Administrative Ordinance on Development and Management of Urban Real Estate 1998
Administrative Ordinance on Development and Management of Urban Real
Estate is herein promulgated, which shall go into effect upon the date
of promulgation.
CONTENTS
CHAPTER ONE GENERAL PROVISIONS
CHAPTER TWO ENTERPRISES FOR THE DEVELOPMENT OF REAL ESTATE
CHAPTER THREE REAL ESTATE DEVELOPMENT COSNTRUCTION
CHAPTER FOUR MANAGEMENT OF REAL ESTATE
CHAPTER FIVE LEGAL LIABILITIES
CHAPTER SIX MISCELLANEOUS PROVISIONS
CHAPTER ONE GENERAL PROVISIONS
Article 1 In order to standardize acts of development and management of
urban real estate, to strengthen the supervision and administration of
development and management of urban real estate, and to promote and
protect the healthy development of the business of real estate, the
present Ordinace is formulated in accordance with relevant provisions of
The Law of the People's Republic of China on Urban Real Estate
Administration.
Article 2 Development and management of real estate, as referred to in
the present Ordinance, refer to acts of the construction of
infrastructure and the construction of houses on state-owned land within
urban planning areas and the transfer of projects of development or the
sales and lease of commercial housing by enterprises for development of
real estate.
Article 3 Development and management of real estate shall, in accordance
with the principle of the unification of economic benefits, social
benefits and environmental benefits, plan comprehensively, layout
reasonably, develope integratedly and construct concertedly.
Article 4 The construction administrative organ under the State Council
shall be responsible for the supervision and administration of acts of
development and management of real estate in the whole country.
Organs of local people's governments at or above the county level
responsible for administration of development and management of real
estate shall be responsible for acts of development and management of
real estate within their repective administrative regions.
In accordance with the provisions of laws and administrative
regulations, organs of people's governments at or above the county level
responsible for land administration shall be responsible for the
administration of land concerning development and management of real
estate.
CHAPTER TWO ENTERPRISES FOR THE DEVELOPMENT OF REAL ESTATE
Article 5 Besides complying with the requirements of establishment of
enterprises stipulated in relevant laws and administrative regulations,
to establish enterprises for the development of real estate, the
following requirements shall also be met:
(1) have registered capital of 1,000,000 yuan or more;
(2)have 4 or more full-time technical personnel in the fields of real
estate and construction engineering, who have obtained certificate of
qualifications, and 2 full-time accounting personnel with certificate of
qualifications.
In accordance with local situations, people's governments of provinces,
autonomous regions and municipalities directly under the state council
may make requirements higher than the previous paragraph for the
establishment of enterprises for development of real estate concerning
registered capital and the qualifications of professional technical
personnel.
Article 6 When investing to establish real estate development
enterprises, a foreign merchant shall, besides complying with the
provisions of Article 5 of the present Ordinance, complete the process
of examination and approval in accordance with the provisions of laws
and administrative regulations concerning foreign-invested enterprises.
Article 7 The establishment of real estate development enterprises shall
apply to be registered with administrative organs for commerce and
industry of people's governments at or above the county level. For
applications that meet the the requirements of Article 5 of the present
Ordinance, administrative organs for industry and commerce shall
register within 30 days after receiving the application; for those that
don't meet the requirements and so shall not be registered, the reasons
therefor shall be explained.
When examining application for registration of the establishment of real
estate development enterprises, administrative organs for industry and
commerce shall hear the opinion of the administrative departments
responsible for real estate development at the same level.
Article 8 Within 30 days after drawing management certificate,
enterprises for real estate development shall put on record with the
following documents with administrative organs reponsible for real
estate development of the region of the administrative organ of
registration:
(1) a copy of the management certificate;
(2) the charter of the enterprise;
(3) certificate for verification of capital;
(4) ID of the legal representative of the enterprise;
(5) cerficate of qualifications and contract of employment of
professional technical personnel.
Article 9 In accordance with the assets, professional technical
personnel and achievements in development and management of real estate
development enterprises, administrative organs responsible for real
estate development shall check and ratify the level of qualifications of
the enterprise of real estate development that has been put on record.
