Sales Contract of Commercial Housing

Bargainor
Bargainee
Original

 
(Contract Serial No.: Ke Li Real Estate-MS(2007)-241)
 

Formulated by
Ministry of Construction of the People’s Republic of China
State Administration for Industry and Commerce, P.R.C.

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Directions to the Sales Contract for Commercial Housing
 
1.
The text of contract is of a model contract wording that can also be applied as
a use text in signing contract. Before signing a contract, the bargainee should
read with care the contents of the contract, and for any different understanding
upon the contract terms and professional words related, it is advised to consult
your local competent department of real estate development.

2.
The commercial housing referred in the contract is the housing that is
developed, constructed and sold by an enterprise engaged in business of real
estate development.

3.
With a view to the principle of voluntaries of the two parties, it is provided
herein blank lines after the relative terms of the contract for of-own-accord
engagement or supplementary engagement of both parties. The two parties can
modify, supplement, abridge or cut down the description of terms of the
contract. At signing contract and its becoming effective, the unmodified
printing wording of the text is considered as descriptive content mutually
accepted by both parties.

4.
For the content to be selective and be filled in, it takes preference for
finishing manually.

5.
For the selective content marked as【          】, the part of blank line and
other content needed for adding or deleting, it is determined through
consultation. The selective content in bracket【          】is to be fixed by
ticking the mark “√”; At the cases no specific matter takes place or none of
engagement made between both parties, it should be ticked the mark “×” for
deletion.

6.
Before signing contract, the bargainor should present bargainee the necessarily
related certificates and supporting documents that are provided by the bargainor
accordingly.

7.
For the contract terms herein, it is responsible to be explained by the Ministry
of Construction and the State Administration for Industry & Commerce of the
People’s Republic of China.

 
 
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Sales Contract for Commercial Housing
(Contract S/N: )

The Two Parties of the Contract:
Bargainor: Shaanxi Ke Li Real Estate Development Co., Ltd
 Registered Address: No.88 Western Section of 2nd South Ring Rd, Xi’an
 Registration Number of Business License: 6100001004939
 Competence Certificate No.:(1997)Z1030
 Legal Representative: Chang Xuhong
Tel: 029-88252828
 Zip Code: 710065
 Principal’s Representative: Jiang Yong
Add: No.88 Western Section of 2nd South Ring Rd, Xi’an
 Zip Code: 710065
Tel: 029-88252828
Agency Entrusted:  ________________________________________
Registered Address:  ___________________________________
    Registration Number of Business License:
 __________________________________________
Legal Representative:  ______________________________
Tel:  ____________________________
Zip Code:  __________________________________
Bargainee: Shaanxi Jialong Hi-Tech Industrial Co., Ltd 
 【Oneself】【Legal Representative】Name: Zhang Jianjun Nationality: China
 【ID Card】【Passport】【Registration No. of the License】 6101036312200283  
Address: Building B Hua Jing Commercial Plaza South Feng Hui Road, Xi’an,
Shaanxi
Zip Code:  _____________
Tel: __________________;
 【Principal’s Representative】【                     】Name:  _____________ 
Nationality: ____________________
   Address:  ________________________
   Zip Code:  ________________________
Tel: ____________________________  

 
According to the Contract Law of the People’s Republic of China, Law of Urban
Management of Real Estate of the People’s Republic of China and along other
stipulations of law and regulations of the state related with, upon the basis of
equality, free will and consensus reached, the bargainor and bargainee have
hereby concluded the agreement for sale of commercial housing as follows:
 
Item 1 Basis of Project Construction
 
The bargainor, by the means of transfer , obtains the land-use right for the
land plot numbering YT-3-2-1 that locates at Yong Song Road, Xi’an The 【Number
of Transfer Contract of Land-use Right】【Approval No. of Appropriation of
Land-use Right】【Approval No. of Transfer of Appropriated Land-use
Right】GF-92-1001

The land area of the plot is 3329.1 ㎡ , programmed purpose as dwelling the age
limit from 2001/06/07 to 2065/10/22 (Y/M/D).
The bargainor, at being approved, constructs commercial housing on the land plot
mentioned above with the 【Present Name】【Temporary Name】 Millennium Star Mansion.
The programming license of construction engineering is 221 , the number of
license for construction is (2001) 0346 .
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
 
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Item 2 Basis for Sale of the Commercial Housing
 
The commercial housing purchased by the bargainee is【ready
house】【sell-in-advance commercial house】. The approval authority for the
sell-in-advance commercial housing is , along the license for being on advance
sale of commercial housing numbering __________________.
________________________________________________________________________________
________________________________________________________________________________.
 
