Zhou Peng has been disappointed many times by real estate agencies and websites that promote "cheap" apartments - often because the claims are entirely false.

"When you call, the agent will tell you the home is sold and recommend you to see a better but more expensive apartment," said the 32-year-old, who works for a State-owned enterprise.

Many second-hand property buyers in the capital have endured similar experiences.

An official with the capital's housing and urban-rural development commission, who did not want to be identified, said several agencies have been discovered using false advertisements.

However, branches of large agencies were this week forced to remove "old and unreal" promotions from shop windows following a citywide investigation by the government.

The probe, which is part of a long-term supervision program for the real estate market, will not only check these advertisements, but also examine every step of housing rentals and sales, including the validity of contracts.

"The punishments for offenders will be according to related regulations and laws," the housing official said.

"Normally it takes two to three weeks to collect evidence, make records and arrange interviews with heads of the agencies."

Several agents contacted by METRO said it is common for companies to use false advertisements to attract clients due to the fierce competition.

Wu Xinhui, marketing manager with anjuke.com, one of the largest real estate websites, said his firm launched an alert system to encourage buyers to report fake promotions.

"When agents are exposed, we give them warnings and cancel their rights to release information on the website," she said.

The Real Estate Agency Management Measure, which was jointly released this month by Ministry of Housing and Urban-Rural Development, National Development and Reform Commission and Ministry of Human Resources and Social Security, is also aimed at putting a stop to such practices.

According to the measure, which came into effect on April 1, agencies must check the housing ownership certificate and assure the authenticity of the document before they release a rental or sale advertisement.

China Daily

(China Daily 04/21/2011 page)