Enterprises of real estate development shall receive projects of real
estate development in accordance with the level of qualifications as
ratified. The detailed measures shall be formulated by construction
administration organ under the State Council.
CHAPTER THREE REAL ESTATE DEVELOPMENT COSNTRUCTION
Article 10 Real estate development projects shall be ascertained in
accordance with the requirements of the overall plan for land use,
annual plan for land use for construction and urban plan, annual plan of
real estate development; those that shall be approved by administrative
organs for planning in accordance with relevant state regulations shall
apply for approval to administrative organs for planning and shall be
consolidated into annual assets investments plan.
Article 11 The ascertainment of real estate development projects shall,
in accordance with the principle of integratition of the reconstruction
of the old districts and the construction of new districts, focus on the
development of the areas where the infrastructure is weak, the
communication is congested, the environmental pollution is severe or the
houses that are dangerous and old are concentrated; the municipal
entironment shall be protected and improved, and the historical and
cultural heritage shall be protected.
Articel 12 The land for real estate development shall be obtained
through remising; however, this shall not apply when it can be obtained
through transfer in accordance with the provisions of the laws and the
regulations of the State Council.
Before the right to use land is remised or transferred, administrative
organs responsible for urban planning and administrative organs
responsible for real estate development of local people's governments at
or above the county level shall give written opinion on the following
matters, which shall be the ground for remising or transferring the
right of using land:
(1) the essence, scale and duration of development of the project of
real estate development;
(2) the engineering requirements of urban planning;
(3) the construction requirements concerning infrastructure and public
utilities;
(4) the defination of property rights after the infrastructure is
constructed;
(5) the requirements concerning the compensation and aftercare in
relocation of the project.
Article 13 The system of capital cash shall be set up in real estate
development; the ratio of capital cash to total investment of the
project shall not be lower than 20%.
Article 14 The development and construction of real estate development
projects shall have overall arrangement in relevant infrastructure,
which shall be carried out according to the principle of underground
first, upground second.
Article 15 Enterprises of real estate development shall carry out the
development and construction of the project in accordance with the use
and durations of beginning work and construction as stipulated in the
contract for remising of the right to use land. When the work has not
been started after one year since the duration of construction has
elapsed, charge for idle land which is equivalent to less than 20% of
the price for remising the right to use land may be collected; when the
work has not been started after two years have elapsed, the right to use
land can be taken back without consideration. However, the previous
stipulations shall not apply when the delay in beginning work is caused
by force majesture or acts of government and relevant departments under
the government or the indispensible preliminary work before starting
work.
Article 16 The real estate projects developed and constructed by
enterprises for real estate development shall comply with the provisions
of relevant laws and regulations and project quality, security standards
and technical regulations concerning the reconnaissance, design, and
construction and the provisions of the contract.
Real estate development enterprises shall be responsible for the quality
of the real estate development projects developed and constructed by
them.
Units of reconnaissance, design, construction and supervision shall bear
corresponding responsibilities in accordance with the provisions of
relevant laws, regulations and the contract.
Article 17 Real estate development projects shall not be delivered for
use before they are completed and checked and accepted as qualified.
After real estate development projects are completed, real estate
development enterprises shall apply for check and acceptance after
completion with administrative organs responsible for real estate
development of people's governments at or above the county level of the
region where the project is located. Within 30 days after receiving the
application for check and acceptance after completion, the
administrative organs for real estate development shall check and accept
together with relevant departments or units for project quality
supervision, planninng, fire prevention, people's defence, etc.
Article 18 On completion of group housing real estate projects such as
housing districts, they shall be checked and accepted in accordance with
the provision in Articel 17 of the present Ordinance and the following
requirements:
(1) the circumstances of the implementation of the designing
requirements of urban planning;
(2) the circumstances of the construction of necessary infrastructure
and public utilities as required by urban planning;
(3) the circumstances of the check and acceptance of construction
quality of separate projects;
(4) the circumstances of the implementation of the plan of relocation;
(5) the circumstances of the implementation of real estate
administration.
Group housing real estate development projects such as housing
districts, which are developed in installments may be checked and
accepted in installments.