Item 3 Fundamental State of the Commercial House Purchased
 
The commercial house that purchased by the bargainee (hereinafter the commercial
house, housing flat-sheet of which refers to the attachment 1 of the contract,
with numbering of the house subject to the No. 1 attachment) is belonging to the
project stated in the item 1 that specifically as:
 
【Building】 No.1 【Block】__ 【Unit】1 【Floor】25 House numbering 12501, 12502, 12503,
12504, 12505, 12506, 12507, 12508, 12509, 12510, 12511 . Note: The mansion does
not have the elevators of 13th, 14th floor; and the elevator in this floor is
the 27th floor.
 
The purpose of the commercial house is commercial dwelling. It is of frame
structure and of 3.5m of story height. The total stories of the building above
ground is 29 F , and story underground 3 F .
 
The balcony is【Enclosure form】【Non-enclosure form】.
 
The building area of the commercial housing by【engagement of
contract】【registration of property right】is 2051.01 M2 aggregately, amongst
which, the interior floor space is 1444.08 M2 and, the building area of common
part & public apportionment of housing 606.93 M2 (the particulars for
composition of building area of the related common part and public housing
apportionment refers to the No. 2 attachment.)
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
 
Item 4 Modes of Pricing and Purchase Price
 
The two parties of the bargainor and bargainee agree to calculate for purchase
price of the commercial house as per the 1st mode designated as below:
 
i  Calculate on the basis of building area, the unit price of the commercial
house is Ұ 5985 per M2 (in the currency of Renminbi ), for an total amount of
RMB TWELVE MILLION TWO HUNDRED AND SEVENTY FIVE THOUSAND TWO HUNDRED AND NINTY
FIVE YUAN ONLY (RMB12,275,295.00Yuan)
 
ii  Calculated on the basis of the interior building area of each house, the
unit price of the commercial house is                                   per M2
(in the currency of                        ), for an total amount
of                                                  
 
iii Calculate on the basis of flat (unit), the totaling price of purchase of the
commercial house in the currency of                                      
is                                                                                                             .
 
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iv  Remark: (1) The fees for getting through of the communication and network
shall be paid to subscribe by bargainee since its move in; (2)When transacting
the house property certificate, bargainee shall pay the contractual tax and have
the governmental legal documents; and bargainee shall bear all the
expenses.                                                                                 
                                                                                                                                         
 
Item 5 The Area Confirmation and Settlement of Area Difference
 
In accordance with the mode of pricing chosen by both parties, this item hereby
stipulates to conduct area confirmation and settlement of area difference in
terms of the【building area】【interior building area】(all “the area” for short
under this item).
 
For parties choose the mode of pricing by flat, it is not applicable with the
item stated hereby.
 
For difference between the engagement area of contract and the registration area
of property right, it is subject to the registration area of property right
eventually.
 
After delivery of the commercial housing, for any difference arisen between the
registration area of property right and engagement area of contract, both
parties are willing to settle by 
                          method as a solution: the
i Self engagement of mutual parties:
 
(a) ________________________________________________________________;
(b) ________________________________________________________________;
(c) ________________________________________________________________;
(d) _________________________________________________________________.
 
ii Both parties agree to dispose of as per the following principles:
 
(a) The absolute value of error ratio of the area being within 3% (containing
3%), it is to settle payment of housing according to facts;
(b) The absolute value of error ratio of the area being beyond 3%, the bargainee
is entitled to withdraw housing.
For withdrawal of housing claimed by bargainee, the bargainor is to repay
bargainee the sum paid in within 30 days after bargainee’s claim, along paying
interest rate at                  .
 
For non-withdrawal of housing, at registration area of property right larger
than engagement area of contract, the sum for the part with error ratio of the
area within 3% (containing 3%) is to be made up by the bargainee, and, the sum
exceeding 3% is to be born by the bargainor whereas the property right belonging
to the bargarnee; At registration area of property right smaller than the
engagement area of contract, the sum for the part with absolute value of error
ratio of the area with 3% (containing 3%) is to be returned to the bargainee by
the bargainor, and, the sum exceeding the 3% is to be returned to the bargainee
by the bargainor doubling the initial figure.

