The Law of the People’s Republic of China on Urban Real Estate Administration 1995
(Adopted by the Eighth Meeting of the Standing Committee of the Eighth
National People's Congress on July 5, 1994)
CONTENTS
CHAPTER I GENERAL PRINCIPLES
CHAPTER II LAND FOR REAL ESTATE DEVELOPMENT
PART 1 LEASING OF RIGHT OF LAND USE
PART 2 ALLOCATION OF RIGHT TO USE LAND
CHAPTER III REAL ESTATE DEVELOPMENT
CHAPTER IV TRANSACTIONS OF REAL ESTATE
PART 1 GENERAL PROVISIONS
PART 2 TRANSFER OF REAL ESTATE
PART 3 MORTGAGE OF REAL ESTATE
PART 4 LEASING OF HOUSES
PART 5 INTERMEDIATE SERVICE AGENCIES
CHAPTER V REGISTRATION OF REAL ESTATE TITLE
CHAPTER VI LEGAL LIABILITIES
CHAPTER VII SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PRINCIPLES
Article 1 This law is formulated for the purpose of safeguarding the
real estate market order, protecting lawful rights and interests of real
estate owners and promoting healthy development of the real estate
industry through a strengthening of urban real estate administration.
Article 2 Those who acquire the right to use the State-owned land within
the designated urban area of the People's Republic of China (hereinafter
referred to as" State-owned land") for real estate development, engage
in real estate development or transactions of real estate and exercise
real estate administration shall abide by the law.
The buildings referred to in this law shall mean houses and other
structures on the land.
The real estate development referred to in this law shall mean the
activities of construction of infrastructures and buildings on the land
that the right to use the State-owned land has been assigned in
accordance with this law.
The transactions of real estate referred to in this law shall mean
transfer of real estate, mortgage of real estate and leasing of
buildings.
Article 3 The State practices system of using State-owned lands under
due compensation and terms of using the land except the use of State-
owned land allocated by the State according to this law.
Article 4 The State shall, in accordance with the social and economic
development level, supports construction of residential houses to
gradually improve the living conditions of local residents.
Article 5 Real estate owners shall abide by the laws and administrative
decrees and pay tax according to the law. The lawful rights and
interests of real estate owners are protected by the law against any
infringement by institutes and individuals.
Article 6 The administrative department in charge of construction and
the land administration department of the State Council shall administer
the work of real estate nationwide individually or cooperatively under
their own powers.
The organizational set-up and power of the real estate administration
and land administration departments of the local people's governments
above the county level shall be determined by the provincial, autonomous
regional or municipal people's governments.
CHAPTER II LAND FOR REAL ESTATE DEVELOPMENT
PART I LEASING OF RIGHT OF LAND USE
Article 7 Leasing the right of land use means that the State leases the
right of using the State-owned land to land users within a certain
period and the land users shall pay the State fees for using the land.
Article 8 For a collectively-owned land within a designated urban area,
it must be requisitioned and turned into State-owned land in accordance
with law first and then for leasing out to land users with due
compensation.
Article 9 The lease out of land for use must comply with the overall
land use plan, the urban plan and the annual construction land use plan.
Article 10 For leasing out the right of their land for real estate
development, they people's government above the country level must first
of all draft plans of total areas of land to be leased out in a year in
accordance with the control quotas assigned by the people's government
at or above the provincial level, and following the provisions of the
State Council, report to the State Council or provincial-level people's
government for endorsement.
Article 11 The right to use land shall be leased step by step in a
planned manner by city or county people's governments. A city or county
people's government and the urban planning, construction and real estate
administration departments shall jointly draft a plan on the tracts of
land to be leased out with their uses, term of use and other conditions,
and following the provisions of the State Council, report to the
empowered people's government for approval and then hand down the plan
to the land administration department of the city or county people's
government for execution.
The power consigned to county people's governments and the relevant
departments of the municipality directly under Central Government for
execution as referred to in the above paragraph shall be determined by
the municipal people's government.
Article 12 The right of use land shall be leased through auction,
bidding or negotiations between the related parties.
The right to use the land for construction of commercial, tourist,
recreational facilities or luxury housing must be leased out through
auction or bidding, when conditions permit; when conditions do not
permit and auction or bidding cannot be adopted, it may be leased
through negotiations between the related parties.
Prices for the use of the land leased out through negotiations between
related parties shall not be lower than the bottom price stipulated by
the State provisions.
Article 13 The maximum term of land use shall be stipulated by the
State Council.
Article 14 A written contract for the lease shall be signed on the
lease of the right to use land.
The contract for the lease of the right to use land shall be signed by
the land administration department of a city or county people's
government and land users.
Article 15 Land users shall pay the lease fees of the right to use land
in accordance with the contracts signed for the lease; when one fails to
pay the fees for the use of the land in accordance with the related
contract of the lease, the land administration department has the right
to rescind the contract and ask for compensation for violation of the
contract.
Article 16 When land users pay the lease fees for the right of land use
in accordance with the contract for the lease, the land administration
department of a city or county people's government must provide the land
in accordance with the contract for the lease; when the land is not
provided in accordance with the contract for the lease, the land user
has the right to cancel the contract with the fee handed over for the
use to be returned by the land administration department and the land
user may also ask for compensation for the violation of the contract.
