Banks and real estate development enterprises signed the Cooperation Agreement for Individual Housing Loan Projects and the Guarantee Contract for Individual Housing Loan, and stipulated in the contract that banks would issue housing mortgage loans to property buyers who developed real estate by developers. The developer opens a special deposit account in the bank, and provides guarantee for the bank's mortgage loan according to a certain proportion of the total loan amount in the deposit received. After the borrower obtains the real estate license and completes the mortgage registration formalities with the bank as the mortgagee, the bank will return the corresponding deposit in the deposit account to the developer. During this period, if the borrower fails to repay the principal and interest on schedule as agreed in the contract, the developer will repay it on his behalf, and the bank has the right to directly deduct the relevant funds from the deposit account.

Therefore, banks will not issue loans without any guarantee or formal mortgage procedures, and only charge a deposit of 5% of the total loan amount. Banks only recognize developers, and everything is in accordance with the provisions of the cooperation agreement and contract between the two parties to fulfill their responsibilities and obligations. The three parties restrict each other, and the real estate license is generally handled by the developer. If the borrower doesn't pay the deed tax, he won't get the title certificate, and he will have to pay a late fee when it expires. The developer can get the returned deposit after assisting the bank to handle other warrants with the property right certificate.