Law of the People's Republic of China on the Administration of Urban Real Estate (Amended in 2009)
Law of the People's Republic of China on the Administration of Urban Real Estate (Amended in 2009)
Law of the People's Republic of China on the Administration of Urban Real Estate (Amended in 2009)
Order of the President of the People's Republic of China No. 18
August 27, 2009
(Adopted at the 8th session of the Standing Committee of the 8th National People's Congress on July 5, 2007; promulgated by the Order of the President [2007] No. 72 on July 5, 2007; amended for the first time according to the Decision on Revising the Law of the People's Republic of China on the Administration of Urban Real Estate adopted at the 29th session of the Standing Committee of the 10th National People's Congress on August 30, 2007; and amended for the second time based on the Decision on Amending Certain Laws which was adopted at the 10th session of the Standing Committee of the 11th National People's Congress on August 27, 2009)
Table of Contents
Chapter I General Provisions
Chapter II Land Used for Real Estate Development
Section 1 Grant of Land Use Rights
Section 2 Allocation of Land Use Rights
Chapter III Real Estate Development
Chapter IV Real Estate Transactions
Section 1 General Rules
Section 2 Assignment of Real Estate
Section 3 Mortgage of Real Estate
Section 4 Leasing of Buildings
Section 5 Intermediary Service Organizations
Chapter V Administration of Real Estate Title Registration
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted in order to strengthen the administration of urban real estate, maintain the order of the real estate market, safeguard the lawful rights and interests of owners of real estate rights and promote the healthy development of the real estate industry.
Article 2 Those who, within the scope of state-owned land in urban planning areas of the People's Republic of China (hereinafter referred to as "state-owned land"), obtain land use rights in land for real estate development, engage in real estate development and transactions and implement real estate administration shall be subject to this Law.
For the purposes of this Law, the term "buildings" refers to houses and other buildings and structures built on land.
For the purposes of this Law, the term "real estate development" refers to an act of constructing infrastructure and buildings on the land the state-owned land use rights of which have been acquired in accordance with this Law.
For the purposes of this Law, the term "real estate transactions" includes assignment and mortgage of real estate, and leasing of buildings.
Article 3 The state implements a system for compensation for using state-owned land for a limited term in accordance with the law, except where state-owned land use rights are allocated by the state within the scope prescribed in this Law.
Article 4 The state, based on the social and economic development, supports and develops the construction of residential premises and gradually improves the housing conditions of residents.
Article 5 Owners of real estate rights shall comply with laws and administrative regulations by making tax payment in accordance with the law. The lawful rights and interests of owners of real estate shall be protected by law and may not be infringed by any entity or individual.
Article 6 The state may expropriate the houses of entities and individuals on state-owned land for public interests and make compensation for removal in accordance with the law to protect the lawful rights and interests of the parties subject to the expropriation. Where individuals' residential premises are expropriated, the housing conditions of the parties subject to the expropriation shall also be protected. The specific procedures shall be formulated by the State Council.
Article 7 The administrative department in charge of construction and land administration under the State Council shall, in accordance with the function and power specified by the State Council, perform their own function and closely coordinate with each other to handle the nationwide real estate administration work.
The structural establishment, function and power of real estate or land administration departments of local people's governments at or above the county level shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.
Chapter II Land Used for Real Estate Development
Section 1 Grant of Land Use Rights
Article 8 The term "grant of land use rights" refers to the an act where the State grants to a land user state-owned land use rights (hereinafter referred to as "land use rights") for a specific number of years and the land user pays to the state the fees for the grant of land use rights.
Article 9 The use rights of collectively-owned land in urban planning areas may be granted with compensation only after such land is converted into state-owned land through legal expropriation.
(Relevant articles: Legislation 1)
Article 10 The grant of land use rights must comply with general plans for land utilization, urban plans, and annual plans for land for construction.
Article 11 Local people's governments at or above the county level that grant land use rights for real estate development must, in accordance with the control indicators issued by the people's governments at or above the provincial level, formulate the annual proposal on the total area of land the use rights of which may be granted, and submit such proposal to the State Council or the people's governments at the provincial level for approval in accordance with the provisions of the State Council.
