Zhengzhou unfinished building owners collectively cut off supply: developer misappropriated regulatory funds and filed a case

Zhengzhou unfinished building owners collectively cut off supply: developer misappropriated regulatory funds and filed a case

Recently, the collective supply cuts of unfinished buildings in Zhengzhou have attracted widespread attention from the public. According to media reports, many real estate projects in Zhengzhou have suspended projects due to developers' misappropriation of regulatory funds. After several rights protections failed, the owners chose to collectively cut off supply to express their demands. At present, the developer involved has been investigated, but the owner's dilemma has not been fundamentally resolved.

Incident background: misappropriation of regulatory funds leads to unfinished projects

In recent years, the Zhengzhou real estate market has frequently seen unfinished buildings, among which misappropriation of regulatory funds is one of the main reasons. According to the owner, the developer illegally collected the purchase price of the house without obtaining a pre-sale license and diverted the regulatory funds that should have been used for other purposes, resulting in the project's capital chain breaking and the project stagnation. The following are some data of the property involved:

Collective supply cuts by owners: a helpless move

Faced with the unfinished property and the perfunctory attitude of developers, some owners chose to collectively cut off their supply. One owner said: "We pay back the mortgage every month, but we can't see the hope of delivering the house. Stopping supply is the last resort." The following is the statistics on the main reasons why the owners cut supply:

Government responds: Investigate the developer

After the incident fermented, relevant departments in Zhengzhou City intervened in the investigation. At present, the developer involved has been filed for misappropriating regulatory funds, and some responsible persons have been taken to compulsory measures. The government said it will urge developers to resume work as soon as possible and strengthen supervision of pre-sale funds. Here are the measures taken by the government recently:

Industry reflection: How to avoid unfinished buildings?

The unfinished building incident in Zhengzhou is not an isolated case, and similar problems have occurred in many places across the country. Experts pointed out that loopholes in the supervision of pre-sale funds are the key reason for the frequent occurrence of unfinished buildings. Here are some tips to avoid unfinished buildings:

1.Strengthen fund supervision: Implement special account management to ensure that pre-sale funds are used for project construction.

2.Raise the entry threshold for developers: Restrict development qualifications for enterprises with insufficient financial strength.

3.Improve laws and regulations: Clarify the criminal liability for misappropriation of regulatory funds and increase penalties.

4.Introduce insurance mechanism: Explore home purchase insurance to reduce owner risks.

Conclusion

The collective supply cutoff of unfinished buildings in Zhengzhou has once again exposed the regulatory shortcomings in the real estate market. Solving this problem requires the cooperation of the government, developers and financial institutions to effectively protect the legitimate rights and interests of home buyers. For owners, although supply cuts can express their demands, they also need to carefully evaluate legal risks. In the future, how to improve the pre-sale system and prevent similar incidents from happening again will become the key direction of industry reform.