(On July 5th, 1994, the 8th meeting of the 8th the NPC Standing Committee passed the first amendment according to the Decision on Amending the Urban Real Estate Management Law of People’s Republic of China (PRC) of the 29th meeting of the 10th the NPC Standing Committee on August 30th, 2007, and the second amendment according to the Decision on Amending Some Laws of the 10th meeting of the 11th the NPC Standing Committee on August 27th, 2009. The amendment is based on the Decision on Amending the Land Administration Law of the People’s Republic of China and the Urban Real Estate Administration Law of People’s Republic of China (PRC) at the 12th meeting of the 13th the NPC Standing Committee on August 26th, 2019).
Catalogue
Chapter I General Provisions
Chapter II Land for Real Estate Development
Section 1 Transfer of Land Use Rights
Section 2 Allocation of Land Use Rights
Chapter III Real Estate Development
Chapter IV Real Estate Transactions
Section 1 General Provisions
Section 2 Transfer of Real Estate
Section 3 Real Estate Mortgage
Section 4 Housing Lease
Section 5 Intermediary service institutions
Chapter V Registration Management of Real Estate Ownership
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is formulated with a view to strengthening the management of urban real estate, maintaining the order of the real estate market, safeguarding the legitimate rights and interests of real estate owners and promoting the healthy development of the real estate industry.
Article 2 This Law shall be observed in obtaining the land use right of real estate development land, engaging in real estate development, real estate transaction and real estate management within the state-owned land in People’s Republic of China (PRC) urban planning area (hereinafter referred to as state-owned land).
The term "houses" as mentioned in this Law refers to buildings and structures such as houses on land.
The term "real estate development" as mentioned in this Law refers to the construction of infrastructure and houses on the land that has obtained the right to use state-owned land according to this Law.
Real estate transactions mentioned in this Law include real estate transfer, real estate mortgage and house lease.
Article 3 The state practices a system of paid and limited use of state-owned land according to law. However, unless the state allocates the right to use state-owned land within the scope prescribed by this law.
Article 4 The state shall, according to the level of social and economic development, support the development of residential buildings and gradually improve the living conditions of residents.
Fifth real estate owners should abide by laws and administrative regulations and pay taxes according to law. The legitimate rights and interests of real estate owners are protected by law, and no unit or individual may infringe upon them.
Article 6 In order to meet the needs of public interests, the state may expropriate the houses of units and individuals on state-owned land, and give compensation for demolition according to law, so as to safeguard the legitimate rights and interests of the expropriated person; Where individual houses are expropriated, the living conditions of the expropriated person shall also be guaranteed. The specific measures shall be formulated by the State Council.
Seventh the State Council construction administrative departments and land management departments shall, in accordance with the division of functions and powers stipulated by the State Council, carry out their duties and cooperate closely to manage the national real estate work.
The establishment of the real estate management and land management departments of local people’s governments at or above the county level and their functions and powers shall be determined by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.
Chapter II Land for Real Estate Development
Section 1 Transfer of Land Use Rights
Article 8 Transfer of land use right refers to the act that the state transfers the state-owned land use right (hereinafter referred to as land use right) to land users within a certain period of time, and the land users pay the land use right transfer fee to the state.
Article 9 The right to use the collectively-owned land in a planned urban area can only be transferred with compensation after it has been expropriated and turned into state-owned land according to law, except as otherwise provided by law.
Article 10 The assignment of land use rights must conform to the overall land use planning, urban planning and annual construction land plan.
Article 11 Where a local people’s government at or above the county level transfers the land use right for real estate development, it shall draw up an annual plan for transferring the total area of land use right according to the control indicators issued by the people’s government at or above the provincial level, and submit it to the State Council or the provincial people’s government for approval in accordance with the provisions of the State Council.
Twelfth land use rights transfer, by the city and county people’s government in a planned and step-by-step manner. The land management department of the people’s government of the city or county shall, jointly with the urban planning, construction and real estate management departments, draw up a plan for each plot, use, life and other conditions, and implement it after being approved by the people’s government with the right of approval in accordance with the provisions of the State Council.
The exercise of the powers prescribed in the preceding paragraph by the county people’s governments of municipalities directly under the Central Government and their relevant departments shall be prescribed by the people’s governments of municipalities directly under the Central Government.
