Interpretations of the Supreme People's Court on the Application of Law for the Trial of Cases of Disputes on Contracts Involving the Right to Use State-owned Land

Interpretation of the Supreme People's Court on the Application of Law for the Trial of Cases of Disputes on Contracts Involving the Right to Use State-owned Land

Fa Shi [2005] No. 5

June 18, 2005

(Adopted at the 1334th meeting of the Judicial Committee of the Supreme People's Court on November 23, 2004)


Announcement of the Supreme People's Court


The Interpretation of the Supreme People's Court on the Application of Law for the Trial of Cases of Disputes on Contracts Involving the Right to Use State-owned Land, which was adopted at the 1334th meeting of the Judicial Committee of the Supreme People's Court on November 23, 2004, is hereby promulgated and shall come into force as of August 1, 2005.

This Interpretation is formulated according to the provisions of such laws as the General Principles of Civil Law of the People's Republic of China, the Contract Law of the People's Republic of China, the Land Administration Law of the People's Republic of China and the Law of the People's Republic of China on the Administration of Urban Real Estate and the practice of civil adjudication concerning the issues on the application of law for the trial of cases of disputes on contracts involving the right to use state-owned land.

Chapter I Disputes over the Assignment Contract of Land Use Right
　
Article 1 The term "the assignment contract of land use right" as mentioned in this Interpretation refers to the contract in which the administrative department of land of the people's government of a city or county, as the assigner, transfers the right to use state-owned land within a certain term to the assignee who shall pay the assignment fees for the land use right.
　
Article 2 Any assignment contract of land use right as concluded between the administrative committee of the development zone, as the assigner, and the assignee shall be deemed as invalid.
The assignment contract of land use right as concluded between the administrative committee of the development zone, as the assigner, and the assignee before the implementation of this Interpretation may be deemed as effective if it has been ratified by the administrative department of land of the people's government of a city or county before any litigation is filed.
　
Article 3 For the land use right that has been approved by the people's government of a city or county for assignment by contractual means, where the assignment fees of the land use right is lower than the minimum price as decided in light of the state provisions by the local people's government when the contract is concluded, the price clause as stipulated in the assignment contact of land use right shall be deemed as invalid.
Where the party concerned asks to pay the assignment fees of land use right in light of the market evaluation price when the contract is concluded, it shall be supported; where the assignee refuses to make up in light of the market evaluation price and asks to terminate the contract, it shall be supported.
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