Laws of the People's Republic of China

CHAPTER I GENERAL PRINCIPLES

CHAPTER II LEASING OF LAND-USE RIGHTS

CHAPTER III SUBLEASING OF LAND-USE RIGHTS

CHAPTER IV RENTING OF LAND-USE RIGHTS

CHAPTER V MORTGAGE OF LAND-USE RIGHTS

CHAPTER VI TERMINATION OF LAND-USE RIGHTS

CHAPTER VII APPROPRIATION OF LAND-USE RIGHTS

CHAPTER VIII SUPPLEMENTARY ARTICLES

CHAPTER I GENERAL PRINCIPLES

   Article 1. These procedures are formulated to help implement the Provisional Regulations of the People's Republic of China on the Leasing and Subleasing of Urban State-owned Land (hereinafter referred to as Regulations) according to the actual conditions of the city.

   Article 2. The Regulations and these Procedures are effective with respect to the leasing and subleasing of urban State-owned land within the administrative areas of the city.

Urban State-owned land referred to in these Procedures denotes land owned by the whole people (hereinafter referred to as land) in the city proper, its suburbs, cities and townships in the outer suburbs (townships with an administrative status) and industrial and mining areas.

   Article 3. All enterprises, other organizations and individuals in and out of the People's Republic of China, except otherwise regulated, can obtain land-use rights and engage in land development, utilization and management in accordance with stipulations of the Regulations and these Procedures.

   Article 4. Land-use right obtained by a user by law can be subleased, rented out or mortgaged or to be used for other economic activities within the term of the land lease, and legitimate rights and interests of the user are accordingly protected by law.

   Article 5. The development, utilization and management of the land by the user should be carried out in observation of laws, regulations and rules and not in violation of public interests.

   Article 6. The City Land Administration Bureau exercises by law the supervision and inspection of the leasing, subleasing, renting out, mortgage and termination of land-use rights throughout the city. The supervision and inspection of the leasing, subleasing, renting out, mortgage and termination of land-use rights to land for city and township construction already under development and put to use will be carried out by the city Real Estate Administration Bureau in accordance with the city's unified stipulations and requirements in land administration,

The City Land Administration Bureau is in charge of leases of undeveloped land. The City Real Estate Administration Bureau is in charge of work concerning the subleasing, renting out, mortgage and termination of land leases. The City Real Estate Administration Bureau is also in charge of the leasing, subleasing, renting out, mortgage and termination of use of land that has been under development and use for city and township.

CHAPTER II LEASING OF LAND-USE RIGHTS

   Article 7. The locations, areas, usages, terms and other conditions of the tracts of land for lease are to be decided upon by the City Land Administration Bureau and the City Real Estate Administration Bureau in accordance with the stipulations on their respective responsibilities in Article 6 of these Procedures and in conjunction with the city's departments for economic planning, city planning and construction. After their approval by the Municipal People's Government, the lease plans will be carried out respectively by the City Land Administration Bureau and the City Real Estate Administration Bureau.

   Article 8. The lease of land-use rights should be effected by the signing of a land lease contract. The contract is to be signed by the City Land Administration Bureau or the City Real Estate Administration Bureau (hereinafter referred to as the lessor) and the land user on the principle of equality, voluntary participation and non-gratuitousness.

   Article 9. The longest term of a land lease is to be determined in accordance with Article 12 of the Regulations which stipulates different limits of land lease terms for different uses of land.

   Article 10. The leasing of land-use rights will take the form of reaching agreement, public tender or auction.

   Article 11. Procedures for land lease through agreement:

1. The lessor provides the prospective lessee with the materials and documents related to the tract of land for leases.

2. The prospective lessee, having acquired the materials, should, within the prescribed time, submit to the lessor documents concerning land development and construction plans, the lease price and methods of payment.

3. The lessor should give a reply within 30 days of receiving the documents listed in the second paragraph of this article.

4. Having reached agreement through negotiation, the lessor and lessee will sign the lease contract, and the lessee should pay the earnest money.

5. Having paid the earnest money, the lessee will register for land-use rights at the land administration bureau or the real estate administration bureau and receive the land-use certificate.

   Article 12. Procedures for land lease through public tender:

1. The lessor should send to the tenderers invitations for bids and documents and materials related to the lease tender three months before the date set for submitting tenders.

