Shanghai Wanbang Enterprise, a real estate development company, is in trouble again.

More than 100 people who bought property from the company are suing because of a delay in obtaining ownership deeds. The attorney representing disgruntled purchasers exchanged evidence with Shanghai Wanbang at the Shanghai Pudong New Area District People's Court yesterday.

Shanghai Wanbang, however, says it still has not received documents from the municipal government which are necessary for the company to release the deeds of ownership.

According to Lu Yuanxiang, one of the 134 plaintiffs, about 500 people who bought houses, part of phase five of the Wanbang City Garden, all have the same problem.

Lu said he was happy with the location of the property and the quality of construction was acceptable.

"All I want are the deeds," he insisted.

Wang Baohong, attorney for Shanghai Wanbang, said the reason for the delay was quite complicated and it was inappropriate to say anything before the official hearing, whose date has not yet been set.

Wang said the company might get a green light from the government and give the residents their certificates before the end of the year.

Calls to the Shanghai Housing and Land Administrative Bureau yesterday were not answered.

An architect working for Vanke, a large real estate developer, said the local government is only hesitant to release certificates when the developer does not provide all necessary documentation.

This is not the first time the company has been sued for delaying sending out deeds.

Earlier this year, the Shanghai No 1 Intermediate People's Court ordered the company to pay more than 4 million yuan (US$493,200) to 120 of its phase three Wanbang City Garden residents.

The company was also fined 200,000 yuan (US$24,661) for giving false sales information, according to the Shanghai Municipal Industry and Commerce Administration.

In order to develop a more transparent industry and curb inappropriate practices, the municipal government established a property sales website last April. All developers must publish sales information online, including prices, availability and the names of those who bought houses.

However, the industry and commerce administration said Wanbang asked its employees to pretend to buy houses to give the impression all of its properties had been sold.

Staff then persuaded genuine buyers to pay inflated prices to secure the homes which had supposedly already found buyers.

Tang Yinhua, one of the plaintiffs present in court yesterday, told China Daily that she paid 80,000 yuan (US$9,864) more than the published price for her apartment.

However, the company's a lawyer Wang Baohong argued that far from the scam being company policy, individual members of staff were responsible for the illegally inflated prices.

(China Daily November 1, 2005)