(Promulgated by Decree No. 55 of the State Council of the People's Republic of China on May 19, 1990 and effective from the date of promulgation)
Contents
Chapter I General Provisions
Chapter II Assignment of the Land-use Right
Chapter III Transfer of the Land-use Right
Chapter IV Lease of the Land-use Right
Chapter V Mortgage of the Land-use Right
Chapter VI Termination of the Land-use Right
Chapter VII Allocated Land-use Right
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article 1
For the purposes of reforming the urban State-owned land-use system, rationally developing, utilizing and engaging in business of the land, strengthening land administration, and promoting urban construction and economic development, this Regulation is formulated.
Article 2
The State shall, in accordance with the principle of separating the land ownership from the land-use right, implement a system of assignment and transfer of the urban State-owned land-use right, with the exception of underground resources, buried things and public utilities.
"Urban State-owned land" as used in the preceding paragraph means the land which is located within the limits of cities, county towns, organic towns and industrial and mining areas, and is owned by the whole people (hereinafter referred to as "the land").
Article 3
According to this Regulation, all companies, enterprises, other organizations and individuals in and outside the People's Republic of China may acquire the land-use right and engage in land development, utilization and business, except where the law provides otherwise.
Article 4
Within the term of validity, a user having the land-use right in accordance with this Regulation may transfer, lease, or mortgage such right or use it for other economic purposes, with the legitimate rights and interests therefrom being protected by the State's laws.
Article 5
In their activities of land development, utilization and business, land users must comply with the provisions of the State's laws and regulations and may not prejudice the interests of the society and the public.
Article 6
Land administration departments under the people's governments at and above the county level shall according to law supervise and oversee the assignment, transfer, lease, mortgage and termination of the land-use right.
Article 7
The assignment, transfer, lease, mortgage and termination of the land-use right and the buildings and other fixtures on the land shall be registered by the government departments for land administration and real estate administration in accordance with the relevant provisions of laws and the State Council's regulations.
Such registrations shall be made public.
Chapter II Assignment of the Land-use Right
Article 8
Assignment of the land-use right means an act by which the State, in its capacity as the land owner, assigns the land-use right for a certain number of years to a land user, and the latter shall pay the fee for the assignment to the former.
If a land-use right is to assign, an assignment contract shall be required.
Article 9
Municipal and county people's governments shall be responsible for the assignment of the land-use right and shall make the assignment in a planned and systematic manner.
Article 10
Jointly with administration departments for urban planning and construction and real estate, land administration departments under the municipal and county people's governments shall draw up plans concerning the pieces of land, their purposes, the term of validity, and other requirements with respect to the assignment of the land-use right, and put them into practice after such plans are approved in accordance with the extent of authority as provided by the State Council.
Article 11
An assignment contract of the land-use right shall be entered into between the land administration department under the municipal or county people's government (hereinafter referred to as "the assigning party") and the land user in accordance with the principle of equality, voluntariness and consideration.
Article 12
The maximum term of validity shall be --
1. 70 years in the case where the land-use right is assigned for residential purposes;
2. 50 years in the case where the land-use right is assigned for industrial purposes;
3. 50 years in the case where the land-use right is assigned for the purposes of education, science, technology, culture, public health or sports;
4. 40 years in the case where the land-use right is assigned for the purposes of commerce, tourism or recreation; and
5. 50 years in the case where the land-use right is assigned for comprehensive use or other purposes.
Article 13
The land-use right may be assigned by --
1. an agreement;
2. invitation to bid; or
3. auction.
The concrete procedures and measures for assigning the land-use right in the manners under the preceding paragraph shall be set forth by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.
Article 14
A land user shall, within 60 days following the execution of the assignment contract of the land-use right, pay in full the fee for such assignment. If the user fails to do so, the assigning party shall be free to terminate the contract and may claim for liquidated damages.
Article 15
The assigning party shall provide the land-use right as required by the contract. If the assigning party fails to do so, the land user shall be free to terminate the contract and may claim for liquidated damages.
Article 16
A land user shall, after paying the total amount of the fee for the assignment, accomplish the registration as required, obtain the land-use certificate and thus acquire the land-use right.
Article 17
Land users shall engage in land development, utilization and business as required by the assignment contracts of the land-use right and the city planning.
