Laws of the People's Republic of China

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

   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.

Articel 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 therefor 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.

   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.