Thirteenth transfer of land use rights, can take the form of auction, bidding or mutual agreement.
Commercial, tourism, entertainment and luxury residential land, conditional, must be taken by auction and tender; If auction or tender cannot be adopted without conditions, it can be agreed by both parties.
The transfer fee for transferring the land use right by mutual agreement shall not be lower than the lowest price determined by the state.
Article 14 The maximum term of assignment of land use rights shall be stipulated by the State Council.
Fifteenth transfer of land use rights, a written transfer contract shall be signed.
The land use right transfer contract is signed by the land management department of the people’s government of the city or county and the land user.
Sixteenth land users must pay the transfer fee for land use rights in accordance with the transfer contract; Failing to pay the transfer fee for the land use right as agreed in the transfer contract, the land management department has the right to terminate the contract and may request compensation for breach of contract.
Seventeenth land users in accordance with the transfer contract to pay the transfer fee of land use rights, the land management department of the people’s government of the city or county must provide the land sold in accordance with the transfer contract; If the leased land is not provided in accordance with the transfer contract, the land user has the right to terminate the contract, and the land management department will return the land use right transfer fee, and the land user may also request compensation for breach of contract.
Article 18 If a land user needs to change the land use agreed in the land use right transfer contract, he must obtain the consent of the transferor and the competent department of urban planning administration of the municipal or county people’s government, sign an agreement on the change of the land use right transfer contract or re-sign the land use right transfer contract, and adjust the land use right transfer fee accordingly.
Nineteenth land use rights transfer fees should be turned over to the finance, included in the budget, for urban infrastructure construction and land development. The specific measures for the payment and use of land use right transfer fees shall be formulated by the State Council.
Article 20 The state shall not take back the land use right legally obtained by land users before the expiration of the service life stipulated in the transfer contract; Under special circumstances, according to the needs of social public interests, it can be recovered in advance in accordance with legal procedures, and corresponding compensation can be given according to the actual years of land use and the actual situation of land development by land users.
Twenty-first land use rights shall be terminated due to the loss of land.
Twenty-second land use rights transfer contract expires, the land users need to continue to use the land, should apply for renewal at the latest one year before the expiration, except for the need to recover the land according to social and public interests, it should be approved. If the renewal is approved, the land use right transfer contract shall be re-signed and the land use right transfer fee shall be paid in accordance with the regulations.
The land use right transfer contract expires, and the land user fails to apply for renewal, or if the application for renewal is not approved in accordance with the provisions of the preceding paragraph, the land use right shall be recovered by the state free of charge.
Section 2 Allocation of Land Use Rights
Article 23 The allocation of land use right refers to the act that the people’s government at or above the county level approves the land user to use it after paying compensation, resettlement and other expenses, or the land use right is delivered to the land user for free.
Unless otherwise provided by laws and administrative regulations, there is no restriction on the term of use if the land use right is obtained by allocation in accordance with the provisions of this Law.
Twenty-fourth the following construction land use rights, which are really necessary, can be approved by the people’s governments at or above the county level according to law:
(a) land for state organs and military use;
(2) Land for urban infrastructure and public welfare undertakings;
(3) Land for energy, transportation, water conservancy and other projects supported by the state;
(four) other land as prescribed by laws and administrative regulations.
Chapter III Real Estate Development
Twenty-fifth real estate development must strictly implement urban planning, and implement comprehensive planning, rational layout, comprehensive development and supporting construction in accordance with the principle of unity of economic benefits, social benefits and environmental benefits.
Twenty-sixth to obtain land use rights for real estate development by means of transfer, the land must be developed in accordance with the land use and the development period agreed in the land use right transfer contract. If the development has not started for one year beyond the date agreed in the transfer contract, a land idle fee equivalent to less than 20% of the transfer fee for land use rights may be levied; If the development has not started for two years, the land use right can be recovered free of charge; However, unless the commencement of development is delayed due to force majeure or the actions of the government and relevant government departments or the preliminary work necessary for the commencement of development.
Article 27 The design and construction of real estate development projects must conform to the relevant national standards and norms.
Real estate development projects can only be delivered after they are completed and accepted.
