In line with a recently issued edict in Shanghai called the "Notice on Strengthening Real-estate Service", some real estate developers face an investigation into dubious business practices.
The Notice was jointly issued by eight Chinese government departments, and the Shanghai Municipal Housing, Land And Resource Administration Bureau will now carry out a special inspection on the real estate enterprises throughout the city. The first step will be to focus on checking the three properties Tomson Riviera, Jiahe International Building and King Wai City Oasis. Guangwei Real Estate Broker Company is also under separate investigation.
The three properties have been reportedly suspected of dubious accounting and selling, and Guangwei Real Estate Broker Company has been accused of cheating consumers by releasing house information without the permission of the owner and privately increasing the price of the house before making a sale.
According to local media, the four concerned parties' online transactions will be halted during the inspection. There is no word on when the investigations will end and what penalties the companies face if they are truly found guilty of malfeasance.
