The five certificates refer to the fact that real estate developers should possess the "Construction Land Planning Permit", "Construction Project Planning Permit", "Construction Project Construction Permit", and "State-owned Land Use Certificate" when pre-selling commercial housing. and "Commercial Housing Sales (Pre-sale) License".
What are the consequences of incomplete five certificates
1. The signed house purchase contract is invalid. If the house sold by the developer does not have all five certificates, that is, there is no pre-sale qualification certificate for commercial housing, then the pre-sale contract signed between the developer and the home buyer will be invalid. Because commercial housing is subject to online contract filing operations, even if the buyer of a house with incomplete five certificates has paid and signed a pre-sale contract, it cannot be registered online at the real estate trading center. If you encounter an unscrupulous developer, there may be a situation where "one house is sold for more than one house", which may lead to house purchase disputes.
2. Quality is not guaranteed. Regular developers will not pre-sell houses without obtaining the Five Certificates. Only some illegal developers will start pre-selling houses without obtaining the Five Certificates. Developers who do not have the Five Certificates will not be able to sell houses in advance in large areas. To a certain extent, it means that developers are very likely not qualified to build commercial housing, nor are they qualified to sell commercial housing. It is difficult to guarantee the quality of such houses.
3. Unable to apply for real estate certificate. The real estate certificate is a very important document. If the developer does not have the five certificates, he will not be able to obtain the real estate certificate, and the home buyer will not be able to register and transfer the property rights in time. Houses are real estate and a real-name registration system is implemented. Houses without real estate certificates are not legally property rights and are not protected by property rights laws. Once developers have problems, home buyers will surely suffer losses.
4. Unable to apply for a loan. Many home buyers will apply for a loan when buying a house. Under normal circumstances, banks will only handle mortgage loan procedures for home buyers after confirming that the house has a pre-sale license and requiring the developer to provide periodic guarantee obligations. If the developer deliberately conceals the loan restrictions and causes the home buyer's loan failure, it will bring direct losses to itself.