BEIJING (Reuters), Beijing might tighten its management of home payment payments kept in escrow to ensure funds are only used to fund property projects, according to draft guidelines released Thursday.

China Evergrande Group has fallen into debt, making it the country’s most successful developer. Now, the sector faces a liquidity crisis.

Chinese developers may sell residential developments before they are constructed, but must put the funds in an escrow account that is monitored by local regulators.

According to the new proposed rules, developers will not be permitted to receive the funds back if they have any quality issues, fail delivery on time, or break laws.

The draft rules of Beijing’s local housing regulator state that homebuyers would be prohibited from signing a contract with a developer until the deposit has been fully deposited into escrow accounts.

China’s property sector is experiencing a slowdown in growth this year due to tough measures such as lending curbs and price caps, which have cooled it.

Kaisa Group Holdings Ltd, a Chinese property developer, stated on Thursday that its finance unit failed to pay a balance on a wealth management (WMP) product. This raises concerns about the company’s cash flow.