Article 17 Land users who need to change the use of the land prescribed
by the contract must first of all get the consent from the land lessor
and the urban planning department of the city or county people's
government, sign an agreement for revision of the contract for the lease
of the right to use land or sign a new contract for the lease of the
right to use land and readjust the lease fees of the right to use land
accordingly.
Article 18 Lease fees for the right of land use must be handed over to
the financial department to be entered into the budget and used for the
construction of urban infrastructures and land development. The hand-
over procedure and the use of the lease fees for the right of land use
shall be stipulated by the State Council.
Article 19 The State shall not take back the right of land use that the
land users have obtained in accordance with the law before the
expiration of the agreed term prescribed in the contract; under special
circumstances, the State may take back the land in advance out of public
interest consideration in accordance with legal procedures and
corresponding compensation shall be given to the related land user in
accordance with the real term that the land had been used and the real
conditions of the land development.
Article 20 The right of land use shall terminate with extinction of the
land.
Article 21 Upon a continuous use of the land after expiration of the
agreed term prescribed by the contract, the land user has to apply for
extension at least one year before the expiration of the term. The
application shall be approved except that the tract of land needs to be
taken back out of public interest consideration. When extension is
approved, it is necessary to re-sign a contract for the use of the land
and pay fees accordingly for the use in accordance with the provisions.
When the agreed term prescribed by the contract for use of the land
expires and the land user has not applied for extension or the
application for extension has not been approved in accordance with the
provision of the above paragraph, the right to use the land shall be
returned to the State gratis.
PART II ALLOCATION OF RIGHT TO USE LAND
Article 22 The allocation of the right to use land shall mean the hand
over of a tract of land by the people's governments above the county
level for use by a land user in accordance with the law for
compensation, settlement, etc. or gratis.
The right of land use obtained through allocation in accordance with
this law, except those prescribed otherwise by the laws and
administrative rules, has no time limit.
Article 23 The right of land use for construction of the following
projects, may be allocated by the people's governments above the
country level when necessary:
(1) land used by State organs of for military purpose;
(2) land used for construction of urban infrastructures and public
utility;
(3) land used for construction of the State-supported key energy,
transport and water conservancy projects; and
(4) land used for other purpose stipulated by the laws and administrative
rules.
CHAPTER III REAL ESTATE DEVELOPMENT
Article 24 Real estate development should be made in strict accordance
with the urban developing plan under an overall planning, rational
layout, comprehensive development and balanced construction of all
facilities to achieve an integration of economic, social and
environmental effect.
Article 25 Those who have obtained the right of land use through lease
for real estate development must develop the land in accordance with the
use and term as prescribed by the contract for the land use. When the
development has not started one year later than the date for starting
the development as prescribed by the contract, an idle land fee less
than 20 percent of the lease fees for land use may be collected and when
the development has not started two years later, the right to use the
land may be taken back without any compensation, except that the delays
are caused by force majeure, the activities of government or
governmental departments, or the necessary preparatory work for starting
the development.
Article 26 The design and construction of a real estate development
project must comply with the State relevant standards and norms.
After its completion, a real estate development project must be
inspected and accepted before it can be put into operation.
Article 27 The right to use a land obtained in accordance with the law
may be evaluated to be turned into shares for a joint equity of
cooperative real estate venture in accordance with this law, the
relevant laws and administrative decrees.
Article 28 The State adopts preferential tax and other measures to
encourage and support real estate development enterprises to develop and
build residential buildings.
Article 29 A real estate development enterprise shall mean an enterprise
engaged in development and operation of real estate for the purpose of
profit. The establishment of a real estate development enterprise shall
have the following conditions:
(1) Its own name and organization;
(2) A fixed site for business operations;
(3) The registered capital complying with provisions of the State
Council;
(4) Sufficient professionals and technicians; and
(5) Other conditions prescribed by the law and administrative decrees.
To establish a real estate development enterprise, a registration
should be made with the Administration for Industry and Commerce. The
Administration for Industry and Commerce shall handle registration
procedures of those which comply with conditions as prescribed by this
law and issue licenses to them; and refuse to handle registration
procedures of those which do not comply with conditions prescribed by
this law.
Those which establish a limited liability company or limited stock
company to engage in real estate development and operations shall also
execute the relevant provisions of the Corporate Law.
A real estate enterprise shall report for record to a department
designated by the people's government above county level where the
registration department is located within one month after obtaining the
license.
Article 30 The ratio between the registered capital and the total
investment of a real estate enterprise must comply with the relevant
State provisions.
When a real estate enterprise develops a real estate project in phases,
the amount of investment in each phase shall suit the project scale of
that phase and, in accordance with the provisions of the contract for
the lease of the right to use land, funds shall be put into construction
on schedule.
CHAPTER IV TRANSACTIONS OF REAL ESTATE
PART 1 GENERAL PROVISIONS
Article 31 When a real estate is transferred or mortgaged, the ownership
of the building and the right to use the land occupied by the building
are transferred or mortgaged at the same time.
Article 32 The standard land prices, the nominal land prices and the
appraised prices of various buildings shall be determined and published
regularly. The specific methods shall be stipulated by the State Council.
Article 33 The State institutes a real estate price evaluation system.
The evaluation of price for a real estate follows the principles of
being just, fair and public in accordance with the technological
standards and evaluation procedures as stipulated by the State basing on
the standard land price, nominal land price and the appraised prices of
various buildings and referred to the local market prices.
Article 34 The State institutes a report schedule for real estate
transacted price.
