Laws of the People's Republic of China

   Article 1. With a view to implementing "PRC Regulations on Leasing and Transferring of the Right to Use State-owned Urban and Rural Land" (hereinafter referred to as "Regulations") and strengthening the administration of allocated land use right, these rules are formulated.

   Article 2. Allocated land use right denotes the right to use State-owned land procured by land users through means other than land-use right transference.

   Article 3. These rules are applicable to the transferring, leasing and mortgaging of the right to use allocated land (hereinafter referred to as land use right).

   Article 4. The land administrations of the people's governments above the county level shall control and supervise in accordance with law the transferring, leasing and mortgaging of land use right.

   Article 5. Land users who have not got approval from land administrations of municipal or county people's governments and fail to go through procedures for the leasing of land use right and pay lease fees shall not transfer, lease or mortgage land use right.

   Article 6. Land users conforming to the following conditions may transfer, lease and mortgage land use right upon approval by land administrations of municipal or county people's governments:

a. They are corporations, enterprises, other economic entities and individuals;

b. Bearer of State-owned land use right certificate;

c. Bearer of legal documents of premises and other attached structures and properties on land; and

d. Those who sign land use right leasing contract in accordance with the "Regulations" and these rules and pay lease fees to municipal or county people's governments or turn over benefits from the transfer, leasing or mortgaging of rights in lieu of lease fees.

   Article 7. The transfer of land use right denotes the transfer to others of land use right or the right along with the premises and other attached structures and properties on the land in question by land users.

The original owner of the land use right is the transferor and the party that receives the land use right is the transferee.

   Article 8. Ways of land use right transfer cover sales, exchange, donations, etc.

Sale means that the transferor trades land use right for given benefits.

Exchange means the exchange of land use rights among land users.

Donation means that the transferor transfers land use right gratis to the transferee.

   Article 9. Leasing of land use right means that land users lease land use right or the right along with the premises and other attached structures and properties on the land in question to others for rents.

The original owner of land use right is the lessor and the party that rents the right is the lessee.

   Article 10. Mortgaging of land use right means that land users mortgage mortgageable land use rights as a guarantee for clearance of debts.

The original owner of the land use right is the mortgagor and the mortgage holder is the mortgagee.

   Article 11. In transferring and mortgaging land use right, ownership of the premises and attached structures and properties on the land in question is correspondingly transferred and mortgaged; in transferring and mortgaging ownership of the premises and attached structures and properties, the land use right covered by their use is correspondingly transferred and mortgaged. The transfer of premises and other attached structures as movable estate is an exception.

In leasing land use right, the use right of the premises and attached structures on land is correspondingly leased; in leasing the use right of the premises and attached structures, the land use right covered by their use is correspondingly leased.

   Article 12. Land users who transfer, lease or mortgage land use right must bear State-owned land use certificate and legal documents of the premises and attached structures and properties and apply in written form to land administrations of local municipal or county people's governments.

   Article 13. Land administrations of municipal or county people's governments must give a reply in 15 days as of the date of receipt of written applications for transferring, leasing or mortgaging land use right.

   Article 14. Land administrations of municipal or county people's governments, through negotiations, sign land use right transfer contract with the applicant.

   Article 15. Both parties involved in transfer, leasing or mortgaging of land use right shall, in accordance with relevant laws, decrees and the land use right leasing contract, sign a contract on transfer, leasing or mortgaging of land use right.

   Article 16. Land users shall, within 60 days after the signing of land use right leasing contracts, pay lease fees to local municipal or county people's governments and have the land use right leasing registered at the land administrations of the municipal or county people's governments.

   Article 17. Both parties shall, within 15 days after the registration of a land use right lease, go to land administrations of municipal or county people's governments to have the transfer, leasing or mortgaging of land use right registered.

To get them registered, it is necessary to present the following documents and materials:

a. Certificate of State-owned land use;

b. Land use right leasing contract;

c. Contract on transfer, leasing and mortgaging of land use right; and

d. Other documents and materials deemed necessary by the land administrations of the municipal or county people's governments.

   Article 18. When land use right is transferred, the rights and obligations recorded in the land use right leasing contract and the registration documents are correspondingly transferred.

   Article 19. In leasing and mortgaging land use right, the lessor or mortgagor must continue to implement the land use right leasing contract.

   Article 20. After land use right is transferred, if the lessee has the need to change the contents as defined in the land use right leasing contract, must get consent from the land administrations of the local municipal or county people's governments and, in accordance with the approving authority, the approval of the land administrations and urban planning departments and, in accordance with "Regulations" and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration formalities.