If a land user fails to develop or utilize the land in accordance
with the schedule and requirements specified in the contract, the land administration department under the municipal or county people's government shall correct it and in the light of the seriousness of the case, may impose on the user punishment ranging from warning, fine or recovery of the land-use right without compensation.
Article 18
A land user who intends to change the purpose of land as stipulated in the assignment contract of the land-use right shall be required to obtain the consent of the assigning party and the approval of the land administration department and the urban planning department, and after that, shall enter into a new contract and accomplish the registration therefor with the amount of the assignment fee being readjusted in accordance with the provisions of this Chapter.
Chapter III Transfer of the Land-use Right
Article 19
Transfer of the land-use right means the land user's act of transferring its land-use right, including the sale, exchange, and gift.
If the land has not been developed and utilized in accordance with the schedule and requirements as specified in the contract, the land-use right thereof may not be transferred.
Article 20
If a land-use right is to transfer, a transfer contract shall be required.
Article 21
From the moment that the land-use right is transferred, the rights and obligations specified in the assignment contract of the land-use right and in the registration documents shall be transferred along with.
Article 22
In the case where a land user has acquired the land-use right by means of transfer, the term of validity for such right shall be the remaining period of the term specified in the assignment contract of the land-use right after deduction of the period in which the original land user has already used the land.
Article 23
Where the land-use right is transferred, the title to the buildings and other fixtures thereon are transferred along with.
Article 24
The owner or joint owners of the building and other fixtures on a piece of land shall have the right to use the land underlying the said buildings and fixtures.
Where a land user transfers his title to a building and other fixtures on the land, the right to use the land underlying the said building and fixtures shall be transferred, except where such building and fixtures are transferred as movable property.
Article 25
The transfer of the land-use right and of the title to the buildings and other fixtures on the land shall be registered as required.
In the case where the land-use right and the title to the buildings and other fixtures on it is transferred separately, the approval of the administration departments for land and real estate under the municipal or county people's government shall be obtained, and such transfer shall be registered as required.
Article 26
The municipal and county people's governments shall have the priority of purchase if the transfer price of the land-use right is substantially lower than the market price.
The municipal and county people's governments may take necessary measures if the market price for the transfer of the land-use right rises unreasonably.
Article 27
If a land user intends, after the land-use right is transferred, to change the purpose of the land as specified in the assignment contract of the land-use right, the matter shall be governed by the provisions of Article 18 of this Regulation.
Chapter IV Lease of the Land-use Right
Article 28
Lease of the land-use right means the act by which a land user, as the lessor, leases its land-use right together with the buildings and other fixtures thereon to the lessee for use, and the latter shall pay the former.
If the land has not been invested in the development and utilization in accordance with the schedule and requirements as specified in the assignment contract, the land-use right thereof may not be leased.
Article 29
A lease contract shall be entered into between the lessor and the lessee for the lease of the land-use right.
No lease contract may be in conflict with the State's laws and regulations and the assignment contract of the land-use right.
Article 30
After leasing the land-use right, the lessor must continue to perform the assignment contract of the land-use right.
Article 31
A lessor shall, if leasing the land-use right together with the buildings and other fixtures thereon, be required to accomplish the registration.
Chapter V Mortgage of the Land-use Right
Article 32
The land-use right may be mortgaged.
Article 33
Along with the mortgage of the land-use right, the buildings and other fixtures on the land shall be mortgaged.
Along with the mortgage of a building and other fixtures, the land-use right underlying the said building and fixtures shall be mortgaged.
Article 34
A mortgage contract shall be entered into between the mortgagor and the mortgagee for the mortgage of the land-use right.
No mortgage contract may be in conflict with the State's laws and regulations and the assignment contract of the land-use right.
Article 35
Mortgage of the land-use right and the buildings and other fixtures on the land shall be registered as required.
Article 36
If a mortgagor fails to perform his obligations as scheduled or is declared dissolved or bankrupt within the term of the mortgage contract, the mortgagee shall have the right to dispose of the mortgaged property in accordance with the State's laws and regulations and the mortgage contract.
Any person who acquires the land-use right or the title to the buildings and other fixtures on the land as a result of the disposal of the mortgaged property shall be required to accomplish the registration.
Article 37
The mortgagee shall have the priority of compensation with respect to the receipts resulting from the disposal of the mortgaged property.
