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Agents who spread property rumors face inquiry
LEGISLATIVE investigations are being held against real estate agents accused of spreading rumors about government property restrictions that have affected the stability of the city’s housing market, Shanghai Municipal Commission of Housing and Urban-Rural Development announced.
The agents include chains linked to Ehousee, Pacific Rehouse and 5i5j real estate companies. The commission has also suspended the agents’ contract dealing qualifications.
Seven Shanghai real estate agents were detained last week for spreading rumors of imminent restrictions to the property market. The rumors were cited as leading to an increase of divorce applications by local couples.
The rumors, which had begun to be spread late last month, claimed a new policy would be introduced this month to impose higher minimum down payments on mortgages for people who have been divorced less than a year. Government officials denied any such new measures were being considered.
The rumors were spread through online platforms and news portals. The authorities responded by shutting down five WeChat public accounts and suspending 13 others for 30 days for carrying misinformation about government plans to tighten the real estate market. The commission said it was going to take a tough line and those involved in spreading industry rumors or defrauding customers would be put on a “black list” or prohibited from market dealing.
Some of the city’s real estate agents have already been punished for fraudulent behavior or regulation violations.
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