SHANGHAI - Shanghai has published a detailed property guideline outlining plans for all home buyers to apply for a lottery-like registration system to purchase new homes.

According to the guideline, purchasing orders must be generated by lottery software provided by authorized notaries in Shanghai. The results should be published immediately after the draw.

Real estate developers are prohibited from setting up preferential lottery conditions for their staff or contacts, and sales agents of developers are not eligible for the lottery.

Real estate developers must examine the eligibility of home buyers and submit applications to Shanghai's notary organs for inclusion in the lottery at least 10 days ahead of the new program.

The list of all eligible buyers and houses as well as the lottery results must be published and notarized.

Fraudulent activity and cheating will be strictly prohibited. Any developer implicated in unauthorized activity will be blacklisted and may face criminal charges.

"With the involvement of notary offices, the lottery system can help protect the utmost rights and interests of home buyers who meet the requirements," said Yan Yuejin of E-House China, a leading real estate service provider in China. "It can also help crack down on illegal sales in the real estate market to further regulate market transactions."

Prior to the guideline, some shrewd home buyers used their connections to guarantee their eligibility when purchasing houses, Yan said.

He said the guideline is part of Shanghai's efforts to implement property market rules and regulations, adding that stricter regulations are expected to follow to maintain stability and sound development of the market.