# Policy and regulatory basis

Article 45 of Urban Real Estate Administration Law of the People's Republic of China

The advance sale of product houses shall meet the following conditions:
(1) All the fees for the lease of the right in land use have been paid and a certificate of the right in land use has been obtained
(2) Holding a construction project planning permit
(3) Calculated on the basis of the commercial houses provided for pre-sale, the funds invested in the development and construction of the project amount to more than 25% of the total investment in the project, and the progress of the construction and the date of completion and delivery have been determined
(4) The applicant shall register the advance sale of product houses with the real estate administrative department of the people's government at or above the county level, and obtain the advance sale license certificate. The advance sale of product houses shall, in accordance with the relevant provisions of the State, report the advance sale agreement to the real estate administration department and the land administration department of the people's government at or above the county level for registration and record.
The proceeds from the advance sale of product houses shall be used for the construction of relevant projects.

Article 6 of the Administrative Measures for the advance sale of product houses in cities

The advance sale of product houses shall be subject to a permit system. To advance sale of product houses, the developer shall apply to the real estate administrative department for advance sale permission and obtain a Permit for Advance Sale of Product Houses. Without obtaining the "advance sale of product houses permit," not for advance sale of product houses.

Article 8 of the Measures for the Administration of Commercial Housing Sales

A real estate developer shall, prior to the spot sale of the commercial housing, submit to the competent department of real estate development for record the manual of the real estate development item and the relevant certificates that meet the conditions for the spot sale of the commercial housing.

# Examples of Qualifications

"Commercial Housing Sales Record Certificate":

Permit for advance sale of product house: