Shenzhen: Down Payment on Housing Generally Should Not Exceed 3% of Total Price

36Kr reports that Shenzhen has issued implementation opinions to enforce the "Notice on Improving the Sales System for Commodity Housing." For existing-sale projects where construction permits for the main structure of residential buildings have been obtained, developers may sign down payment contracts with buyers after thoroughly assessing performance and delivery risks. The down payment generally should not exceed 3% of the total housing price. Down payment contracts must specify the amount, sale price, delivery time, and liability for failure to perform on schedule to protect the legitimate rights and interests of both parties. If a developer breaches the contract by failing to deliver on time, buyers have the right to terminate the down payment contract according to the agreement, and the developer must return the down payment and bear liability for breach of contract in accordance with the law.