Article 38
If a mortgage is eliminated as a result of the liquidation of liabilities or for other reasons, the registration for canceling such mortgage shall be accomplished as required.
Chapter VI Termination of the Land-use Right
Article 39
The land-use right shall terminate for such reasons as the expiration of the term of validity as stipulated in the assignment contract, the withdrawal of the land ahead of the schedule, or loss of the land.
Article 40
When the term of land-use right expires, the right and the title to the buildings and other fixtures on the land shall be acquired by the State without compensation. The land user shall return his land-use certificate and have the registration canceled according to regulations.
Article 41
When the term of land-use right expires, the land user may apply for its renewal. Where such a renewal is approved, a new contract shall be entered into in accordance with the provisions of Chapter II of this Regulation and the land user shall pay the fee for the assignment of the land-use right and renew the registration.
Article 42
Prior to expiry of its term, the State shall not recover the land-use right legally acquired by the land user. Notwithstanding, the State may, under special circumstances and based on the needs of social public interests, recover the land-use right ahead of schedule according to the due process of law and in that case, shall compensate the land user in accordance with the number of years in which the land user has used the land and the actual conditions of land development and utilization.
Chapter VII Allocated Land-use Right
Article 43
The allocated land-use right means the right lawfully acquired by the land user by various means and without any consideration.
Land users mentioned in the preceding paragraph shall pay the land-use tax as required by the provisions of the Interim Regulation of the People's Republic of China Concerning the Tax for the Use of the Land in Urban Areas.
Article 44
The allocated land-use right may not be transferred, leased, or mortgaged, except where Article 45 of this Regulation provides otherwise.
Article 45
Upon approval of the administration departments for land and real estate of the municipal or county people's government, the allocated land-use right and the title to the buildings and other fixtures thereon may be transferred, leased or mortgaged if the following conditions are satisfied:
1. the land user is a company, enterprise, other economic organization, or individual;
2. a State-owned land-use certificate has been obtained;
3. possessing legitimate certificates of property rights to the buildings and other fixtures thereon; and
4. an assignment contract of land-use right has been entered into in accordance with the provisions of Chapter II of this Regulation and the land user makes up for the payment of the assignment fee to the local municipal or county people's government or uses the proceeds from the transfer, lease or mortgage to pay the assignment fee.
Any transfer, lease or mortgage of the allocated land-use right as referred to in the preceding paragraph shall be governed respectively by the provisions of Chapter III, IV or V of this Regulation.
Article 46
Any units or individuals that transfer, lease or mortgage the allocated land-use right without approval shall have their illegal gains therefrom confiscated by the land administration departments under the municipal and county people's governments and shall be fined in accordance with the seriousness of the case.
Article 47
If a land user who has acquired the allocated land-use right without consideration ceases to use the land as a result of moving to another site, dissolution, cancellation, or bankruptcy or other reasons, the municipal or county people's government shall recover the allocated land-use right without compensation and may assign it in accordance with the relevant provisions of this Regulation.
The municipal or county people's government may, based on the needs of urban construction and development and the requirements of urban planning, recover the allocated land-use right without compensation and may assign it in accordance with the relevant provisions of this Regulation.
When the allocated land-use right is recovered without compensation, the municipal or county people's government shall, in the light of the actual situations, give proper compensation for the buildings and other fixtures on the land.
Chapter VIII Supplementary Provisions
Article 48
Land-use rights acquired by individuals pursuant to the provisions of this Regulation may be inherited.
Article 49
Land users shall pay taxes as required by the provisions of the State's laws and regulations on tax.
Article 50
Fees collected by assigning the land-use right according to this Regulation shall be included in the fiscal budget and managed as a special fund, which shall be used mainly for urban construction and land development. The concrete measures for the use and management of the fund shall be separately set forth by the Ministry of Finance.
Article 51
Subject to this Regulation and the local actual conditions, the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall select some cities or towns where conditions are relatively ripe to launch pilot project thereof.
Article 52
With respect to foreign investors engaging in development and business of the tracts of land, the administration of the land-use right shall be governed by the relevant regulations of the State Council.
Article 53
The State Administration for Land shall be responsible for the interpretation of this Regulation; the measures for the implementation thereof shall be formulated by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.
Article 54
This Regulation shall enter into force on the date of promulgation.
