Is there a law that aims to curb real estate speculation in China?
Investors, especially those involved in real estate development in China, should take note of the administrative Urban Real Property Laws promulgated in July 1994. These laws were created essentially to curb speculation in real estate in China. They cover the general principles on the use of land for real-estate development, the development itself, its transfer, leasing and mortgaging of property, titles and legal liability. A developer is required to commence work on the land that he has contracted within a year of the agreed date of the contract. If he fails to commence work within the stipulated one-year period without valid reasons, he is liable for a fine of 20% of the land cost or leasing fee. After two years, his land use right for the said land may be withdrawn.
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