Article 28 Land use rights obtained according to law may be invested in shares at a fixed price for joint venture and cooperation in the development and operation of real estate in accordance with this Law and relevant laws and administrative regulations.
Article 29 The State shall adopt preferential measures such as taxation to encourage and support real estate development enterprises to develop and build residential houses.
Thirtieth real estate development enterprises are enterprises engaged in real estate development and management for the purpose of making profits. The establishment of a real estate development enterprise shall meet the following conditions:
(1) Having its own name and organization;
(2) Having a fixed business place;
(3) Having a registered capital meeting the requirements of the State Council;
(four) there are enough professional and technical personnel;
(5) Other conditions stipulated by laws and administrative regulations.
The establishment of a real estate development enterprise shall apply to the administrative department for industry and commerce for registration of establishment. The administrative department for industry and commerce shall register and issue a business license to those who meet the requirements stipulated in this law; Those who do not meet the requirements stipulated in this law shall not be registered.
Where a limited liability company or a joint stock limited company is established to engage in real estate development and operation, the relevant provisions of the Company Law shall also be implemented.
A real estate development enterprise shall, within one month after receiving its business license, go to the department designated by the local people’s government at or above the county level where the registration authority is located for the record.
Thirty-first real estate development enterprises registered capital and total investment ratio shall comply with the relevant provisions of the state.
If a real estate development enterprise develops real estate by stages, the amount of investment by stages shall be commensurate with the scale of the project, and in accordance with the stipulations of the land use right transfer contract, it shall invest funds on schedule for the project construction.
Chapter IV Real Estate Transactions
Section 1 General Provisions
Article 32 When real estate is transferred or mortgaged, the ownership of the house and the land use right within the occupied area of the house shall be transferred and mortgaged at the same time.
Thirty-third benchmark land price, demarcation land price and the replacement price of all kinds of houses shall be determined and published regularly. The specific measures shall be formulated by the State Council.
Article 34 The State practices a real estate price appraisal system.
The evaluation of real estate price should follow the principles of justice, fairness and openness, and be based on the benchmark land price, the calibrated land price and the replacement price of various houses with reference to the local market price in accordance with the technical standards and evaluation procedures stipulated by the state.
Article 35 The State implements the system of declaring the transaction price of real estate.
When transferring real estate, the owner of real estate shall truthfully declare the transaction price to the department specified by the local people’s government at or above the county level, and shall not conceal or make false declaration.
Article 36 When transferring or mortgaging real estate, the parties concerned shall register the ownership in accordance with the provisions of Chapter V of this Law.
Section 2 Transfer of Real Estate
Article 37 The transfer of real estate refers to the act that the owner of real estate transfers his real estate to others through sale, gift or other legal means.
Article 38 The following real estates may not be transferred:
(a) the land use right is obtained by means of transfer, which does not meet the conditions stipulated in Article 39 of this Law;
(two) the judicial organs and administrative organs have ruled or decided to seal up or restrict the real estate rights in other forms according to law;
(three) to recover the land use right according to law;
(four) a total of real estate, without the written consent of other co-owners;
(five) the ownership is controversial;
(six) failing to register and obtain the ownership certificate according to law;
(seven) other circumstances in which the transfer is prohibited by laws and administrative regulations.
Thirty-ninth to obtain land use rights by way of transfer, the transfer of real estate, shall meet the following conditions:
(a) according to the transfer contract, all the land use right transfer fees have been paid, and the land use right certificate has been obtained;
(two) in accordance with the transfer contract agreed to invest in development, which belongs to housing construction projects, more than 25% of the total investment in development, which belongs to the development of land in pieces, forming industrial land or other construction land conditions.
If the house has been built when the real estate is transferred, it shall also hold the house ownership certificate.
Fortieth, if the land use right is obtained by allocation, the transfer of real estate shall be reported to the people’s government with the right of approval for examination and approval in accordance with the provisions of the State Council. If the people’s government with the approval authority approves the transfer, the transferee shall go through the formalities for transferring the land use right and pay the transfer fee for the land use right in accordance with the relevant provisions of the state.
If the land use right is obtained by means of allocation, and the people’s government with the right of approval decides not to go through the formalities of transferring the land use right when the real estate is transferred for approval, the transferor shall turn over the land proceeds from the transfer of real estate to the state or make other treatments in accordance with the provisions of the State Council.
