Procedures of Shanghai Municipality on Compensation and Resettlement for Demolition and Relocation of Residential Houses on Land-Plots Clustered With Shaky Sheds and Crude Shacks Designated to be Reconstructed

(Promulgated by the Shanghai Municipal People' s Government on December 8, 1997) Article 1 (Purpose and Basis) The present Procedures are formulated in accordance with "Regulations on the Administration of Demolition and Relocation of Urban Houses" and in the light of the actual conditions of this Municipality, in order to speed up the reconstruction of shaky sheds and crude shacks in the old quarter of this Municipality, promote the disposal of commodity residential houses that have been long left unoccupied, and protect the legitimate rights and interests of the parties involved in the demolition and relocation. Article 2 (Scope of Application) The present Procedures apply to the compensation and resettlement for the demolition and relocation of residential houses on land-plots clustered with shaky sheds and crude shacks designated to be reconstructed, as checked and ratified by the Municipal Construction Commission. Article 3 (Compensation) For demolition and relocation of residential houses, the demolished shall compensate the owner of the residential houses in accordance with the architectural area of the demolished houses and the stipulated standard amount of compensation. Article 4 (Ways of Resettlement) The following ways of resettlement may be used for the demolition of publicly-owned residential houses: 1. Resettlement with publicly-owned residential houses; 2. Resettlement with commodity residential house to be bought by the resident himself/herself whose house is to be demolished, with a sum money equivalent to the value of the publicly owned residential house designated for his/her resettlement (hereinafter referred to as "monetized resettlement" ) For demolition and relocation of privately-owned residential houses, in addition to the ways of resettlement mentioned in the preceding paragraph, resettlement may take the form of exchanging house titles. Article 5 (Standard for Computation of the Floor Area for Resettlement) If resettlement is done with publicly-owned residential house or by exchange of house titles, the party that is to demolish the house shall compute the area for resettlement on the basis of the architectural area of the demolished house with the exception of the following circumstances: 1. the architectural area of the house to be demolished is less than 10 square meters per person, in which case the area for resettlement shall be computed at 10 square meters per person; or 2. the owner of a privately-owned house to be demolished asks to be resettled in a publicly-owned house and the architectural area of the house to be demolished is more than 24 square meters per person, in which case the area for resettlement shall be computed at 24 square meters per person. Article 6 (Standard of Increase in Floor Area for Resettlement in a Different Location) When the party that is to demolish the house resettle the party whose house is demolished in a different location, the area for resettlement shall be increased in accordance with the ratio listed in the following table on the basis of the standard for computation set forth in Article 5 of the present Procedures: Grade of locality of the house demolished Grade of locality of the house for resettlement 1, 2, 3 4 5 6 1, 2, 3 - 20% 40% 80% 4 - - 20% 40% The grades of the locality of the house listed in the preceding paragraph shall be defined separately by the Municipal Housing and Land Administration. Article 7 (Standard of Increase in Area for Resettlement for Single-child) In case the household living in the to- be-demolished house has a single child and holds a single child certificate, the said household shall be entitled to an extra increase in architectural area of 10 square meters in addition to the resettlement done according to the standard for computation set forth in Articles 5 and 6 of the present Procedures. But this does not apply to a single child who is married. Article 8 (Prices for Houses Involved in Titles Exchange) When the owner of a privately-owned house to be demolished exchanges house titles with the party that is to demolish the house, the two parties shall compute the price difference according to the area and quality of the exchanged houses. The price difference shall be paid in one lump sum at the time when the two parties sign an agreement for compensation and resettlement for the demolition and relocation of houses. In case the party that is to demolish the house uses a newly-built house in exchange for the title of the owner to a privately-owned house to be demolished, the price of the newly-built house shall be calculated on the basis of the cost price of the new house. However, if the architectural area of the newly built house exceeds that is required for resettlement, the exceeding architectural area shall be charged at market price. The cost price of the newly-built house for exchange shall be set jointly by the Municipal Construction Commission and the Municipal Price Control Bureau by reference to the cost price for the sale of publicly-owned residential houses. Article 9 (Computation of Monetized Resettlement Money) The amount of money for each resettlement shall be computed according to the following provisions: The amount of money for each resettlement = Average selling price of unoccupied commodity residential house in Grade 4 locality x the architectural area required for resettlement in Grade 4 locality x 80%. The average selling price of unoccupied commodity houses in Grade 4 locality shall be appraised and determined jointly by the Municipal Construction Commission and the Municipal Price Control Bureau; and the construction area required for resettlement in Grade 4 locality shall be computed in accordance with the provisions of Articles 5, 6 and 7 of the present Procedures. Article 10 (Choice of Ways of Resettlement and Restrictions Thereon) The party that is to demolish the houses shall resettle the residents of demolished houses in the way chosen by the latter