2. The bidder will deposit his sealed tender document in the designated tender box at the prescribed time and place. The tender document should contain information concerning plans for land development and utilization, lease price and methods of payment.

3. The bidder will pay the tender bond for the amount, in the method, at the time and place as prescribed. The tender bond will be fully refunded to the unsuccessful bidder.

4. The lessor, together with departments concerned, will invite experts to form a tender appraisal committee which will take charge of the opening, appraisal and awarding of tenders.

Those tenders are invalid whose bidders are not qualified for bidding, or which do not meet the requirements of the tender document, or which have been sent in later than the deadline for tender submissions.

The tender appraisal committee will examine and evaluate the effective tenders, decide on the winning tender and sign and issue the document for granting the tender. The land administration bureau or the real estate administration bureau will issue to the winner of the tender the certificate of winning the tender.

The city notary office should take part in the whole process of opening, appraising and awarding the tenders and issue a notarial document thereon.

5. The winner of the tender, presenting the certificate of winning the tender, will sign the lease contract with the lessor, and pay the earnest money before the designated date. The tender bond that has been paid will be calculated as part of the earnest money.

6. Having paid the lease price, the tender winner will register for the land-use rights and obtain the land-use certificate at the land administration bureau or the real estate administration bureau.

   Article 13. Procedures for land lease by auction:

1. The lessor should, within three months before the designated date for auction, make public notice concerning the location and area of the plot of land for auction, its planned uses, term of the lease, the date for obtaining related materials and the time and place where the auction will take place.

2. Bidders should, within three days before the opening of the auction, go to the land administration bureau or the real estate administration bureau to get a numbered placard for bidding. The bidding of those using self-made placards is invalid.

3. During an auction, after the auctioneer announcing the base price, the bidder will hold up his placard and give his price. The highest bidder is the winner.

4. The winner of the bid should immediately sign the lease contract with the lessor and pay the earnest money. Failure to pay the earnest money at the time is subject to a fine of less than RMB5, 000 to be administered by the land administration bureau or the real estate administration bureau.

5. After paying the lease price at the price he has given at the auction, the lessee will register for land-use rights and get the land-use certificate at the land administration bureau or the real estate administration bureau.

The city notary office should take part in land lease auctions and issue a notarial document thereon.

   Article 14. The land administration bureau or the real estate administration bureau, in leasing land-use rights through agreement, public tender or auction, should provide the following materials as stipulated in Articles 11, 12 and 13:

1. Location, boundaries, area and land mark map of the land tract.

2. Planned uses of the land and planned limits for architectural volume, density and headroom.

3. Time limit for the completion of construction projects, necessary outlay of construction expenses and the lowest limit for areas of future development.

4. Requirement concerning environmental protection, greening of the environment, sanitation and disease prevention, communications and fire prevention.

5. Conditions of public utility installations and construction plans or requirements for designing.

6. Conditions of ground surface of the tract.

7. The form in which the lease is realized and term of the lease.

8. Method of payment of the lease price and requirements.

9. The lessee's obligations and relevant legal responsibilities.

10. Other necessary materials.

   Article 15. In the case of the lessee failing to pay in full the lease price as stipulated or the lessor failing to offer the land-use rights as stipulated in the contract, the other side has the right to cancel the contract in accordance with stipulations in Articles 14 and 15 of the Regulations and request compensation for breaking the contract.

   Article 16. The land user should develop, utilize and manage the leased land in accordance with stipulations in the contract and city planning requirements.

For cases of failing to develop and utilize the land in the time limit and according to conditions stipulated in the contract, the land administration bureau or the real estate administration bureau will effect corrections by laws and can issue a warning, impose a fine of more than RMB5,000 and less than RMB100,000 or even take back the land-use right without compensation according to circumstances.

   Article 17. The lessee who finds it necessary to change the uses of land stipulated in the lease contract should, with approval from the land administration bureau or the real estate administration bureau, renew the contract in accordance with law and adjust the lease price, and perform the register formalities.

CHAPTER III SUBLEASING OF LAND-USE RIGHTS

   Article 18. Subleasing of land-use rights should be effected by signing a sublease contract.