Owners of real estate right who transfer real estate shall report the
real settlement price to the department designated by the local people's
government above the county level. None shall conceal a transfer or make
untrue report.
Article 35 When a real estate is transferred or mortgaged, the parties
involved shall go through the title registration procedures in
accordance with the provisions of Chapter V of this law.
PART 2 TRANSFER OF REAL ESTATE
Article 36 Transfer of real estate shall mean the move of the ownership
of a real estate from the original owner to another person through sale,
donation and other lawful means.
Article 37 Real estate with following conditions shall not be
transferred:
(1) The acquirement of the right of land use through lease does not
comply with conditions as prescribed in Article 38 of this law;
(2) The title to the real estate has been sealed up or restricted in any
form upon ruling or deciding of judicial authorities or administrative
departments in accordance with the law;
(3) The right of land use has been taken back in accordance with the
law;
(4) Without a written consent of other owners as under joint ownership;
(5) There are disputes on the title;
(6) Those which have not been registered and obtained title certificates
in accordance with the law; and
(7) Other condition that the transfer is forbidden according to the law
or administrative rules.
Article 38 The transfer of real estate with the right of land use shall
comply with the following conditions:
(1) All the fees in concern with the lease of the right of land use have
been paid in accordance with provisions prescribed by the contract for
the lease and the certificate of the right to use the land has been
obtained; and
(2) Investment and development have been done in accordance with the
provisions prescribed by the contract for the lease; for housing
construction projects, 25 percent of the total investment has gone
through; for development of large tracts of land, land has been
available for the construction of industrial or other projects.
When a real estate is transferred with a finished building, title
certificate for the building is also needed.
Article 39 When transfer of a real estate with the right of land use
being obtained through allocation, an application should be submitted to
an empowered people's government for approval, in accordance with the
provisions of the State Council government. After the approval by a
related people's government, the transferee shall go through the
procedures for transfer of the right of land use and pay lease fees for
land use in accordance with the relevant State provisions.
If the related people's government refuses to carry out the procedures
of the transfer of right of land use in accordance with the provisions of the State Council, the transferor shall, in accordance with the provisions of the State Council, hand over the income for transfer of the land arising form the transfer of real estate to the State or handle
them otherwise.
Article 40 A written contract must be signed in real estate transfer,
and the contract shall carry the clause on the form of obtaining the
right of land use.
Article 41 When a real estate is transferred, the rights and obligations
carried in the contract for the lease of the right of land use are
transferred accordingly.
Article 42 When transfer of a real estate with the right of land use
obtained through lease, the term of the right to use the land is the
remaining time of the term prescribed by the original contract after
deducting the time that the land has been actually used by the original
land user.
Article 43 After the transfer of a real estate with the right of land
use obtained through lease, if the transferee wants to change the use of
the land prescribed by the original contract for the lease of the right
of land use a consent must be acquired from the transferor and the urban
planning department of the city county people's government with an
agreement signed on revision of the contract or a signing of a contract
with an adjustment of the lease fees of the right of land use.
Article 44 An advanced sale of commodity houses must meet the following
conditions:
(1) All the lease fees of the right of land use have been paid and a
land use certificate has been obtained;
(2) A construction planning permit has been held;
(3) Funds put for construction of the houses for advanced sale have
exceeded 25 percent of the total budgetary investment for the project
and the construction schedule and date of completion of the project have
been set; and
(4) An advance sales registration has been made with the real estate
administration of the people's government above the county level and a
permit of advance sales of commodities house has been obtained.
The advance seller of the commodity houses shall, in accordance with the
relevant State provisions, report the advance sales contracts for record
to real estate administration and land administration departments of the
people's government above the county level.
The funds derived from advance sales of commodity houses must be used in
construction of the relevant projects.
Article 45 The procedures for the transfer of houses in advance sales by
the buyers of the houses will be stipulated by the State Council.
PART 3 MORTGAGE OF REAL ESTATE
Article 46 Mortgage of real estate shall mean provision of legal real
estate in non-transfer mode by the debtor to mortgagee as guarantee of
debt payment. When the debtor fails to carry out the debt service, the
mortgagee has the priority of being paid back first through the auction
of the mortgaged real estate according to law.
Article 47 The title of a housing property plus the right to use the
land occupied by the housing property obtained lawfully may be
designated as mortgage right.
The right to use land obtained through lease may be used as a mortgage.
Article 48 The mortgage of real estate shall be made upon the
presentation of the land use certificate and housing property title
certificate.
Article 49 In mortgage of real estate, the mortgagor and mortgagee shall
sign a written mortgage contract.
Article 50 In mortgage of real estate with the right of land use
obtained through allocation, the mortgagor has the priority to be paid
first only after a fund equivalent to the lease fees for the right to
use the land has been paid upon an auction of the real estate according
to law.
Article 51 After a real estate mortgage contract is signed, the newly
added housing property on the land does not belong to the mortgaged
property. When the mortgaged real estate must be auctioned, the newly
added housing property may be auctioned together with the mortgaged
property, but for the fund derived from the auction of the newly added
housing property, the mortgagee has not the priority for first payment.
PART 4 LEASING OF HOUSES
Article 52 The leasing of houses shall mean ranting of houses with a
certain amount of rental paid by lessees to the lessors.
Article 53 When leasing a house, the lessor and lessee shall sign a
written lease contract, prescribing such provisions as the leasing
term, use of the house, rental and repair liabilities, and other rights
and obligations of both parties; and go through registration procedures
for record with the real estate administration department.
