday morning.

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A spokesman with the commission told Beijing Evening News that the current lack of a third party in the property management market results in the government assuming the role. This prolongs the time taken to resolve conflicts between owner and developer.

The regulation includes an inspection of property during the initial handover from developer to owner, as well as evaluations on property management fees and quality.

According to the regulation, developers will have to select an independent property appraisal agency from a list issued by the government, before they start sales. The role of the third party is to evaluate the services offered, such as elevator fees and cleaning expenses and their costs, as well as decide a price for the flat. The agency's report will be included in all contracts of purchase and be posted in the residential compound.

According to the regulation, appraisal agencies must have registered capital of more than one million yuan.

The spokesman said the regulation will result in a property price that reflects a flat's true quality, but that property evaluation is in its initial phase.