In the case of no investment having been made for the development and utilization of the leased land in the time limit and conditions as stipulated in the lease contract, the rights to use the land is not allowed to be subleased.

   Article 19. When leased land is subleased, the right and obligations defined in the lease contract and the register document are thereby transferred, and the property rights to buildings and other attached installations on the ground are also transferred.

When the lessee transfers the property rights to buildings and other attached installations on the ground, the right to use the land they take up is thereby transferred. But this does not include the transference of buildings and other attached installations on the ground as movable property.

   Article 20. The valid term of the land sublease is as long as the remaining years stipulated in the lease contract after deducting the years the lessor has used.

   Article 21. The sublease of land-use rights and property rights to buildings and other attached installations on the ground should be registered at the real estate administration bureau in order to change the name of the owner. A partial sublease of land-use rights and property rights to buildings and other attached installations on the ground should get the approval of the real estate administration bureau and register for change of name of owner.

   Article 22. After a sublease of the land-use rights, a change in the uses of the land stipulated in the land lease should be handled in accordance with stipulations in Article 17 of these Procedures.

CHAPTER IV RENTING OF LAND-USE RIGHTS

   Article 23. Renting of land-use rights should be effected by signing of a rental contract which shall not contravene laws, regulations, rules and stipulations of the land lease contract.

In the case of the lessor failing to put in investment for the development and utilization of the land in the time limit and conditions as stipulated in the lease contract, the right to use the land is not allowed to be rented out.

   Article 24. After the renting out of his land-use rights, the lessor must continue to honor the land lease contract.

   Article 25. The lessor should register at the real estate administration bureau for his rental of land-use rights and the buildings and other attached installations on the ground.

CHAPTER V MORTGAGE OF LAND-USE RIGHTS

   Article 26. The mortgagor and mortgagee should sign a mortgage contract for the mortgage of land-use rights which should not contravene laws, regulations, rulings and stipulations of the land lease contract.

   Article 27. Buildings and other attached installations on the ground are mortgaged with the mortgage of the land-use rights.

The right to use the land occupied by buildings and other attached installations is mortgaged with the mortgage of the buildings and other attached installations.

   Article 28. The mortgage of land-use rights and buildings and other attached installations on the ground and the loss of mortgage because of debt clearance or other reasons should be registered at the real estate administration bureau. The unregistered mortgage is invalid.

Those who acquire land-use rights and property rights to the buildings and other attached installations on the ground as a result of the disposal of a mortgage should register and change the name of the owner at the real estate administration bureau.

CHAPTER VI TERMINATION OF LAND-USE RIGHTS

   Article 29. At the expiry of the land lease, the State will acquire without compensation the land-use rights and the property rights to the buildings and other attached installations on the ground of the land. The lessee should return the land-use certificate to the office of its issue and cancel the registration.

   Article 30. If the lessee requests an extension of the term of the land lease after its termination, he(she) should make the request within six months of its expiry and sign a new contract for it, pay the lease price and register at the land administration bureau or the real estate administration bureau.

CHAPTER VII APPROPRIATION OF LAND-USE RIGHTS

   Article 31. The user of appropriated land can sublease, rent out or mortgage the land-use rights to his appropriated land and the property rights to the buildings and other attached installations on the ground in accordance with the Regulations and these Procedures on condition that the case conforms to stipulations in items 1, 2, and 3 of Article 45 of the Regulations, that it has the approval of the Land Administration Bureau or the Real Estate Administration Bureau and that the land user has signed a land lease contract with the lessor and paid up the lease price retroactively.

   Article 32. For cases of arbitrary sublease, renting out and mortgage of land-use rights to appropriated land, the units and individuals involved will be subject to legal punishments of confiscation of their illegal income by the Real Estate Administration Bureau and a fine of less than RMB100,000 according to circumstances.

CHAPTER VIII SUPPLEMENTARY ARTICLES

   Article 33. In the case of legal inheritance of land-use rights, the inheritor should register at the Land Administration Bureau or the Real Estate Administration Bureau.

   Article 34. The City Land Administration Bureau is responsible for explanation of concrete questions related to implementation of these Procedures and the City Real Estate Administration Bureau is responsible for explanation of concrete administrative questions related to subleasing of land already developed and put to use.

   Article 35. These Procedures will come into force on June 1, 1992.