Article 12 The grant of land use rights shall be conducted by the people's government of a city or county in a planned and systematic manner. The land administration department of the people's government of a city or county shall, in conjunction with the departments of urban planning, construction and real estate administration, formulate a plan for the grant, purposes, term and other conditions of each lot of land. Such plan shall be submitted in accordance with the provisions of the State Council to the people's government with approval authority for approval before be implemented by the land administration department of the people's government of a city or county.
The limit of the authority provided in the preceding paragraph which is exercised by the people's government of a county within a municipality directly under the Central Government and its relevant departments shall be prescribed by the people's government of the municipality directly under the Central Government.
Article 13 Land use rights may be granted by means of auction, bid invitation or bilateral agreement.
With regard to land for commerce, tourism, entertainment or construction of luxury residential premises, if conditions permit, auction or bid invitation must be adopted; if conditions do not permit, auction or bid invitation may not be adopted, and bilateral agreement may be adopted.
The fee for the grant of land use rights through bilateral agreement may not be less than the minimum price as determined in accordance with the provisions of the state.
Article 14 The maximum term of the grant of land use rights shall be prescribed by the State Council.
Article 15 With regard to the grant of land use rights, a written grant contract shall be concluded.
A contract for the grant of land use rights shall be concluded between the land administration department of the people's government of a city or county and a land user.
Article 16 A land user must pay the fee for the grant of land use rights in accordance with the grant contract; in the event of failure to pay such fee in accordance with the grant contract, the relevant land administration department has the right to rescind the contract and may also claim for liquidated damages.
Article 17 Where a land user pays the fee for the grant of land use rights in accordance with the grant contract, the land administration department of the people's government of a city or county must, in accordance with the grant contract, provide the land to be granted; in the event of failure to provide such land in accordance with the grant contract, the land user has the right to rescind the contract, the land administration department shall refund the fee for the grant of land use rights, and the land user may also claim for liquidated damages.
Article 18 Where a land user needs to change the purposes of land as stipulated in a contract for the grant of land use rights, the land user must obtain the consent of the grantor and the approval of the administrative department in charge of urban planning of the people's government of a city or county, and conclude an agreement on the change of the contract for the grant of land use rights or a new contract for the grant of land use rights, and the fee for the grant of land use rights shall be adjusted accordingly.
Article 19 Fees for the grant of land use rights shall be submitted to the finance authorities in full and included in budget for the construction of urban infrastructure and the land development.
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Order of the President of the People's Republic of China No. 18
August 27, 2009
(Adopted at the 8th session of the Standing Committee of the 8th National People's Congress on July 5, 2007; promulgated by the Order of the President [2007] No. 72 on July 5, 2007; amended for the first time according to the Decision on Revising the Law of the People's Republic of China on the Administration of Urban Real Estate adopted at the 29th session of the Standing Committee of the 10th National People's Congress on August 30, 2007; and amended for the second time based on the Decision on Amending Certain Laws which was adopted at the 10th session of the Standing Committee of the 11th National People's Congress on August 27, 2009)
Table of Contents
Chapter I General Provisions
Chapter II Land Used for Real Estate Development
Section 1 Grant of Land Use Rights
Section 2 Allocation of Land Use Rights
Chapter III Real Estate Development
Chapter IV Real Estate Transactions
Section 1 General Rules
Section 2 Assignment of Real Estate
Section 3 Mortgage of Real Estate
Section 4 Leasing of Buildings
Section 5 Intermediary Service Organizations
Chapter V Administration of Real Estate Title Registration
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted in order to strengthen the administration of urban real estate, maintain the order of the real estate market, safeguard the lawful rights and interests of owners of real estate rights and promote the healthy development of the real estate industry.
Article 2 Those who, within the scope of state-owned land in urban planning areas of the People's Republic of China (hereinafter referred to as "state-owned land"), obtain land use rights in land for real estate development, engage in real estate development and transactions and implement real estate administration shall be subject to this Law.
For the purposes of this Law, the term "buildings" refers to houses and other buildings and structures built on land.
For the purposes of this Law, the term "real estate development" refers to an act of constructing infrastructure and buildings on the land the state-owned land use rights of which have been acquired in accordance with this Law.
For the purposes of this Law, the term "real estate transactions" includes assignment and mortgage of real estate, and leasing of buildings.
Article 3 The state implements a system for compensation for using state-owned land for a limited term in accordance with the law, except where state-owned land use rights are allocated by the state within the scope prescribed in this Law.
