萬國法律事務所

The Ministry of Interior, Executive Yuan recently promulgated the new Model Sales Contract for pre-sales housing. This new model sales contract excludes eaves and rain shelters from any pre-sale house from being incorporated into the house's price, but allows the constructers to calculate and register the area of eaves and rain shelters to the total floor area of the house. The new model sales contract also incorporates a contract performance bond mechanism.

However, as the model sales contract only applies to pre-sale housing and not to readily available houses, there may be some loopholes in this model contract. The construction companies may sign a reservation deposit agreement instead of an official pre-sale contract with customers who wish to buy a house, and then sign a regular home purchase contract after the construction is completed.

While the intention of the amendment is to protect the consumers in pre-sale housing transactions, critics state that it is unreasonable to allow a non-chargeable eaves and rain shelters to be registered in the total area of the house. Critics also state that the contract performance bond mechanism may mislead the consumers that it would guarantee that the constructor would complete the houses.