of their free will, with the exception of the following circumstances: 1. The co-owners of a privately owned residential house that is to be demolished can not reach an agreement on the choice of a way for resettlement, in which case the party that is to demolish the house shall make resettlement by exchange of titles to houses; or 2. The users of a publicly owned residential house that is to be demolished can not reach an agreement on the choice of a way for resettlement, in which case the party that is to demolish the house shall make resettlement by providing publicly owned residential house. Monetized resettlement shall not apply to privately owned houses that have been leased out unless the lessor and the lessee reach an agreement on the distribution of the monetized resettlement money. Article 11 (Signing of Monetized Resettlement Agreement) If a resident whose house is to be demolished, asks for monetized resettlement, he/she shall sign an agreement with the party that is to demolish the house on monetized resettlement for the demolition of the house. The monetized resettlement agreement for demolition of a house shall contain the following main items: 1. Names of the two parties involved in the demolition and relocation; 2. Names of the users of the house to be demolished; 3. Address, grade of locality and architectural area of the house to be demolished; 4. Architectural area of the house in Grade 4 locality to be given for resettlement; 5. Amount of monetized resettlement money; 6. Way and deadline of payment of monetized resettlement money; 7. Deadline for removal of the resident whose house is to be demolished; 8. Liabilities for breach of agreement; 9. Ways of dispute settlement; and 10. Other matters agreed on by the parties involved in the demolition and relocation of the house. Article 12 (Performance of Monetized Resettlement Agreement) After the signing of the monetized resettlement agreement for demolition and relocation of the house, the party that is to demolish the house shall deposit in a designated bank the monetized resettlement money, which shall be divided in due proportion in the name of each of the users of the house to be demolished, within the time limit stipulated in the agreement, and the bank shall issue certificates of deposit for purchase of house separately to each of the users. After the signing of the monetized resettlement agreement for demolition and relocation of the house, the residents of the specific house that is to be demolished shall move out within the time limit stipulated in the agreement. Article 13 (Restrictions on the Use of the Monetized Resettlement Money) The monetized resettlement money shall be used by the users of the house to be demolished for the specific purpose of purchasing any house within this Municipality which has been verified as unoccupied commodity residential house or other commodity residential house. This money shall not be used for any other purposes. The certificate of deposit for purchase of house shall not be cashed; nor shall it be assigned or pledged. Article 14 (Payment for the Purchase of Houses) When the user of a house that is to be demolished purchases a commodity residential house with the monetized resettlement money, he/she shall submit, to the relevant bank, the monetized resettlement agreement for demolition and relocation, the house purchase contract, and the certificate of deposit for the purchase of house. The relevant bank shall pay by transfer account, in accordance with the stipulations of the house purchase contract, the money in the certificate of deposit for purchase of house to the seller of the commodity residential house. Article 15 (Handling of the Difference Between the Purchase Price and the Amount of the Deposit) When the price of a commodity residential house to be purchased by the user of the house that is to be demolished, is higher than the amount in the certificate of deposit for the purchase of house , the user of the house that is to be demolished shall pay the deficit himself/herself. When the price of a commodity residential house to be purchased by the user of the house that is to be demolished is lower than the amount in the deposit certificate for house purchasing , the user of the house that is to be demolished may draw the surplus in cash. Article 16 (Title to the House Purchased) The title to the commodity residential house purchased with the monetized resettlement money shall belong to the purchaser. Article 17 (Handling of Cases in Which No Agreement Can Be Reached on Monetized Resettlement) In case the resident whose house is to be demolished asks for monetized resettlement but fails to reach an agreement with the party that is to demolish the house, he/she shall be resettled with residential house. Article 18 (For Reference in Implementation) Compensation and resettlement for the demolition and relocation of residential houses within the urban area of this Municipality for municipal construction projects or other construction projects may be handled by reference to the present Procedures. Article 19 (Department Responsible for Interpretation of the Present Procedures) The Municipal Housing and Land Administration shall be responsible for the interpretation of the specific application of the Present Procedures. Article 20 (Date of Implementation and Handling of Other Related Matters) The present Procedures shall become effective on January 1, 1998. Matters not covered in the present Procedures shall be dealt with in accordance with the Detailed Implementation Rules of Shanghai Municipality on the Administration of Demolition and Relocation of Urban Houses. In the event of any inconsistency between the present Procedures and the Implementation Rules of Shanghai Municipality on the Administration of Demolition and Relocation of Urban Houses, the present Procedures shall prevail.

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Laws of the Shanghai Province

Procedures of Shanghai Municipality on Compensation and Resettlement for Demolition and Relocation of Residential Houses on Land-Plots Clustered With Shaky Sheds and Crude Shacks Designated to be Reconstructed