Leanne So, Vice President ofBel-Property, tells you what it takes to be an expat proprietor in Beijing

By Paige Wilson

You’d be silly to try to navigate the buying process on your own

Q: I just moved to Beijing and I’m interested in buying new property. Where should I start?

A: Buying residential real estate in Beijing isn’t a straightforward process. In fact, it is quite convoluted and can be overwhelming for a new buyer. Unfortunately, many expatriates spend time looking for real estate investments when they aren’t qualified to buy in the first place. For expats to purchase residential property in Beijing there are criteria that must be met.

To begin, a foreign passport holder must reside in Beijing for a full 365 days—a period that does not begin until you register at your local police station. This means that if you arrive in Beijing on January 1, but do not register until January 15, the 365-day period will not begin until January 15.

When you register with the police, at minimum, you will need to provide a letter from your landlord or property management company confirming that you are indeed residing in Beijing. To be sure, call the police ahead of time to find out what you will need to bring in order to register. Furthermore, if you leave the country during the 365-day period, those days away will not be counted. Thus, if you register on January 1, 2008 and take a two-day vacation in February, you will not meet the 365-day requirement until January 4, 2009. The Department of Immigration calculates the number of days you have physically been in Beijing. When you fulfill the 365-day requirement, it will issue you a permit (境外个人在境内居留状况证明) that qualifies you to proceed in the buying process.

Been here for 365 days? Don’t start searching for real estate just yet! You still may not meet the criteria to buy residential property in Beijing. Potential buyers must also hold a valid worker’s permit and have worked in Beijing for—that’s right—365 days. One caveat: The company that issues your worker’s permit must be registered in Beijing. If not, then your worker’s permit is not valid in the eyes of Beijing’s real estate gods. It would be prudent to find out for certain as many companies are actually registered in other cities for monetary purposes and to bypass the headaches that often accompany a Beijing registration.

Having a co-signer also has its snags. It’s natural to want your spouse to be a co-signer when you buy property. However, keep in mind that your expat spouse must also meet the criteria. If not, they cannot be a co-signer on the contract.

Put simply, this is the basic criteria for expat buyers:

Register with the police and physically reside in Beijing for 365 days

• Hold a valid worker’s permit for 365 days, issued by a company registered in Beijing
• Hold the permit (境外个人在境内居留状况证明)issued from the Department of Immigration that qualifies you to proceed in the buying process

If, after all is said and done, it turns out that you are eligible to buy residential real estate, take a minute to celebrate, then immediately find a reputable real estate agent. Unless it is your area of expertise, you’d be silly to try to navigate the buying process on your own; there is too much money at stake and too many things that can go wrong. A good agent will give you piece of mind that the transaction is being handled correctly. When deciding on an agent, be sure she is proven in first-hand property sales. Many are comfortable with leasing, but lack experience in representing a client who wants to buy new property.

Buying real estate in Beijing can be exciting and lucrative, but before you make an appointment to look, be sure to double check where you stand. There’s nothing worse than discovering the property of your dreams only to find that you don’t qualify to buy.