Article 4 The state, based on the social and economic development, supports and develops the construction of residential premises and gradually improves the housing conditions of residents.
Article 5 Owners of real estate rights shall comply with laws and administrative regulations by making tax payment in accordance with the law. The lawful rights and interests of owners of real estate shall be protected by law and may not be infringed by any entity or individual.
Article 6 The state may expropriate the houses of entities and individuals on state-owned land for public interests and make compensation for removal in accordance with the law to protect the lawful rights and interests of the parties subject to the expropriation. Where individuals' residential premises are expropriated, the housing conditions of the parties subject to the expropriation shall also be protected. The specific procedures shall be formulated by the State Council.
Article 7 The administrative department in charge of construction and land administration under the State Council shall, in accordance with the function and power specified by the State Council, perform their own function and closely coordinate with each other to handle the nationwide real estate administration work.
The structural establishment, function and power of real estate or land administration departments of local people's governments at or above the county level shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.
Chapter II Land Used for Real Estate Development
Section 1 Grant of Land Use Rights
Article 8 The term "grant of land use rights" refers to the an act where the State grants to a land user state-owned land use rights (hereinafter referred to as "land use rights") for a specific number of years and the land user pays to the state the fees for the grant of land use rights.
Article 9 The use rights of collectively-owned land in urban planning areas may be granted with compensation only after such land is converted into state-owned land through legal expropriation.
(Relevant articles: Legislation 1)
Article 10 The grant of land use rights must comply with general plans for land utilization, urban plans, and annual plans for land for construction.
Article 11 Local people's governments at or above the county level that grant land use rights for real estate development must, in accordance with the control indicators issued by the people's governments at or above the provincial level, formulate the annual proposal on the total area of land the use rights of which may be granted, and submit such proposal to the State Council or the people's governments at the provincial level for approval in accordance with the provisions of the State Council.
Article 12 The grant of land use rights shall be conducted by the people's government of a city or county in a planned and systematic manner. The land administration department of the people's government of a city or county shall, in conjunction with the departments of urban planning, construction and real estate administration, formulate a plan for the grant, purposes, term and other conditions of each lot of land. Such plan shall be submitted in accordance with the provisions of the State Council to the people's government with approval authority for approval before be implemented by the land administration department of the people's government of a city or county.
The limit of the authority provided in the preceding paragraph which is exercised by the people's government of a county within a municipality directly under the Central Government and its relevant departments shall be prescribed by the people's government of the municipality directly under the Central Government.
Article 13 Land use rights may be granted by means of auction, bid invitation or bilateral agreement.
With regard to land for commerce, tourism, entertainment or construction of luxury residential premises, if conditions permit, auction or bid invitation must be adopted; if conditions do not permit, auction or bid invitation may not be adopted, and bilateral agreement may be adopted.
The fee for the grant of land use rights through bilateral agreement may not be less than the minimum price as determined in accordance with the provisions of the state.
Article 14 The maximum term of the grant of land use rights shall be prescribed by the State Council.
Article 15 With regard to the grant of land use rights, a written grant contract shall be concluded.
A contract for the grant of land use rights shall be concluded between the land administration department of the people's government of a city or county and a land user.
Article 16 A land user must pay the fee for the grant of land use rights in accordance with the grant contract; in the event of failure to pay such fee in accordance with the grant contract, the relevant land administration department has the right to rescind the contract and may also claim for liquidated damages.
Article 17 Where a land user pays the fee for the grant of land use rights in accordance with the grant contract, the land administration department of the people's government of a city or county must, in accordance with the grant contract, provide the land to be granted; in the event of failure to provide such land in accordance with the grant contract, the land user has the right to rescind the contract, the land administration department shall refund the fee for the grant of land use rights, and the land user may also claim for liquidated damages.
Article 18 Where a land user needs to change the purposes of land as stipulated in a contract for the grant of land use rights, the land user must obtain the consent of the grantor and the approval of the administrative department in charge of urban planning of the people's government of a city or county, and conclude an agreement on the change of the contract for the grant of land use rights or a new contract for the grant of land use rights, and the fee for the grant of land use rights shall be adjusted accordingly.
Article 19 Fees for the grant of land use rights shall be submitted to the finance authorities in full and included in budget for the construction of urban infrastructure and the land development.
......