Article 54 When leasing a residential house, it is necessary to
implement the leasing policy stipulated by the State and the people's
government of the city where the house is located. When leasing a house
for production or commercial use the two parties for the leasing shall
determine the rental and other terms of lease through consultation.
Article 55 When the owner of a house rents out a house built on the
State-owned land with the right to use the land through allocation for
a profit, the rental arising from the land shall be handed over to the
State. The specific methods shall be stipulated by the State Council.
PART 5 INTERMEDIATE SERVICE AGENCIES
Article 56 The real estate intermediate service agencies include real
estate consultants, real estate evaluation agencies and real estate
brokerages.
Article 57 A real estate intermediate service agency shall meet the
following conditions:
(1) It has an own title and organization;
(2) It has a fixed business site;
(3) It has the necessary assets and funds;
(4) It has a sufficient number of professionals; and
(5) It has other conditions stipulated by the laws and administrative
rules.
The establishment of a real estate intermediate service agency shall
apply to the administration for industry and commerce for registration
and a license before it goes into operation.
Article 58 A real estate evaluation person should go through an
assessment by a qualification agency.
CHAPTER V REGISTRATION OF REAL ESTATE TITLE
Article 59 The State practices the registration and certificate
issuances system for the right to use land and title to a housing
property.
Article 60 In the case of the right to use land that is obtained through
lease or allocation, it is necessary to apply for registration with the
land administration department of the people's government above the
county level, and through the verification of the department, the
people's government at the same level shall issue a land use
certificate.
When a building is finished on the land for real estate development
with the land use right obtained in accordance with the law, it is
necessary to apply, by presenting the land use certificate, with the
real estate administration department of the people's government above
the county level for registration, and through a proper verification,
the department should issue a real estate title certificate.
When a real estate is transferred or changed, an application should be
made with the real estate administration department of people's
government above the county level for registration of the change and
upon the modified title certificate, an application should be made with
the land administration department of the people's government at same
level for a change to the right of land use. After a verification by the
land administration department of the people's government at the same
level, the people's government at the same level shall renew or modify
the land use certificate.
If there are other stipulations by the law, the registration shall be
handled in accordance with such stipulations.
Article 61 When a real estate is mortgaged, an application should be
made with a department designated by the people's government above the
county level for registration.
When the right of land use with the title of the building(s) thereon is
obtained through a handling of the mortgaged housing property, a
registration of the transfer should be made in accordance with the
stipulations of this chapter.
Article 62 With affirmation of the provincial, autonomous
regional or municipal people's governments, a kind of title
certificate in a unified form should be unifiedly made and
disseminated by a department designated by a people's government above
the county level for unified administration of real estate and land in
accordance with Article 60 of this law, separately record the
verification and change of the building title and the use right of the
land on which the building is located in the real estate certificate.
CHAPTER VI LEGAL LIABILITIES
Article 63 In the case of an unauthorized approval for lease or lease
out of the right to use a land for real estate development in violation
of Article 10 and Article 11 of this law, the superior authorities or
the relevant department shall impose administrative penalty on the
persons responsible.
Article 64 For a violation of Article 29 of this law to engage in real
estate development without authorization and license, the
administration of industry and commerce of the people's government
above the county level shall order a stop of the development,
confiscate the illegal income and may impose a fine on the conduct
thereof.
Article 65 For a violation of Clause 1 of Article 38 of this law to
transfer the right of land use, the land administration department
of the people's government above the county level shall confiscate
the illegal income and may impose a fine on the conduct thereof.
Article 66 For a violation of Clause 1 of Article 39 of this law to
transfer real estate, the land administration department of the people's
government above the county level shall order a payment of the lease
fees of the right to use the land, confiscate the illegal income and may
impose a fine on the conduct thereof.
Article 67 For violation of Clause 1 of Article 44 of this law to sell
commodity houses in advance, the real estate administration department
of the people's government above the county level shall order a stop to
the sales, confiscate the illegal income and may impose a fine on the
conduct thereof.
Article 68 For a violation of Article 57 of this law to engage in real
estate intermediate service without authorization and license, the
administration for industry and commerce of the people's government
above the county level shall order a stop to the business of the real
estate intermediate service, confiscate the illegal income and may
impose a fine on the conduct thereof.
Article 69 For a levy of fee from real estate development
enterprises without legal basis, the superior department shall order a
return of the fee that has been paid; when the case is serious, the
superior department or the relevant department shall impose an
administrative penalty on the person(s) directly responsible.
Article 70 For a negligence of duty or abuse of power, a worker of the
real estate administration department or the land administration
department shall be investigated and be affixed with criminal
responsibility in accordance with the law if the case is serious enough
to constitute a crime and subjected to an administrative penalty if the
case does not constitute a crime.
For taking the advantage of power to extort other's wealth or illegally
accepting other's wealth to seek interest for other person(s), a worker
of the real estate administration department of the land administration
department shall be investigated and be affixed with criminal
responsibility in accordance with supplementary provisions on punishment
of graft and bribe crimes, if the case is serious enough to constitute a
crime and subjected to administrative penalty if the case does not
constitute a crime.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 71 Those who obtain the right to use the State-owned land for
real estate development outside the urban planning area, engage in real
estate development and transaction or carry out real estate
administration shall go through or handle the procedures with reference
to this law.