   Article 21. After land use right is leased, the lessee must not add permanent premises and structures. If it is necessary to build interim premises and structures, the lessee must get consent from the lessor and go through relevant approval formalities in accordance with relevant laws and regulations.

After land use right is leased, if the lessee has the need to change the content as defined in the land use right leasing contract, the lessee must get consent from the lessor and approval from the land administrations and urban planning departments in accordance with "Regulations" and these rules, re-sign land use right leasing contract, re-adjust lease fees and go through land registration formalities.

   Article 22. After the termination of the land use right leasing contract, the lessor shall, within 15 days as of the date of termination of the contract, go to the original registration office to cancel the land use right leasing registration.

   Article 23. After the termination of the land use right mortgaging contract, the mortgagor shall, within 15 days as of the date of termination of the contract, go to the original registration office to cancel the land use right mortgaging registration.

   Article 24. If the mortgagor fails to honor his debt due, or the mortgagor is disbanded or goes bankrupt during the effective period of the mortgaging contract, the mortgagee has the right, in accordance with State laws and decrees and the mortgaging contract, to dispose of the mortgaged properties.

Land users who procure land use right through disposing of mortgaged properties must, within 15 days of the date of procurement of the right, go through formalities to change land registration at the land administrations of the local municipal or county people's governments.

   Article 25. When land users who are transferring, leasing or mortgaging the land use right are going through procedures to lease land use right, the land use right leasing period must be clearly determined through negotiations between the land administrations of the local municipal or county people's governments and land users and recorded in the land use right leasing contract and must not exceed the maximum length of period as defined in the "Regulations".

   Article 26. Land use right leasing fees are charged in accordance with different means of transferring, leasing or mortgaging to a given proportion of the listed land price, with the lowest no less than 40% of the listed land price. The listed land price is determined by the land administrations of the local municipal or county people's governments by referring to the basic land price, the term of transferring, leasing or mortgaging the land use right and land conditions.

   Article 27. Land use right fees are collected and managed in accordance with relevant State regulations by land administrations of local municipal or county people's governments on behalf of the government.

   Article 28. When the lease term of the land use right is due, land users must, with 15 days as of the date of maturity of the term, bear the State land use certificate and land use right leasing contract and go to the original registration office to cancel the leasing registration.

   Article 29. After the lease term of the land use right is due, if land users transfer, lease or mortgage the land use right again, they shall, in accordance with these rules, re-sign land use right leasing contract, pay lease fees and go through formalities to change land registration.

   Article 30. During the period of land use right leasing, the State, under special circumstances and in accordance with the public interest, may recover through legal procedures the land use right and pay corresponding compensations according to the length of use and the degree of development and utilization by land users.

   Article 31. If land users fail to pay all lease fees within the period as prescribed in the land use right leasing contract, the lessor has the right to cancel the contract and may ask the violator of the contract to compensate.

   Article 32. If a land user fails to go through formalities for land registration in transferring, leasing and mortgaging land use right, his deed shall be invalid and unprotected by law.

   Article 33. Units and individuals who transfer, lease or mortgage land use right without approval shall be dealt with by land administrations of local municipal or county people's governments according to Article 46 of the "Regulations".

   Article 34. If an involved party does not agree with administrative punitive decisions by land administrations, it may bring a suit to the local people's court in accordance with "PRC Administrative Procedural Law".

   Article 35. Land administrations of people's governments above the county level should strengthen supervision over and examination of the transferring, leasing and mortgaging of land use right and handle in time violations of law.

   Article 36. When land administrations are checking or examining the transferring, leasing or mortgaging of land use right, the units or individuals under examination shall cooperate, report factually and present relevant documents and materials and must not obstruct the execution of such examinations.

   Article 37. In supervision and examination, land administrations may take the following measures:

a. To check or copy documents or materials;

b. To ask the units or individuals under supervision or examination to present or send documents and materials and other information relating to supervision and examination; and

c. To order the units or individuals to stop land-related acts underway that violate the law.

   Article 38. The expenses of land administrations in handling leasing of land use right are covered according to relevant State regulations.

   Article 39. Organizations other than economic entities engaged in transferring leasing or mortgaging land use right are handled in the light of these rules.

   Article 40. Collaboration with others in building houses and running joint ventures with land use right as the condition is deemed as transfer of land use right and handled according to these rules.

   Article 41. Land administrations of municipal or county people's governments should organize task forces to check up on the unauthorized acts of transferring, leasing or mortgaging land use right executed in the period after the "Regulations" was put into force and before these rules come into effect and have them go through formalities for leasing as a complementary measure after being punished according to "Regulations".

   Article 42. The right to interpret these rules rests with the State Land Administration.

   Article 43. These rules come into force as of the date of promulgation.