March 13th, 2018. Shanghai Public Security Bureau has published the full text of the regulations on Shanghai permanent residence registration management on its official website, this document aims to make the issue of permanent residence registration in Shanghai clearer for all.

Article 32 of this regulation has stipulated that if the ownership of the house or public housing tenancy rights has been transferred and the current obligee or tenant wants to move out of the original registered permanent residence of the house, the local public security police station shall notify the people who are the holders of the original permanent registered residence, to move out. For those who refuse to move out or are unable to be notified, their registered permanent residence will be transferred directly to the community public registered permanent residence.

In cases where the seller will not move out from the original permanent registered residence in sufficient time, after signing the sales contract with buyer, the buyer will be prevented from enjoying the rights and interests of the house and thus put in a disadvantageous situation as according to the previous regulations, the public security organs cannot force the original owners to move out of the registered permanent residence when there has been a conflict.

The only way to move out of the permanent registered residence is if the owners apply for it by themselves. As this matter is not a civil dispute, it does not fall within the jurisdiction of the courts, therefore, the process of  transferring the registered residence permanent becomes a stubborn disease in real estate transactions, which in turn also creates a bad influence on the housing business. It is not only the buyers and sellers who suffer, it may also cause confusion in registered permanent residence management and increase the costs of social management.

The amended regulations provides a welcome turnaround for this issue and according to a statement from representatives in the Shanghai Housing Administration Bureau, Shanghai has modified the model text of Shanghai real estate sales contract, which has been put into use since March 1st, 2018. In this model text, the terms of transferring the permanent registered residence between buyers and sellers has been added, which mainly guides the buyers and sellers to agree on these matters before the signing of the contract in order to protect the rights and interests of buyers and sellers in these transfer matters.

There are some experts, who believe that“deadbeats”in these such matters will be reduced when the new regulation is implemented, however, the management pressure of urban community’s publicly registered permanent residence will surely be greater.

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