Forty-first real estate transfer, a written transfer contract shall be signed, and the contract shall specify the way to obtain the land use right.
Forty-second when the real estate is transferred, the rights and obligations specified in the land use right transfer contract will be transferred accordingly.
Article 43 If the land use right is obtained by means of transfer, after the transfer of real estate, the service life of the land use right shall be the remaining service life after deducting the service life agreed in the original land use right transfer contract from the service life of the original land user.
Article 44 If the land use right is obtained by transfer, and the transferee changes the land use agreed in the original land use right transfer contract after the transfer of real estate, it must obtain the consent of the original transferor and the competent department of urban planning administration of the people’s government of the city or county, sign an agreement on the change of the land use right transfer contract or re-sign the land use right transfer contract, and adjust the land use right transfer fee accordingly.
Article 45 The pre-sale of commercial housing shall meet the following conditions:
(a) has paid all the land use right transfer fees and obtained the land use right certificate;
(2) Holding a construction project planning permit;
(three) according to the pre-sale of commercial housing, the investment in development and construction has reached more than 25% of the total investment in engineering construction, and the construction progress and completion delivery date have been determined;
(four) to handle the pre-sale registration with the real estate management department of the people’s government at or above the county level, and obtain the pre-sale permit certificate of commercial housing.
The pre-sale of commercial housing shall, in accordance with the relevant provisions of the state, report the pre-sale contract to the real estate management department and land management department of the people’s government at or above the county level for registration.
The proceeds from the pre-sale of commercial housing must be used for related engineering construction.
Forty-sixth commercial housing pre-sale, commercial housing pre-buyers will buy unfinished pre-sale commercial housing re-transfer, by the the State Council.
Section 3 Real Estate Mortgage
Article 47 The mortgage of real estate refers to the act that the mortgagor provides the mortgagee with the debt performance guarantee with his legal real estate without transferring possession. When the debtor fails to perform his debts, the mortgagee has the right to be paid in priority with the proceeds from the auction of mortgaged real estate according to law.
Article 48 A legally acquired house ownership together with the land use right within the occupied area of the house may be mortgaged.
The right to use the land obtained by means of transfer may be mortgaged.
Forty-ninth real estate mortgage shall be handled with the certificate of land use right and the certificate of house ownership.
Fiftieth real estate mortgage, the mortgagor and the mortgagee shall sign a written mortgage contract.
Article 51 The right to use the land for mortgage of real estate is obtained by allocation. After auctioning the real estate according to law, the mortgagee shall be paid the amount equivalent to the payable land use right transfer fee from the auction price.
Fifty-second after the signing of the real estate mortgage contract, the new houses on the land do not belong to the mortgaged property. When the mortgaged real estate needs to be auctioned, the newly-added houses on the land can be auctioned together with the mortgaged property according to law, but the mortgagee has no right to be compensated in priority for the income from the auction of newly-added houses.
Section 4 Housing Lease
Article 53 Lease of a house refers to the act that the owner of the house, as the lessor, rents his house to the lessee for use, and the lessee pays the rent to the lessor.
Article 54 For house leasing, the lessor and the lessee shall sign a written lease contract, stipulating the lease term, lease purpose, lease price, repair responsibility, and other rights and obligations of both parties, and register with the real estate management department for the record.
Article 55 The lease of residential houses shall be subject to the lease policy stipulated by the state and the people’s government of the city where the houses are located. Rental housing engaged in production and business activities, the rental and other lease terms agreed by both parties.
Article 56 For the purpose of making profits, if the house owner rents out the house built on the state-owned land that has obtained the right to use by allocation, he shall turn over the land income contained in the rent to the state. The specific measures shall be formulated by the State Council.
Section 5 Intermediary service institutions
Fifty-seventh real estate intermediary service agencies include real estate consulting agencies, real estate price assessment agencies, real estate brokerage agencies and so on.
Article 58 A real estate intermediary service institution shall meet the following conditions:
(1) Having its own name and organization;
(2) Having a fixed service place;
(3) Having necessary property and funds;
(4) Having a sufficient number of professionals;
(5) Other conditions stipulated by laws and administrative regulations.
The establishment of a real estate intermediary service institution shall apply to the administrative department for industry and commerce for registration of establishment and obtain a business license before it can start business.
