Real estate agents will face a "credit test" as the housing market in Hangzhou introduces a credit scoring system for real estate agents starting April 1.

Chao News Reporter: Zhan Lihua Correspondent: Fang Xuanzhong

Photo provided by Hangzhou Housing Security and Management Bureau

The reporter learned from the Hangzhou Housing Security and Management Bureau that starting from April 1, the “Hangzhou Real Estate Brokerage Agency Credit Information Management Measures (Trial)” (hereinafter referred to as the “Measures”) will be officially implemented, further regulating the operating behavior of real estate brokerage agencies, and the real estate brokerage industry in Hangzhou will welcome comprehensive credit supervision.

The “Measures” center around a credit score of 160 points, establishing a closed-loop management system of “credit incentives and dishonesty penalties,” fundamentally regulating the operating behavior of intermediaries, purifying the real estate transaction market, and providing more peace of mind for homebuyers and renters.

How is the credit “report card” calculated? The “Measures” clearly state that the credit evaluation cycle is 3 months, with a total score of 160 points, composed of “base score + bonus items - deduction items,” and dynamic rating, with the credit level being reassessed at the end of each cycle.

The base score totals 100 points, covering basic information such as agency registration, personnel qualifications, and business premises, and is updated dynamically, serving as the “baseline” for credit evaluation. Bonus items can earn up to 60 points, including industry recognition, participation in public service, and recognition for compliant operations, with a validity period of 1 year. Deduction items have no upper limit, with different deduction values set according to the nature and impact of violations such as false advertising, concealing property information, illegal charges, and leaking customer privacy, with negative information generally valid for 3 years.

The evaluation results are classified into five levels A, B, C, D, and E, ranked from high to low based on scores, where level A is excellent (above 100 points) and level E is severe dishonesty. It is noteworthy that positive and negative information scores for branch offices and franchise institutions will be counted at 10% toward the main brokerage agency, which forces the headquarters of real estate brokerage to strengthen internal control.

After the implementation of the “Measures,” credit levels will no longer be “paper honors,” but will be directly linked to operational convenience and regulatory intensity, forming a clear “reward and penalty difference.”

Levels A and B are the industry “top students,” eligible for green channels for property verification and registration, reducing the frequency of routine inspections, and prioritized participation in government purchase services as a credit incentive.

If the credit evaluation is at level D or E, it will be placed under key supervision, and level E will have transaction risk warnings published to the public; in the next evaluation cycle, the highest possible rating will be C, putting on a “tightening spell.”

Supervision is not only strong but also considerate. If brokerage agencies have objections to the negative information assessment, they can submit supporting materials to apply for an appeal, and if the objection is established, timely corrections will be made; if the agency proactively rectifies and eliminates adverse effects, it can also apply for the correction of negative information according to procedures, revoking corresponding scores, giving dishonest agencies a chance to “turn over a new leaf.”

The implementation of this credit management measure is a key step for the Hangzhou real estate brokerage industry from “loose regulation” to “precise governance.” On one hand, by quantifying credit and implementing graded supervision, institutions that operate with integrity can obtain more resources and conveniences, guiding the industry to “align with the excellent”; on the other hand, there is “zero tolerance” for dishonest behavior, with exposure, penalties, and restrictions applied comprehensively to squeeze the survival space of violating institutions, curbing stubborn issues like “yin-yang contracts,” “price differences,” and “false property listings” at the source.

For homebuyers and renters, this also means that in the future, when choosing intermediaries, they can check the agency’s credit rating through official channels, “selecting intermediaries based on scores,” thereby enhancing transaction security; for the industry, credit will become a core competitive advantage, shifting intermediaries from “competing on price” to “competing on service and integrity,” supporting the healthy, orderly, and sustainable development of the Hangzhou real estate brokerage market.

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[Source: Zhejiang Daily]