Macau and Zhuhai create mechanism to prevent real estate purchase frauds

Macau and the neighbouring city of Zhuhai have created a mechanism to regulate the property sales market in order to prevent frauds after complaints were made by local residents concerning the purchase of homes in mainland China, the authorities announced today (Wednesday).

The acquisition of houses in the regions adjacent to Macau was the subject of a challenge to the Government of Macau by legislator José Pereira Coutinho, who reported the existence of complaints related to the purchase of housing.

The complainants invariably denounced that, in addition to “serious deficiencies in the facilities”, the legal destination of the properties, after all, was only for commercial purposes.

On the other hand, the contracts contained arbitration clauses subject to the local acquisition regime and were, in general, impeding the appeal to civil courts, Pereira Coutinho then pointed out.

‘The Consumer Council (CC) and the Economic Services Bureau (DSE) met with the authorities of the city of Zhuhai and the new district of Hengqin in the scope of market supervision, consumer protection and sale regulation of real estate, having discussed the preventive measures and swift response in relation to the protection of the legitimate rights and interests of Macau residents in the acquisition of properties located in Zhuhai’, the DSE statement notes

‘At the meeting, a consensus was reached on the creation of a joint prevention and control mechanism, as well as concrete and detailed work on this matter’

On the one hand, the creation of a joint preventive mechanism on property advertising between Macau, Zhuhai and Hengqin, the Ilha da Montanha, where the old territory administered by Portugal has promoted tourism, industrial and housing investments, was defined.

On the other hand, a mechanism for verifying license information has been established, with Macau warning that if “false information is discovered, the case will be dealt with severely and reported to the judicial authorities”.

Finally, a specific zone was created on the CC website for “information on the acquisition of real estate in Mainland China”, which has a link to the “Zhuhai city real estate transaction platform”, where consumers can verify the authenticity of the number of the “pre-sale license for marketable dwellings”, as well as the destination of the property.