Article 72 This law shall come into effect on January 1, 1995. (Adopted by the Eighth Meeting of the Standing Committee of the Eighth
National People's Congress on July 5, 1994)
CONTENTS
CHAPTER I GENERAL PRINCIPLES
CHAPTER II LAND FOR REAL ESTATE DEVELOPMENT
PART 1 LEASING OF RIGHT OF LAND USE
PART 2 ALLOCATION OF RIGHT TO USE LAND
CHAPTER III REAL ESTATE DEVELOPMENT
CHAPTER IV TRANSACTIONS OF REAL ESTATE
PART 1 GENERAL PROVISIONS
PART 2 TRANSFER OF REAL ESTATE
PART 3 MORTGAGE OF REAL ESTATE
PART 4 LEASING OF HOUSES
PART 5 INTERMEDIATE SERVICE AGENCIES
CHAPTER V REGISTRATION OF REAL ESTATE TITLE
CHAPTER VI LEGAL LIABILITIES
CHAPTER VII SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PRINCIPLES
Article 1 This law is formulated for the purpose of safeguarding the
real estate market order, protecting lawful rights and interests of real
estate owners and promoting healthy development of the real estate
industry through a strengthening of urban real estate administration.
Article 2 Those who acquire the right to use the State-owned land within
the designated urban area of the People's Republic of China (hereinafter
referred to as" State-owned land") for real estate development, engage
in real estate development or transactions of real estate and exercise
real estate administration shall abide by the law.
The buildings referred to in this law shall mean houses and other
structures on the land.
The real estate development referred to in this law shall mean the
activities of construction of infrastructures and buildings on the land
that the right to use the State-owned land has been assigned in
accordance with this law.
The transactions of real estate referred to in this law shall mean
transfer of real estate, mortgage of real estate and leasing of
buildings.
Article 3 The State practices system of using State-owned lands under
due compensation and terms of using the land except the use of State-
owned land allocated by the State according to this law.
Article 4 The State shall, in accordance with the social and economic
development level, supports construction of residential houses to
gradually improve the living conditions of local residents.
Article 5 Real estate owners shall abide by the laws and administrative
decrees and pay tax according to the law. The lawful rights and
interests of real estate owners are protected by the law against any
infringement by institutes and individuals.
Article 6 The administrative department in charge of construction and
the land administration department of the State Council shall administer
the work of real estate nationwide individually or cooperatively under
their own powers.
The organizational set-up and power of the real estate administration
and land administration departments of the local people's governments
above the county level shall be determined by the provincial, autonomous
regional or municipal people's governments.
CHAPTER II LAND FOR REAL ESTATE DEVELOPMENT
PART I LEASING OF RIGHT OF LAND USE
Article 7 Leasing the right of land use means that the State leases the
right of using the State-owned land to land users within a certain
period and the land users shall pay the State fees for using the land.
Article 8 For a collectively-owned land within a designated urban area,
it must be requisitioned and turned into State-owned land in accordance
with law first and then for leasing out to land users with due
compensation.
Article 9 The lease out of land for use must comply with the overall
land use plan, the urban plan and the annual construction land use plan.
Article 10 For leasing out the right of their land for real estate
development, they people's government above the country level must first
of all draft plans of total areas of land to be leased out in a year in
accordance with the control quotas assigned by the people's government
at or above the provincial level, and following the provisions of the
State Council, report to the State Council or provincial-level people's
government for endorsement.
Article 11 The right to use land shall be leased step by step in a
planned manner by city or county people's governments. A city or county
people's government and the urban planning, construction and real estate
administration departments shall jointly draft a plan on the tracts of
land to be leased out with their uses, term of use and other conditions,
and following the provisions of the State Council, report to the
empowered people's government for approval and then hand down the plan
to the land administration department of the city or county people's
government for execution.
The power consigned to county people's governments and the relevant
departments of the municipality directly under Central Government for
execution as referred to in the above paragraph shall be determined by
the municipal people's government.
Article 12 The right of use land shall be leased through auction,
bidding or negotiations between the related parties.
The right to use the land for construction of commercial, tourist,
recreational facilities or luxury housing must be leased out through
auction or bidding, when conditions permit; when conditions do not
permit and auction or bidding cannot be adopted, it may be leased
through negotiations between the related parties.
Prices for the use of the land leased out through negotiations between
related parties shall not be lower than the bottom price stipulated by
the State provisions.
Article 13 The maximum term of land use shall be stipulated by the
State Council.
Article 14 A written contract for the lease shall be signed on the
lease of the right to use land.
The contract for the lease of the right to use land shall be signed by
the land administration department of a city or county people's
government and land users.
Article 15 Land users shall pay the lease fees of the right to use land
in accordance with the contracts signed for the lease; when one fails to
pay the fees for the use of the land in accordance with the related
contract of the lease, the land administration department has the right
to rescind the contract and ask for compensation for violation of the
contract.
Article 16 When land users pay the lease fees for the right of land use
in accordance with the contract for the lease, the land administration
department of a city or county people's government must provide the land
in accordance with the contract for the lease; when the land is not
provided in accordance with the contract for the lease, the land user
has the right to cancel the contract with the fee handed over for the
use to be returned by the land administration department and the land
user may also ask for compensation for the violation of the contract.
Article 17 Land users who need to change the use of the land prescribed
by the contract must first of all get the consent from the land lessor
and the urban planning department of the city or county people's
government, sign an agreement for revision of the contract for the lease
of the right to use land or sign a new contract for the lease of the
right to use land and readjust the lease fees of the right to use land
accordingly.