Article 59 The State practices the qualification certification system for real estate appraisers.
Chapter V Registration Management of Real Estate Ownership
Article 60 The state practices a system of registration and certification of land use rights and house ownership.
Article 61 To obtain the land use right by transfer or allocation, an application for registration shall be made to the land administration department of the local people’s government at or above the county level. After verification by the land administration department of the local people’s government at or above the county level, the land use right certificate shall be issued by the people’s government at the same level.
If a house is built on the land for real estate development obtained according to law, it shall apply for registration to the real estate management department of the local people’s government at or above the county level with the certificate of land use right, and the real estate management department of the local people’s government at or above the county level shall verify and issue the certificate of ownership of the house.
When real estate is transferred or changed, it shall apply to the real estate management department of the local people’s government at or above the county level for registration of change of real estate, and apply to the land management department of the people’s government at the same level for registration of change of land use right on the basis of the changed house ownership certificate. After verification by the land management department of the people’s government at the same level, the people’s government at the same level shall replace or change the land use right certificate.
If it is otherwise provided by law, it shall be handled in accordance with the provisions of relevant laws.
Article 62 When a real estate is mortgaged, it shall be registered with the department specified by the local people’s government at or above the county level.
Where the land use right and house ownership are obtained due to the disposal of mortgaged real estate, the transfer registration shall be handled in accordance with the provisions of this chapter.
Article 63 Where it is determined by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government that the local people’s governments at or above the county level are in charge of real estate management and land management by one department, they may make and issue a unified real estate title certificate, and in accordance with the provisions of Article 61 of this Law, the confirmation and change of the ownership of the house and the land use right within the occupied area of the house shall be recorded in the real estate title certificate respectively.
Chapter VI Legal Liability
Article 64 Whoever, in violation of the provisions of Articles 11 and 12 of this Law, approves the assignment or assigns the land use right for real estate development without authorization shall be given administrative sanctions by the higher authorities or the unit to which he belongs.
Article 65 Anyone who, in violation of the provisions of Article 30 of this Law, engages in real estate development business without obtaining a business license shall be ordered by the administrative department for industry and commerce of the people’s government at or above the county level to stop real estate development business, his illegal income shall be confiscated and he may also be fined.
Article 66 Where the right to use land is transferred in violation of the provisions of the first paragraph of Article 39 of this Law, the illegal income shall be confiscated by the land administration department of the people’s government at or above the county level, and a fine may also be imposed.
Article 67 Where a real estate is transferred in violation of the provisions of the first paragraph of Article 40 of this Law, the land administration department of the people’s government at or above the county level shall order it to pay the leasing fee for the right to use the land, confiscate its illegal income and may concurrently impose a fine.
Article 68 Whoever presales a commercial house in violation of the provisions of the first paragraph of Article 45 of this Law shall be ordered by the real estate management department of the people’s government at or above the county level to stop the pre-sale activities, confiscate the illegal income and may also be fined.
Article 69 Anyone who, in violation of the provisions of Article 58 of this Law, engages in real estate intermediary services without obtaining a business license shall be ordered by the administrative department for industry and commerce of the people’s government at or above the county level to stop the real estate intermediary services, his illegal income shall be confiscated and he may also be fined.
Article 70 If a real estate development enterprise is charged without the basis of laws and regulations, the higher authorities shall order it to return the money collected; If the circumstances are serious, the person directly responsible shall be given administrative sanctions by the higher authorities or the unit to which he belongs.
Seventy-first real estate management department, land management department staff dereliction of duty, abuse of power, which constitutes a crime, shall be investigated for criminal responsibility according to law; If it does not constitute a crime, it shall be given administrative sanctions.
If the staff of the real estate management department and the land management department take advantage of their positions to ask for other people’s property, or illegally accept other people’s property to seek benefits for others, which constitutes a crime, criminal responsibility shall be investigated according to law; If it does not constitute a crime, it shall be given administrative sanctions.
Chapter VII Supplementary Provisions
Article 72 Obtaining the land use right of real estate development land, engaging in real estate development and trading activities and implementing real estate management within the state-owned land outside the urban planning area shall be implemented with reference to this Law.
Article 73 This Law shall come into force as of January 1, 1995.