Error ratio of the area = [(registration area of property right - engagement
area of contract)÷engagement area of contract] × 100%

For difference of the area arisen from architectural change and both parties not
planning to cancel contract, the two parties should sign a complementary
agreement accordingly.
 
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Item 6 Type of Payment and Deadline
 
The bargainee pays on time as per the 1st means mentioned as below:
 
i Single Payment
 
Bargainee shall pay the deposit of RMB50,000.00Yuan only, and shall pay in full
the total house price with the amount of RMB12,275,295.00Yuan; Note: the deposit
shall be used as part of the house
price.                                                          
 
ii Installment
____________________________________________________________________.
 
iii Any Other Means
____________________________________________________________________
____________________________________________________________________.
 
Item 7 Bargainee’s Liability for Breach of Contract at Overdue Payment
 
If the bargainee failed to effect payment as per the time designated in the
contract, it is to dispose of by  mode as below:
 
Handwriting: If Bargainee fails to pay off the house price before July 20, 2007,
the contract will be automatically terminated. The paid deposit from Party A
shall be deemed as the violating fee (In word: RMB Fifty Thousand Yuan Only) and
shall not be refunded by Party B.
 
i Handle separately depending on actual overdue time (for not being accumulated)
 
(a) For overdue time within  days, starting from the 2nd day of the payable
deadline stipulated up to actual date of paying full amount of the account
payable, the bargainee pays to the bargainor by the day a penalty amounting  of
the overdue account payable, then the contract proceeds;
 
(b) For overdue time exceeding  days, the bargainor has got a right to cancel
the contract. At cancellation of contract by the bargainor, the bargainee pays
to the bargainor a penalty calculated by of the accumulated account payable.
Under occasion the bargainee prefer to continue contract performance herein,
upon acceptance of the bargainor the contract can proceed with, whereas starting
from the 2nd day of the payable deadline stipulated up to actual date of paying
full amount of the account payable, the bargainee pays to the bargainor by the
day a penalty amounting  of the overdue account payable [the rate hereof should
not be lower than that of in (a) above].
 
The overdue account payable refers to the gap between the matured account
payable and actual account effected; for installment payment, it is determined
by gap of the installment account payable and actual account paid up of the same
installment correspondently.
ii __________________________________________________________________
___________________________________________________________________.
 
 
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Item 8 Time of Delivery
 
The bargainor, should before the date of within 10days after bargainee paid off
he house price , in conformity with the relative stipulations of the state and
the local people’s government, deliver to the bargainee the commercial house for
use conforming to the engagement of the contract as well as possessing the
1st condition listed hereunder:
 
i The said commercial house proves of quality construction at acceptance check.
 
ii The said commercial house proves of quality construction at overall
acceptance check.
 
iii The said commercial house proves of quality construction at the divided
comprehensive acceptance check.
 
iv The said commercial house has obtained the approval document for delivery of
use of commercial residential building related to.
 
v _________________________________________________________________.
 
Under special circumstances given below, except for cancellation of contract or
renewal of contract, the bargainee can postpone according to actual condition:
 
(a) Encountered with force majeure, and the bargainor inform the bargainee of it
within  days from its occurrence;
 
(b) _________________________________________________________________ 
 
(c) _________________________________________________________________ .
_____________________________________________________________________

Item 9  Bargainor’s Liability for Breach of Contract at Overdue Delivery of
Housing
 
Expert for the special circumstances stated in Item 8 of the contract, it is to
dispose of as per 1st mode below at the bargainor’s failing to deliver the
commercial house by the deadline as designated:
 
i Handle separately depending on actual overdue time (for not being accumulated)
 
(a) For overdue time not exceeding 30 days, starting from the 2nd day of the
final deadline of housing delivery stipulated in Item 8 up to actual date of
delivery, the bargainor pays to the bargainee by the day a penalty amounting
0.5% of the already paid account of housing, then the contract proceeds;
 
(b) For overdue delivery of housing exceeding 30 days, the bargainee has got a
right to cancel the contract. At cancellation of contract by the bargainee, the
bargainor should refund all the account paid within 30 days after arrival of
bargainee’s notice of contract cancellation and along pays to the bargainee a
penalty calculated by ___8%_____of the accumulated account paid. Under occasion
the bargainee prefer to continue contract performance herein, the contract can
proceed with, whereas starting from the 2nd day of the final deadline of
delivery stipulated in Item 8 up to the actual date of delivery, the bargainor
pays to the bargainee by the day a penalty amounting _0.1%_of the already paid
account of housing [the rate hereof should not be lower than that of in (a) of
Item 9].
 
ii _________________________________________________________________ .
 