Article 18 Lease fees for the right of land use must be handed over to
the financial department to be entered into the budget and used for the
construction of urban infrastructures and land development. The hand-
over procedure and the use of the lease fees for the right of land use
shall be stipulated by the State Council.
Article 19 The State shall not take back the right of land use that the
land users have obtained in accordance with the law before the
expiration of the agreed term prescribed in the contract; under special
circumstances, the State may take back the land in advance out of public
interest consideration in accordance with legal procedures and
corresponding compensation shall be given to the related land user in
accordance with the real term that the land had been used and the real
conditions of the land development.
Article 20 The right of land use shall terminate with extinction of the
land.
Article 21 Upon a continuous use of the land after expiration of the
agreed term prescribed by the contract, the land user has to apply for
extension at least one year before the expiration of the term. The
application shall be approved except that the tract of land needs to be
taken back out of public interest consideration. When extension is
approved, it is necessary to re-sign a contract for the use of the land
and pay fees accordingly for the use in accordance with the provisions.
When the agreed term prescribed by the contract for use of the land
expires and the land user has not applied for extension or the
application for extension has not been approved in accordance with the
provision of the above paragraph, the right to use the land shall be
returned to the State gratis.
PART II ALLOCATION OF RIGHT TO USE LAND
Article 22 The allocation of the right to use land shall mean the hand
over of a tract of land by the people's governments above the county
level for use by a land user in accordance with the law for
compensation, settlement, etc. or gratis.
The right of land use obtained through allocation in accordance with
this law, except those prescribed otherwise by the laws and
administrative rules, has no time limit.
Article 23 The right of land use for construction of the following
projects, may be allocated by the people's governments above the
country level when necessary:
(1) land used by State organs of for military purpose;
(2) land used for construction of urban infrastructures and public
utility;
(3) land used for construction of the State-supported key energy,
transport and water conservancy projects; and
(4) land used for other purpose stipulated by the laws and administrative
rules.
CHAPTER III REAL ESTATE DEVELOPMENT
Article 24 Real estate development should be made in strict accordance
with the urban developing plan under an overall planning, rational
layout, comprehensive development and balanced construction of all
facilities to achieve an integration of economic, social and
environmental effect.
Article 25 Those who have obtained the right of land use through lease
for real estate development must develop the land in accordance with the
use and term as prescribed by the contract for the land use. When the
development has not started one year later than the date for starting
the development as prescribed by the contract, an idle land fee less
than 20 percent of the lease fees for land use may be collected and when
the development has not started two years later, the right to use the
land may be taken back without any compensation, except that the delays
are caused by force majeure, the activities of government or
governmental departments, or the necessary preparatory work for starting
the development.
Article 26 The design and construction of a real estate development
project must comply with the State relevant standards and norms.
After its completion, a real estate development project must be
inspected and accepted before it can be put into operation.
Article 27 The right to use a land obtained in accordance with the law
may be evaluated to be turned into shares for a joint equity of
cooperative real estate venture in accordance with this law, the
relevant laws and administrative decrees.
Article 28 The State adopts preferential tax and other measures to
encourage and support real estate development enterprises to develop and
build residential buildings.
Article 29 A real estate development enterprise shall mean an enterprise
engaged in development and operation of real estate for the purpose of
profit. The establishment of a real estate development enterprise shall
have the following conditions:
(1) Its own name and organization;
(2) A fixed site for business operations;
(3) The registered capital complying with provisions of the State
Council;
(4) Sufficient professionals and technicians; and
(5) Other conditions prescribed by the law and administrative decrees.
To establish a real estate development enterprise, a registration
should be made with the Administration for Industry and Commerce. The
Administration for Industry and Commerce shall handle registration
procedures of those which comply with conditions as prescribed by this
law and issue licenses to them; and refuse to handle registration
procedures of those which do not comply with conditions prescribed by
this law.
Those which establish a limited liability company or limited stock
company to engage in real estate development and operations shall also
execute the relevant provisions of the Corporate Law.
A real estate enterprise shall report for record to a department
designated by the people's government above county level where the
registration department is located within one month after obtaining the
license.
Article 30 The ratio between the registered capital and the total
investment of a real estate enterprise must comply with the relevant
State provisions.
When a real estate enterprise develops a real estate project in phases,
the amount of investment in each phase shall suit the project scale of
that phase and, in accordance with the provisions of the contract for
the lease of the right to use land, funds shall be put into construction
on schedule.
CHAPTER IV TRANSACTIONS OF REAL ESTATE
PART 1 GENERAL PROVISIONS
Article 31 When a real estate is transferred or mortgaged, the ownership
of the building and the right to use the land occupied by the building
are transferred or mortgaged at the same time.
Article 32 The standard land prices, the nominal land prices and the
appraised prices of various buildings shall be determined and published
regularly. The specific methods shall be stipulated by the State Council.
Article 33 The State institutes a real estate price evaluation system.
The evaluation of price for a real estate follows the principles of
being just, fair and public in accordance with the technological
standards and evaluation procedures as stipulated by the State basing on
the standard land price, nominal land price and the appraised prices of
various buildings and referred to the local market prices.
Article 34 The State institutes a report schedule for real estate
transacted price.
