Nearby Embassie’s, Goverment offices or political meeting area’s

When buying an old House in Shanghai these are also some of the things you have to look out for.

Basically, you can look out of the properties window and if you can see into the privacy of any government or embassie’s the property sale will probably be declined by the state security bureau.

It’s a huge hassle to find a way out and a very small chance that one does.
So when you ask about the neighborhood and the landlord or your agent mentions any government properties,
consulates or places of the sort ask him to call the state security bureau and ask if the premises located at Road, House No. can be sold or not. And if, are there restrictions to who can buy it?

Or Call Shplace and we can check it out for you.

Know-How for purchasing an Old House or Colonial Apartment in Shanghai.

If you’re about to purchase an old Lane House, Garden House or Apartment in Shanghai there is a lot of regulations and restrictions for non-shanghainese, non-mainland chinese, and foreigners.
On this page we list the most important things that you have to have checked out and consider before putting any money done for an object.

The most common miss-understanding and restriction why most deals fail is that the House is not registered on an Owner Ship Certificate (产券 Chan Quan) but on a Usage Certificate (使用券 Shi Yong Quan).
The properties registered under a Usage Certificate (which was the standard and only certificate a while ago, and is the most common in old houses today) can only be purchased by shanghai locals.
In the late ninety’s the country offered a service to transfer the old houses and apartments Usage Certificates to Ownership Certificates for a 30k rmb fee (a lot of money at the time, considering most places didn’t cost more than this), and steady rose to a couple of Million Rmb.
By Now it’s impossible for most if not all Houses to transfer these into real Ownerships.
The Houses that have been transfered at the time are the old houses and flats that everyone can buy today.

After getting to know the basics of Shi Yong Quan and Chan Quan. (owner’s and usage certificate),
there is another simple thing to look out for when purchasing an old building in the French Concession.

The Area.

Since properties have been made available there where always restrictions where foreigners can buy or rent colonial premises in the city.

The original “red area” was from the west of Gao’An Rd, the north of Guang Yuan Rd, the East of Tian Ping Rd and the South of Huai Hai Rd.
The Area is so highly monitored because of the density of living and working government officials around there.
Ever since the first area has come out the Shanghai Muncipal Government has reduced the area’s size more and more.
Moving the East Border at Gao’An Rd to WanPing and since 2005 to WuXing Rd.
Inside this square (see pic on the right), no foreigner or non-mainland chinese can buy or rent an apartment legally.

So if you’re a non-chinese and looking at any place in the “red area” you unfortunately can’t buy it.
The Landlord would also commit a-crime letting you live inside.

How long does it take from making the offer to closing the deal?

That can vary quite a lot from situation to situation,
the fastest that we’ve experienced a sale to finish was about 20 days.
Usually you can expect it to take about 1 to 2 months.
Tough old house properties with more than one owner can sometimes go through about 6 months for the sale to finish.

Be sure that when you sign your offer and downpayment agreement set the date far enough for you to finish all the necessary work and provide all the necessary information.
Check this out, otherwise you may be forced to leave the downpayment with the seller and that one giving the property to somebody else in turn instead.