Item 10 Engagement of Programming Change and Design Change
 
For the programming change checked by programming department and design change
accepted by designing organization that leads to an influence to the quality or
function of the commercial house purchased by the bargainee, the bargainor
should advise the counterpart within 10 days after consent or approval of
related department in written notice:
 
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i   The structure form, flat type, space size and the orientation related to the
commercial house;
 
ii  
_____________________________________________________________________________________________. 
 
iii 
_____________________________________________________________________________________________. 
 
The bargainee has got a right to reply in written whether withdraw the house or
not within 15 days after receipt of the notice. If the bargainee did not make a
written reply within 15 days after receipt of the notice, it’s thus treated as
acceptance of the change. If the bargainor failed to inform the bargainee in a
time limit designated, the bargainee has right to claim withdrawal.
 
For housing withdrawal of bargainee, the bargainor should refund to the
bargainee the fund paid within  days at the bargainee’s claim, along paying
interest rate at  . For non-withdrawal from bargainee, it is proposed to sign
further supplementary agreement with the bargainor accordingly.
 

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____________________________________________________________________________________________________. 
 
Item 11 The Transfer
 
After reaching the standard of use delivery of the commercial housing, the
bargainor should inform the counterpart in written form for fulfilling procedure
of delivery. At the accepting & transferring of the two parties, the bargainor
should present the supporting documents stated in Item 8, and sign the delivery
receipt issued. For the commercial house purchased belonging to dwelling house,
the bargainor is further demanded to provide Quality Warranty of Residence and
Description of Residence. If the bargainor failed to present the certifying
documents or for incompleteness of the documents, the bargainee has a right to
decline the transfer and responsibility of postponing delivery is to be borne by
the bargainor.
 
For reason of the bargainee for deferred delivery of housing, the two parties
agree to deal with in the following way:
 
Bargainee shall bear all the property management fee of the house since the
house has the delivery conditions. 
 
Item 12 The bargainor guarantees the commercial house sold is of non-involvement
of disputes of property-right or liabilities. For the cause of the bargainor
failing to conduct registration of property-right or causing dispute of
liability with regards to the commercial house, it is to be borne entirely by
the bargainor.
 

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Item 13 Bargainee’s Liability for Breach of the Contract Regarding Guarantee to
the Standards of Decoration and Installation

The standards of decoration and of installation for the commercial house
delivered by the bargainor should be in line with the standards that mutually
engaged (refers to the attachment 3). If the standards being not in keeping with
the standards engaged, the bargainee has the right to ask the bargainor handle
by  mode as below:
 
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i   The bargainor compensates for double the price-difference of decoration and
installation.
 
ii  
_____________________________________________________________________________________________ 
 
iii 
_____________________________________________________________________________________________. 
 
Item 14 Bargainor’s Guarantee for Normal Operation of the Infrastructure and
Public Supporting Construction
 
The bargainor promises hereby the following infrastructure and public supporting
construction that linked directly to normal use of the commercial house will
reach the required conditions of application at the following dates:
 
i   Water, Electricity, Small-sized commercial-used Central Air-conditioner, To
be used on the contracted delivery date;
 
ii  Elevator, Communication, Network, Cable TV, To be used on the contracted
delivery date ;
 
iii 
_____________________________________________________________________________________________; 
 
iv 
_____________________________________________________________________________________________;
 
v  
_____________________________________________________________________________________________. 
 
If any failure occurred for reaching the use condition within the deadline
guaranteed, the two parties are to deal with upon consensus in the way(s) below:
 
i  
 _____________________________________________________________________________________________
 
ii  
_____________________________________________________________________________________________
 
iii 
_____________________________________________________________________________________________. 
 
