Hangzhou second-hand housing agents hire people to pretend to be buyers and put on a “dual act” to pressure landlords to lower prices in order to facilitate quick transactions. This news made headlines on mainland China’s hot search on September 22, and some lawyers suggested that the agents’ actions may constitute civil fraud.
According to a report by Knews from Shanghai Dongfang TV and Shanghai TV on September 21, a journalist contacted the recruiters who posted advertisements for part-time actors to view properties on social platforms. It was discovered that these recruiters were actually employees of real estate agents.
In a video released by the media, an agent from Lianjia real estate agency stated that the purpose of this practice is to “only through this way can we continuously provide feedback to landlords on prices and speed up transactions.” The company also requires agents to bring 15 customers to view properties every day. The agent also told the journalist, “Try to talk more about the advantages of the house, mention only 1 or 2 disadvantages, otherwise the landlord may suspect you are an actor.”
Another agent from “Miaomai Fang” real estate agency even took the journalist, disguised as a job seeker, to view over a dozen properties, and arranged for the journalist to “perform a dual act” with them to pressure landlords for price reductions. In one instance, a second-hand property listed at 3.39 million yuan was negotiated down to 2.8 million yuan by the agent, but the deal was not sealed after meeting with the landlord. In another negotiation, under the pressure to lower prices, a landlord was forced to reduce the listed price from 5.38 million to 5.1 million yuan.
When explaining their actions, an employee of “Miaomai Fang” revealed the reason behind it: “If we let buyers directly negotiate with landlords, in case the negotiation fails, the buyers may no longer consider the property. By having actors negotiate, we can pre-rehearse and assess the differences between the two parties, giving us a better understanding.”
The agent also disclosed that their boss could earn “500,000 yuan for sure” by closing 50 deals a month through this kind of indirect price pressure tactic.
In response to this, a practicing lawyer told the media that according to Article 148 of the Civil Code, such tactics may already constitute civil fraud. Sellers involved in transactions suspected of civil fraud can apply for contract rescission, and agent fees will have to be refunded.
After the news was released, it sparked discussions online. Most netizens expressed outrage at the agents’ practices.
“A Ke Xiaoxingxing kYAI” said, “These methods are too despicable and should be exposed!”
Netizen “Qipai Erhuo” commented, “It’s quite normal for agents to use ‘stooges,’ a common practice. I’ve encountered it once before when the agent had a colleague pretend to be a potential buyer, but it turned out that I knew the colleague, and both of them felt awkward and left in a hurry.”
“Canghaiyishengxiao” revealed, “Even in a good real estate market, agents act as ‘stooges’ to inflate prices.”