Owners of real estate right who transfer real estate shall report the
real settlement price to the department designated by the local people's
government above the county level. None shall conceal a transfer or make
untrue report.
Article 35 When a real estate is transferred or mortgaged, the parties
involved shall go through the title registration procedures in
accordance with the provisions of Chapter V of this law.
PART 2 TRANSFER OF REAL ESTATE
Article 36 Transfer of real estate shall mean the move of the ownership
of a real estate from the original owner to another person through sale,
donation and other lawful means.
Article 37 Real estate with following conditions shall not be
transferred:
(1) The acquirement of the right of land use through lease does not
comply with conditions as prescribed in Article 38 of this law;
(2) The title to the real estate has been sealed up or restricted in any
form upon ruling or deciding of judicial authorities or administrative
departments in accordance with the law;
(3) The right of land use has been taken back in accordance with the
law;
(4) Without a written consent of other owners as under joint ownership;
(5) There are disputes on the title;
(6) Those which have not been registered and obtained title certificates
in accordance with the law; and
(7) Other condition that the transfer is forbidden according to the law
or administrative rules.
Article 38 The transfer of real estate with the right of land use shall
comply with the following conditions:
(1) All the fees in concern with the lease of the right of land use have
been paid in accordance with provisions prescribed by the contract for
the lease and the certificate of the right to use the land has been
obtained; and
(2) Investment and development have been done in accordance with the
provisions prescribed by the contract for the lease; for housing
construction projects, 25 percent of the total investment has gone
through; for development of large tracts of land, land has been
available for the construction of industrial or other projects.
When a real estate is transferred with a finished building, title
certificate for the building is also needed.
Article 39 When transfer of a real estate with the right of land use
being obtained through allocation, an application should be submitted to
an empowered people's government for approval, in accordance with the
provisions of the State Council government. After the approval by a
related people's government, the transferee shall go through the
procedures for transfer of the right of land use and pay lease fees for
land use in accordance with the relevant State provisions.
If the related people's government refuses to carry out the procedures
of the transfer of right of land use in accordance with the provisions of the State Council, the transferor shall, in accordance with the provisions of the State Council, hand over the income for transfer of the land arising form the transfer of real estate to the State or handle
them otherwise.
Article 40 A written contract must be signed in real estate transfer,
and the contract shall carry the clause on the form of obtaining the
right of land use.
Article 41 When a real estate is transferred, the rights and obligations
carried in the contract for the lease of the right of land use are
transferred accordingly.
Article 42 When transfer of a real estate with the right of land use
obtained through lease, the term of the right to use the land is the
remaining time of the term prescribed by the original contract after
deducting the time that the land has been actually used by the original
land user.
Article 43 After the transfer of a real estate with the right of land
use obtained through lease, if the transferee wants to change the use of
the land prescribed by the original contract for the lease of the right
of land use a consent must be acquired from the transferor and the urban
planning department of the city county people's government with an
agreement signed on revision of the contract or a signing of a contract
with an adjustment of the lease fees of the right of land use.
Article 44 An advanced sale of commodity houses must meet the following
conditions:
(1) All the lease fees of the right of land use have been paid and a
land use certificate has been obtained;
(2) A construction planning permit has been held;
(3) Funds put for construction of the houses for advanced sale have
exceeded 25 percent of the total budgetary investment for the project
and the construction schedule and date of completion of the project have
been set; and
(4) An advance sales registration has been made with the real estate
administration of the people's government above the county level and a
permit of advance sales of commodities house has been obtained.
The advance seller of the commodity houses shall, in accordance with the
relevant State provisions, report the advance sales contracts for record
to real estate administration and land administration departments of the
people's government above the county level.
The funds derived from advance sales of commodity houses must be used in
construction of the relevant projects.
Article 45 The procedures for the transfer of houses in advance sales by
the buyers of the houses will be stipulated by the State Council.
PART 3 MORTGAGE OF REAL ESTATE
Article 46 Mortgage of real estate shall mean provision of legal real
estate in non-transfer mode by the debtor to mortgagee as guarantee of
debt payment. When the debtor fails to carry out the debt service, the
mortgagee has the priority of being paid back first through the auction
of the mortgaged real estate according to law.
Article 47 The title of a housing property plus the right to use the
land occupied by the housing property obtained lawfully may be
designated as mortgage right.
The right to use land obtained through lease may be used as a mortgage.
Article 48 The mortgage of real estate shall be made upon the
presentation of the land use certificate and housing property title
certificate.
Article 49 In mortgage of real estate, the mortgagor and mortgagee shall
sign a written mortgage contract.
Article 50 In mortgage of real estate with the right of land use
obtained through allocation, the mortgagor has the priority to be paid
first only after a fund equivalent to the lease fees for the right to
use the land has been paid upon an auction of the real estate according
to law.
Article 51 After a real estate mortgage contract is signed, the newly
added housing property on the land does not belong to the mortgaged
property. When the mortgaged real estate must be auctioned, the newly
added housing property may be auctioned together with the mortgaged
property, but for the fund derived from the auction of the newly added
housing property, the mortgagee has not the priority for first payment.
PART 4 LEASING OF HOUSES
Article 52 The leasing of houses shall mean ranting of houses with a
certain amount of rental paid by lessees to the lessors.
Article 53 When leasing a house, the lessor and lessee shall sign a
written lease contract, prescribing such provisions as the leasing
term, use of the house, rental and repair liabilities, and other rights
and obligations of both parties; and go through registration procedures
for record with the real estate administration department.