Article 19 Real estate development enterprises shall register in the
pamphlet of real estate development projects the major affairs in the
course of the construction of the real estate development project; they
shall also be regularly put on record with administrative organs
responsible for real estate development.
CHAPTER FOUR MANAGEMENT OF REAL ESTATE
Article 20 The transfer of real estate development projects shall be in
accordance with the requirements of Article 38 and Article 39 of Law of
the People's Republic of China on Urban Real Estate.
Article 21 When transferring real estate development projects, the
transferor and the transferee shall, within 30 days after the completion
of the formalities of the registration of the transfer of the right to
the use of land, put on record with administrative organs responsible
for real estate development with the contract for the transfer of real
estate development project.
Article 22 When real estate development enterprises transfer real estate
development projects and the relocation and compensation have not been
completed, the relevant rights and obligations in the original contract
for relocation and compensation shall be transferred to the transferee
therewith. The transferor shall give written notice to the persons being
relocated.
Article 23 When selling commercial housing in advance, real estate
development enterprises shall meet the following requirements:
(1) have paid all the remuneration for assignment of the right to the
use of land and obtained certificate of the the right to the use of
land;
(2) have certificate of construction project planning and certificate of
construction;
(3) calculated in accordance with the commercial housing provided for
advance sale, the capital that has already been invested has attained
25% or more of total investment, and the progress of construction and
the date for completion and delivery have been ascertained;
(4) the registration for advance sale has been completed and the
certificate of permission of advance sale of commercial housing has been
obtained.
Article 24 When applying for registration of advance sale of commercial
housing, enterprises of real estate development shall submit the
following documents:
(1) the certifying materials as stipulated in Sections (1) to (3) of
Article 23 of this Ordinance;
(2) management certificate and certificate of the level of
qualifications;
(3) contract of construction;
(4) ichnograph for separate stories of the commercial housing for
advance sale;
(5) plan for advance sale of commercial housing.
Article 25 Administrative organs responsible for real estate development
shall, within 10 days after receiving application for advance sale of
commercial housing, make reply of approval or no approval of the advance
sale. For those approved, certificate of permission of advance sale of
commercial housing shall be issued; for those not approved, the reasons
therefore shall be explained.
Article 26 Real estate development enterprises shall not engage in false
advertising activities; the serial number of the certifying documents
of permission of advance sale of commercial housing shall be stated in
the advertisements.
Article 27 When selling commercial housing in advance, enterprises for
real estate development shall show to persons purchasing in advance the
certificate of permission of advance sales of commercial housing.
Enterprises for real estate development shall, within 30 days after the
signing of contracts for advance sales of commercial housing, put on
record with administrative organs responsible for real estate
development and administrative organs responsible for the administration
of land of the people's governments at or above the county level where
the commercial housing is located.
Article 28 When selling in advance commercial housing, the parties shall
sign a written contract, which shall stipulate the area of construction
and the area for use, the price, the date of delivery, quality
requirements, means of real estate administration and their repective
liabilities for the breach of the contract.
Articel 29 When assigning intermediary institutions to sell commercial
housing, enterprises for real estate development shall issue to
intermediary institutions letter of authorization. When selling
commercial housing, intermediary institutions shall show to buyers of
commercial housing relevant certifying documents of commercial housing
and letter of authorization to sell commercial housing.
Article 30 The prices of the transfer of real estate development
projects and of the sales of commercial housing shall be negotiated and
agreed upon by the parties; however, the guiding price of government or
the ordered price of the goverment shall be carried out in the case of
the prices of residence housing which enjoys the preferential treatment
from the state.
Article 31 When delivering commercial housing for use, enterprises for
real estate planning shall issue letter of garuatee of quality and
user's manual to the buyer.
Letter of garuatee of quality shall list the quality level as checked
and examined by unit of supervision of the quality of the project, scope
of garuanteed repairing, duration of garuanteed repairing and the unit
that shall be responsible for garuanteed repairing. Enterprises for real
estate development shall bear the obligation of garuanteed repairing in
accordance with the provisions of letter of garuantee of quality of
housing.
If, within the period of garuanteed repairing, the original utility of
the housing is affected and damages are incurred upon the buyer because
of the repairing of the housing by enterprises for real estate
development, the enterprises shall bear liabilities in accordance with
laws.