Item 15 Engagement Regarding Registration of Property Right
 
The bargainor should submit for file the available data being required for
registration of titlehood within 180 days after delivery of the commercial house
at the registration dept of property right. If for the cause of the bargainor,
the bargainee failed to obtain the title certificate of real estate within fixed
limit, both parties are to settle upon consensus through 2nd mode as below:
 
i   The bargainee claims for housing withdrawal, and the bargainor refunds the
paid fund of housing within  days from the bargainee’s claim, along compensating
losses of the bargainee by   % of the housing fund paid.
 
ii  The bargainee claims no withdrawal of housing, and, the bargainor pays to
the counterpart a penalty by 1% of the funds of housing paid up.
 
iii
_____________________________________________________________________________________________
 
Item 16 Guarantee of Maintenance
 
For the commercial house purchased by the bargainee being commercial dwelling
house, the Quality Warranty of Residence is hence taken as the attachment of the
contract. From the date of delivery of the commercial dwelling house, the
bargainor undertakes maintenance as engaged in Quality Warranty of Residence.
 
For the commercial house purchased being not commercial dwelling house, the two
parties should make engagement in details for the maintenance scope, term and
obligations in the form of appendix to the contract.
 
For quality problem arisen within the scope and term of maintenance, the
bargainor is obliged to fulfill his obligations. For damage arisen by force
majeure or other reason beyond bargainor, the bargainor is free of obligation
whereas should be assistant in maintenance, with expenses thus occurred being
borne by the purchaser (bargainee).
 

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____________________________________________________________________________________________________. 
 
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Item 17 The Two parities may engage for the following matters:
 
i   The right to use the roof covering of the building the commercial house
belonging to: Bargainor ;
 
ii  The right to use the wall face of the building the commercial house
belonging to: Bargainor ;
 
iii The right to entitle the building the commercial house belonging to:
Bargainor ;
 
iv The right to entitle the residential quarters that the commercial house
belonging to: Bargainor ;
 
v 
_____________________________________________________________________________________________;
 
vi 
_____________________________________________________________________________________________. 
 
Item 18 The house purchased by the baigainee is only for commercial residential
use, and the bargainee is not allowed to change without authorization the
original agent architecture, load-bearing structure and the purpose of the
commercial house during use of housing. Except for other stipulation of the
contract and attachments, in use of the house the bargainee is entitled to share
with other obligee the public architectural part and facilities linking to the
commercial house, and the meanwhile undertakes obligation as per the occupied
area, the apportioned area of public part & common premises.
 
The bargainor is not allowed to change without authorization the quality of use
of the public part and of the facilities linking to the commercial house.
 

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____________________________________________________________________________________________________. 
 
Item 19 For any dispute occurred in process of performance of the contract, it
is settled via consultation of both parties. If compromise settlement failed, it
is to be settled as per the 2nd mode as follows:
 
i  Submit to  Arbitration Commission for settlement.
 
ii Sue at people’s court according to the law.
 
Item 20 For any other matter uncovered in the contract, it is for both parties’
signing a complementary agreement upon engagement (see the attachment 4).
 
Item 21 The attachments have the same force of law as the contract. And in the
contract and its attachments, the words filled in at the blank lines have the
same legal effect as the printing words.
 
Item 22 The contract, along the attachments, is of 21pages totally. It is made
in …4..copies, all of which holding the same act of law. The holding state of
the contract is as:
 
The Bargainor: 1 copy; The Bargainee: 1 copy; Xi’an City House Property Right
and Registry Management Center, One copy and Xi’an City Real Estate Transaction
Management Center, One copy respectively.
 
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Item 23 The contract becomes effective from the date of signing of the two
parties.
 
Item 24 For the commercial house sell-in-advance, within 30 days from the date
of entry into force of the contract, the bargainor is required to apply for
registration file at the Xi’an City State-Owned Land & Resources and Housing
Administration Bureau .
 
The Bargainor (sealed and signed):
Shaanxi Ke Li Real Estate Development Co., Ltd
The Bargainee (sealed and signed):
Shaanxi Jialong High-Tech Industrial Co., Ltd
   
Legal Representative: (signed)
Jiang Yong
Legal Representative(signed):
Zhang Jianjun
Principal’s Representative (sealed):
Principal’s Representative (with signature):
   
Date: June 24th, 2001
Place: Xi’an
Date: June 24th, 2001
Place: Xi’an

 
Registered Authority (sealed):

Date:
 
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