In order to avoid the price limit policy, many buildings in Foshan, Guangzhou have adopted "double contracts" to purchase houses. This form of selling houses is very common in Foshan, and most of them are cost-effective. So is this practice compliant? Let's have a look.

Foshan's double contract for buying a house has a high return.

Anyone who comes to Foshan to buy a house knows that double contract is a way of buying and selling houses by signing the agreement of "purchase contract+renovation contract", which virtually increases the pressure on buyers. Therefore, after signing the contract, many people find that the house price in renovation contract is too high or they can't afford the house price, and want to refund the deposit. This phenomenon often happens in Foshan, Guangzhou.

Double contracts increase the pressure of buying a house

With the emergence of "double contracts" in Foshan, there are two contracts for a house, one is according to the government guidance price, and the other is supplemented in the name of decoration. This greatly increases the down payment cost of buyers. For example, when a real estate in Chancheng was recently sold, its contract was split into two parts, with the blank price1.1.0000 ~1.30000 yuan /m2 (Contract 1) and the decoration unit price of 5000 yuan /m2 (Contract 2), so the total price reached1.

How to define whether double contracts are illegal?

How to define whether double contracts are illegal? Foshan regulatory authorities judge whether the double contract is illegal from the following four aspects:

1, whether there is any violation of the price tag.

2. When the project is sold, do you know the decoration conditions and standards of the buyers, and do you know the relevant agreements to be signed? There shall be no sales fraud.

3. Proof of relevant decoration expenses is required, and there can be no false high decoration behavior.

4. For the decoration price, Foshan Housing and Construction Bureau suggested that we can refer to the decoration standards and model house standards provided by the development enterprises to see if the decoration price is too high. If price issues are involved, we can report them to the price department.

Editor's summary: Through the above, we know the existence of double contracts, and they are not all legal. In the case of check-out, it is easy to have a dispute over the decoration fee of double contracts, and a full refund has become a great hidden danger. If the property buyers encounter the break of the developer's capital chain, it will easily lead to two houses being empty, which is a great loss compared with the actual total purchase amount.