Is it fraudulent for developers to misappropriate the purchase price?

Serious is illegal behavior. It is understood that the advance payment of commercial housing refers to the money paid by the buyer in advance to the real estate development enterprise as the construction cost of commercial housing according to the agreement of the housing sales contract before the commercial housing is completed, accepted and delivered for use. According to the detailed rules, the Housing and Urban-Rural Development Bureau is the supervision department for the advance payment of commercial housing. City Housing and Urban-Rural Development Bureau is responsible for the supervision and management of the storage and use of pre-sale funds for commercial housing in Pengjiang District and Jianghai District, and Xinhui District Housing and Urban-Rural Development Bureau is responsible for the supervision and management of the storage and use of pre-sale funds for commercial housing in Xinhui District. When purchasing pre-sold commercial housing from a development enterprise, the purchaser shall deposit the house payment into the pre-sale supervision account of the pre-sale project in accordance with the contract. Development enterprises shall not evade supervision and directly collect and remit the advance payment of commercial housing paid by the buyers themselves. The development enterprise shall, after signing the sales contract with the purchaser, timely transfer the deposit collected when signing the subscription book with the purchaser into the supervision account.

Legal basis:

Criminal law of the people's Republic of China

Article 266 Whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also or solely be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years, and shall also be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated. Where there are other provisions in this Law, such provisions shall prevail.

Article 192 Whoever illegally raises funds by fraudulent means for the purpose of illegal possession shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years; if the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than seven years or life imprisonment and shall also be fined or confiscated.

If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.

Article 266 Whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated. Where there are other provisions in this Law, such provisions shall prevail.