The Ministry of the Interior (MOI) on Tuesday said it would step up efforts to crack down on construction companies advertising or selling units of presale housing projects before acquiring construction permits.
The ministry reacted to rumors of companies engaging in the illegal practice, saying that their actions would contravene Article 58 of the Condominium Administration Act (公寓大廈管理條例) and the firms would be fined up to NT$200,000 (US$6,914).
According to media reports, one of the companies responsible for a construction project in Taichung’s seventh redevelopment zone allegedly accepted online reservations to view or purchase presale homes before a construction permit had been granted, the ministry said.
In collaboration with the Taichung Consumer Protection Office, the ministry said that officials visited the project to collect evidence, adding that it would take further measures to maintain order in the real-estate market.
Companies that run misleading advertising for projects that have not yet been greenlighted would also violate Article 21 of the Fair Trade Act (公平交易法), the ministry said, adding that the firms would be fined up to NT$25 million.
Presale housing transactions usually take a long time and are susceptible to changes in the market so that buyers should pay close attention to the details, especially if an offer is below the typical market price, the ministry said, adding that people should also be realistic about their own financial capabilities.
It also said that people should consult the standard form contracts that the ministry provides.
If people are offered presale housing units for projects without construction permits, they should contact the authorities, the ministry said, adding that it would thoroughly investigate each case and enforce the law.
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