Guangzhou regulators require developers collecting deposits for sales of
completed units to hold a residential building construction permit and sign a
deposit contract with buyers; deposits may not exceed 5% of the total housing
price. Deposit contracts must specify deposit amount, unit price, delivery
timing and liabilities for failure to perform. All deposits must be placed in
supervised escrow accounts managed by the Guangzhou Housing Transaction
Supervision Center and may not be used during supervision. Escrow supervision
and accounts will be closed only after project completion acceptance filing,
utilities (water, power, gas) are ready for handover and on-site residential
public-service facilities within the land parcel pass their acceptance.
