Executive Yuan Pre-sale Housing Inspection Finds Only 11 Violations, Fining 3.54 Million

The Executive Yuan officially released the inspection results for this year's presale housing contracts today. Out of a total of 69 real estate development projects sampled for standard contract inspections, 11 were found to be in violation of regulations and were fined a cumulative NT$3.54 million in accordance with the law. Although violations still occurred, the non-compliance rate dropped significantly compared to previous years, and all of the top ten projects nationwide in terms of sales volume passed the inspection, indicating a positive trend toward improvement in contract standardization within the recent housing market.

Presale housing refers to a type of residential property where developers sign sales contracts with consumers and collect deposits or partial payments prior to construction completion. Because homebuyers are typically unable to physically inspect the quality of the property before handover, the fairness and transparency of contract terms are crucial for protecting consumer rights. The Department of Consumer Protection under the Executive Yuan conducts routine annual inspections, focusing primarily on whether the terms of "standardized" contracts comply with the provisions of the Model Residential Property Sales Contract, and examining whether there are any unreasonable restrictions, hidden fees, or violations of information disclosure obligations.

In this round of inspections, the primary issues identified among the 11 non-compliant projects included failing to clearly specify public facility maintenance fees, failing to provide complete architectural blueprints and construction completion inspection reports as required, and setting excessively lenient delay clauses regarding property handover timelines. Depending on the severity of the violations, the penalty amounts ranged from NT$100,000 to NT$600,000, totaling NT$3.54 million. Although the fines remain a small proportion compared to the total value of the development projects, they serve as a certain level of deterrence for developers who repeatedly violate regulations.

Compared to last year, the non-compliance rate dropped from approximately 7 percent in the previous year to about 4 percent this year, demonstrating that developers are gradually raising their compliance awareness regarding contract drafting and information disclosure. The fact that the top ten projects nationwide in terms of sales volume all passed the inspection also reflects that large-scale developers are more inclined to comply with regulations when facing market and regulatory pressures, so as to avoid damaging their brand image and sales performance. Industry analysts note that in addition to the Executive Yuan's continuous strengthening of inspection frequencies, financial institutions have also begun requiring borrowers to provide complete and compliant presale housing contracts during loan reviews, forming a multi-party oversight mechanism.

In response to developers that continue to commit repeated violations, Vice Premier Cheng Li-chiun instructed local governments to publish the inspection results on their official websites, enabling consumers to access violation information in real time and avoid being harmed by unfair contract terms during the home-buying process. This measure not only enhances administrative transparency, but also aims to compel non-compliant developers to proactively rectify their practices through public oversight, further strengthening the foundation of trust in the overall housing market.

In summary, the continuous promotion of presale housing contract inspections and the strict enforcement of penalties have gradually reduced market violations, exerting a positive effect on boosting consumer confidence in home purchases. If local public disclosure mechanisms and financial review dual-gatekeeping can be integrated in the future, it is expected to help foster a fairer and more transparent residential transaction environment, further stabilizing the development of the housing market.