Article 32 After the commercial housing is delivered for use and the
buyer believes that the quality of the main structure doesn't meet
requirements, the buyer can apply for re-examination to the unit of
quality supervision of the project. If the quality of the main structure
is confirmed through re-examination not to be in compliance with the
requirements , the buyer has the right to be refunded; if damages are
incurred upon the buyer, enterprises for real estate development shall
bear the liability of compensation according to law.
Article 33 The buyer of commercial housing sold in advance shall, within
90 days after the delivery of commercial housing for use, complete the
formalities for the transfer of the right to the use of land and for the
registration of the property right over the housing; buyer of completed
housing shall, within 90 days after the sales contract is signed,
complete formalities of transfer of the right to the use of land and of
registration of the property right over the housing. Enterprises of real
estate development shall assist buyers of commercial housing in
completing the formalities of the transfer of the right to the use of
land and of registration of the property over the housing, and provide
necessary certifying documents.
CHAPTER FIVE LEGAL LIABILITIES
Article 34 Those who engage in real estate development on themselves
without obtaining management certificate in contravention to the present
Ordinance shall be ordered to stop activities of development and
management by administrative organs of industry and commerce of people's
governments at or above the county level; the illegal profits shall be
confiscated and a fine of 5 times of the illegal profits or less may be
imposed.
Article 35 Those who engage in real estate development without obtaining
certificate of level of qualification or beyond their certificates of
level of qualification in contravention to the provisions of the present
Ordinance shall be ordered to correct within fixed limitations by
administrative organs for industry and commerce of people's governments
at or above the county level; a fine of 50,000 yuan to 100,000 yuan
shall be imposed; if they don't correct within fixed limitations, the
management certificate shall be revoked by administrative organs for
industry and commerce.
Article 36 Those who deliver housing for use before it's checked and
accepted in contravention to the provisions of the present Ordinance
shall be ordered to make up for the formalities of check and acceptance
within fixed limitation by administrative organs responsible for real
estate development of people's governments at or above the county level;
those who do not make up for the formalities of check and acceptance
within the fixed limitation shall be checked and accepted by
administrative organs responsible for real estate development of
people's governments at or above the county level; a fine of no less
than 100,000 but no more than 300,000 yuan shall also be imposed.Those
who don't pass the check shall be disposed of in accordance with Article
37 of the present Ordinance.
Article 37 Those who deliver for use the housing that doesn't pass check
and acceptance in contravention to the provisions of the present
Ordinance shall be ordered to repair within fixed limitation by
administrative organs responsible for real estate development of
people's governments at or above the county level; a fine of under 2% of
the total construction cost of the housing delivered shall be imposed in
addition; for those whose circumstances are severe, management
certificates shall be revoked by administrative organs for industry and
commerce ; for those who caused damages to the buyer, liability of
compensation shall be imposed in accordance with law; for those who
cause serious injury or death or other severe consequences and a crime
is constituted, criminal liability shall be investigated.
Article 38 Those who transfer real estate development projects on their
own in contravention to the provisions of the present Ordinance shall be
ordered to stop illegal acts; the illegal profits shall be confiscated;
a fine of 5 times of illegal profits or less may also be imposed in
addition.
Article 39 Those who sell commercial housing in advance on their own in
contravention to the provisions of the present Ordinance shall be
ordered to stop illegal acts ; the illegal profits shall be confiscated;
a fine of 1% of the advance payment or less may also be imposed in
addition.
Article 40 If, in the supervision and administration of real estate
development and management, employees with state organs neglect their
duty, be irregular for favoritism, abuse their powers and has committed
a crime, their criminal liabilities shall be investigated; for those who
has not committed a crime, administrative penalties shall be imposed in
accordance with law.
CHAPTER SIX MISCELLANEOUS PROVISIONS
Article 41 For the development and management of real estate on state
owned land outside urban planning areas , the supervision and
administration of real estate development and management shall be
carried out with reference to the present ordinance.
Article 42 Lands that are owned by collectives within urban planning
areas couldnt be used in real estate development and management before
the land is expropriated by the state in accordance with law.
Article 43 The present Ordinance shall be effective upon the date of
promulgation.
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