Article 54 When leasing a residential house, it is necessary to
implement the leasing policy stipulated by the State and the people's
government of the city where the house is located. When leasing a house
for production or commercial use the two parties for the leasing shall
determine the rental and other terms of lease through consultation.
Article 55 When the owner of a house rents out a house built on the
State-owned land with the right to use the land through allocation for
a profit, the rental arising from the land shall be handed over to the
State. The specific methods shall be stipulated by the State Council.
PART 5 INTERMEDIATE SERVICE AGENCIES
Article 56 The real estate intermediate service agencies include real
estate consultants, real estate evaluation agencies and real estate
brokerages.
Article 57 A real estate intermediate service agency shall meet the
following conditions:
(1) It has an own title and organization;
(2) It has a fixed business site;
(3) It has the necessary assets and funds;
(4) It has a sufficient number of professionals; and
(5) It has other conditions stipulated by the laws and administrative
rules.
The establishment of a real estate intermediate service agency shall
apply to the administration for industry and commerce for registration
and a license before it goes into operation.
Article 58 A real estate evaluation person should go through an
assessment by a qualification agency.
CHAPTER V REGISTRATION OF REAL ESTATE TITLE
Article 59 The State practices the registration and certificate
issuances system for the right to use land and title to a housing
property.
Article 60 In the case of the right to use land that is obtained through
lease or allocation, it is necessary to apply for registration with the
land administration department of the people's government above the
county level, and through the verification of the department, the
people's government at the same level shall issue a land use
certificate.
When a building is finished on the land for real estate development
with the land use right obtained in accordance with the law, it is
necessary to apply, by presenting the land use certificate, with the
real estate administration department of the people's government above
the county level for registration, and through a proper verification,
the department should issue a real estate title certificate.
When a real estate is transferred or changed, an application should be
made with the real estate administration department of people's
government above the county level for registration of the change and
upon the modified title certificate, an application should be made with
the land administration department of the people's government at same
level for a change to the right of land use. After a verification by the
land administration department of the people's government at the same
level, the people's government at the same level shall renew or modify
the land use certificate.
If there are other stipulations by the law, the registration shall be
handled in accordance with such stipulations.
Article 61 When a real estate is mortgaged, an application should be
made with a department designated by the people's government above the
county level for registration.
When the right of land use with the title of the building(s) thereon is
obtained through a handling of the mortgaged housing property, a
registration of the transfer should be made in accordance with the
stipulations of this chapter.
Article 62 With affirmation of the provincial, autonomous
regional or municipal people's governments, a kind of title
certificate in a unified form should be unifiedly made and
disseminated by a department designated by a people's government above
the county level for unified administration of real estate and land in
accordance with Article 60 of this law, separately record the
verification and change of the building title and the use right of the
land on which the building is located in the real estate certificate.
CHAPTER VI LEGAL LIABILITIES
Article 63 In the case of an unauthorized approval for lease or lease
out of the right to use a land for real estate development in violation
of Article 10 and Article 11 of this law, the superior authorities or
the relevant department shall impose administrative penalty on the
persons responsible.
Article 64 For a violation of Article 29 of this law to engage in real
estate development without authorization and license, the
administration of industry and commerce of the people's government
above the county level shall order a stop of the development,
confiscate the illegal income and may impose a fine on the conduct
thereof.
Article 65 For a violation of Clause 1 of Article 38 of this law to
transfer the right of land use, the land administration department
of the people's government above the county level shall confiscate
the illegal income and may impose a fine on the conduct thereof.
Article 66 For a violation of Clause 1 of Article 39 of this law to
transfer real estate, the land administration department of the people's
government above the county level shall order a payment of the lease
fees of the right to use the land, confiscate the illegal income and may
impose a fine on the conduct thereof.
Article 67 For violation of Clause 1 of Article 44 of this law to sell
commodity houses in advance, the real estate administration department
of the people's government above the county level shall order a stop to
the sales, confiscate the illegal income and may impose a fine on the
conduct thereof.
Article 68 For a violation of Article 57 of this law to engage in real
estate intermediate service without authorization and license, the
administration for industry and commerce of the people's government
above the county level shall order a stop to the business of the real
estate intermediate service, confiscate the illegal income and may
impose a fine on the conduct thereof.
Article 69 For a levy of fee from real estate development
enterprises without legal basis, the superior department shall order a
return of the fee that has been paid; when the case is serious, the
superior department or the relevant department shall impose an
administrative penalty on the person(s) directly responsible.
Article 70 For a negligence of duty or abuse of power, a worker of the
real estate administration department or the land administration
department shall be investigated and be affixed with criminal
responsibility in accordance with the law if the case is serious enough
to constitute a crime and subjected to an administrative penalty if the
case does not constitute a crime.
For taking the advantage of power to extort other's wealth or illegally
accepting other's wealth to seek interest for other person(s), a worker
of the real estate administration department of the land administration
department shall be investigated and be affixed with criminal
responsibility in accordance with supplementary provisions on punishment
of graft and bribe crimes, if the case is serious enough to constitute a
crime and subjected to administrative penalty if the case does not
constitute a crime.
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 71 Those who obtain the right to use the State-owned land for
real estate development outside the urban planning area, engage in real
estate development and transaction or carry out real estate
administration shall go through or handle the procedures with reference
to this law.
Article 72 This law shall come into effect on January 1, 1995.
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