联系我们果博东方有限公司开户客服电话19187099992（福布斯）

A foreigner will face some problems to sell his real estates in Shanghai regarding to the ownership transfer, the tax declaration, the remittance of fund as per Chinese rules on foreign exchange. I would like to describe the procedure and documents required from our experience.

1. Find a broker who connect the buyer. To sell the real estate the first step is to find a broker and leave the key for him to bring potential customers to see inside. If a buyer is satisfied with the house/apartment, the procedure of the whole transaction will start.

2. Open a bank account in China. It is clear that the buyer should pay in CNY since the transaction is inside China. Therefore a bank account opened in the commercial banks in China will be necessary to receive the payment. To open the bank account you will be required to be physically appear in the bank to verify your identity. Most bank request a mobile number of Chinese telecom services connected to that account.

3. POA notarized and apostiled. The sale of real estate will be time costing and at least 5 to 6 personal appearances will in need. Therefor to entrust a local lawyer to represent you to handle everything is the usual choice. The POA should be notarized an apostilled in your country. In addition to the following contents yor passport and foreign bank account also should be enclosed in the POA. Together with the originals of POA the Certificate of Real Estate also be post to lawyer for the future transaction.

4. Here is the main content of the POA:

①　To sign, cancel and modify the deposit agreement, real estate purchase and sale contract and related agreements ; 

②　To handle the real estate transfer registration procedures and sign the relevant registration documents of the real estate registration department;

③　To handle the procedures related to the transfer of mortgage including signing relevant documents;

④　To apply for loan repayment and insurance cancellation procedures to the bank and provident fund centre, to handle mortgage cancellation procedures and collect relevant mortgage cancellation materials (including signing relevant documents, receiving insurance premiums, receiving settlement certificates, mortgage registration certificates, etc.)

⑤　To handle the notarization of relevant contracts on behalf of others and receive the notarized certificate;

⑥　To issue receipts for payments;

⑦　To cooperate with the buyer to handle the loan-related matters including signing relevant documents ;

⑧　To cooperate with the buyer to go through the procedures for the recognition of property tax exemption including signing relevant documents; 

⑨　To handle the procedures of tax audit, price verification and real estate valuation;

⑩　To pick up and retrieve relevant materials from the developer, real estate registration department and tax authorities;

⑪　To pick up or hand over the house including property name change, maintenance fund, telephone, broadband, cable TV, water, electricity, gas and other transfer and cancellation procedures;

⑫　To go through the procedures for the transfer of household registration and sign relevant documents;

⑬　To report of the lost of real estate title certificate for replacement, report the lost of the password list, reset, reissue and receive the real estate title certificate and password form;

⑭　To declare and pay taxes including declaring the only housing and pay the relevant taxes and fees payable in the process of the sale of the above-mentioned real estate;

⑮　To handle the supervision procedures of real estate transaction funds and sign the fund supervision agreement and related documents;

⑯　To handle the unfreezing and transferring the supervision funds involved in real estate transactions and signing relevant documents;

⑰　To handle other related matters in the above-mentioned real estate sale process;

⑱　To apply for approval from authorities of foreign exchange and handle the relevant procedures for the remittance of funds arise from the sale of the house.

5. Sign transaction documents. After an agreement is reached about the sales price and other terms, your lawyer may represent you as the seller to sign the transaction documents with the buyer. The documents normally include,

(1) Agreement with broker to fix his service and commission amount;

(2) Sales contract with buyer and another version for signing online for authorities approach,

(3) Buyer’s loan contract. Buyer’s loan will be mortgaged by the real estate so the bank also need your approval.

(4) Agreement of Fund Supervision. This means the payment of buyer will goes to a custody bank account appointed by the government, who will realse to seller’s account after the ownership is transfered.

6. About fund supervision. The contract for fund supervision is a format made by the authorities so it is not allowed to revise much except the amount and the assignment of the fund in case of co=owners. Normally at most two co=owners will be allowed. If there are more than two co=owners the issue need to be talked case by case. There is no charge from the supervision authorities.

7. Ownership transfer. After the loan approved and the payment by buyer to the supervision account is done, both seller and buyer together with the broker will go to the Transaction Center to apply for ownership transfer. If the real estate is the only one you hold in Shanghai and you have got it for over 5years, there will be no tax for seller. For this check you will have to show all co[owner’s ID or passports and if married your spouse and children’s for family check.

8. In addition the documents to prove how you got the real estate will in need too. If you purchased it the sales contract and invoices will in need; if you inherit the will or court judgement should be shown.

9.  Tax payment and tax declaration for remittance of the proceeds. The second visit to the center will be declaration and payment for the tax. The deed tax will be burden by buyer. VAT or income tax if there is should be burden both parties. Then the ownership transfer will complete. After this your representative will have to apply for tax declaration for fund remittance. The amount of the possible transfer will be calculated upon the deal amount.

10. Handover of the real estates. Now the apartment has been legally transferred. After that the physical handover of the apartment will be arranged. Both seller and buyer should go to the apartment to hand over the key, or furniture if there is. Also the change of names against the electricity, gas and management apartment. So far the transaction of the real estate will end.

11. Bank transfer. The last step is to remit the money from your Chinese bank to your overseas bank account. The following will in need:

(1) Physical bank card

(2) Original Declaration of tax with chops of the Center

(3) Original VAT invoice

(4) Copy of Deed tax sheet

(5) Copy of new Certificate of the Real Estate

(6) Original of printed file of the real estate in name of the new owner.

(7) The sales contract for this and last transaction, the will or court judgement etc.

12. After all of above are ready your representative may go to the bank to apply for remittance.