Laws of the Shanghai Province

(Promulgated by Decree No. 111 of the Shanghai Municipal People's Government on

October 29, 2001)

Article 1 (Purpose and Basis)

For the purposes of strengthening the administration of demolition and relocation of urban houses, protecting the legitimate rights and interests of the parties involved in the demolition and relocation, and ensuring the smooth progression of the construction projects, these Rules are formulated in accordance with the "Regulations on the Administration of Demolition and Relocation of Urban Houses" and with consideration of the actual situations of this Municipality.

Article 2 (Scope of Application)

These Rules apply to the demolition and relocation of the houses on the state-owned land in this Municipality with the necessity of compensation and resettlement of the owner of the house(s) that is (to be) demolished.

Article 3 (Definition of Relevant Terms)

Definitions of following terms used in these Rules are:

The house demolishing party refers to the unit that has obtained the permit for house demolition and relocation;

The "owner" refers to the owner of the house that is (to be) demolished; and

The lessee of the house refers to the unit or individual person who has established legal lease relationship with the "owner" .

Article 4 (Basic Principle)

The demolition and relocation of urban houses shall meet the requirement of the city planning, be beneficial to the reform of old residential areas in the city, the improvement of ecological environment, and the protection of cultural relics and historic sites.

Article 5 (Rights and Duties of the Parties Involved in Demolition and Relocation of Houses)

The house demolishing party shall compensate and resettle the "owner" and the lessee of the house according to the provisions of these Rules, and the "owner" and the lessee of the house shall complete the removal within the time limit.

Article 6 (Administrative Department of Demolition and Relocation of Houses)

Shanghai Municipal Housing and Land Resource Administration (hereinafter referred to as SMHLRA) shall exercise supervision and administration on the demolition and relocation of houses in this Municipality.

District/county housing and land administrative department (hereinafter referred to as DCHLB) shall, under the leadership of the SMHLRA on business matters, exercise supervision and administration on the demolition and relocation of houses in its own administrative areas.

Article 7 (Co-ordination in Implementation)

The relevant departments of the municipal and district/county people's governments shall, according to the stipulations in these Rules, co-ordinate to ensure the smooth progress of the demolition and relocation of houses.

Article 8 (Activities Forbidden in Demolition and Relocation)

After the administrative department of planning has defined the area of demolition and relocation and issued the planned construction land-use permit, the unit and individual person in the defined area shall not be allowed to conduct the following activities:

1. To build new buildings, or to reconstruct or extend the original building and their attachments;

2. To change the use of original buildings or land;

3. To establish new lease relationship for the original buildings; and

4. To split tenant titles of the original buildings.

Article 9 (Notice of Stop Construction and the Announcement of Suspension of Application for Going-through Relevant Formalities)

After issuing the planned construction land-use permit, the administrative department of planning shall notify the unit or the individual person within the scope of demolition and relocation that has obtained the certificate for planned construction project to stop to build new buildings, to reconstruct or to extend the original buildings and their attachments.

The construction unit may, with the planned construction land-use permit, apply to DCHLB of the demolition and relocation area for the suspension of going through the examination and approval formalities for the changing of the use of houses and land, and the formalities for registration and filing of lease contracts. The time limit of the suspension of relevant formalities shall not exceed one year.

After receiving the application from the construction unit, the DCHLB shall publish the items stipulated in Article 8 of these Rules and the time limit of the suspension of relevant formalities within the demolition and relocation area in the form of public notice.

Article 10 (Application for Suspension of Relevant formalities for Key Municipal Urban Construction Projects)

To demolish and relocate houses because of key municipal urban construction projects, the construction unit may, with the approval documents issued by the Municipal Development and Planning Commission or the Municipal Construction and Administration Commission (hereinafter referred to as MCAC), apply to the planning administrative department for going through the suspension of notification formalities of building, reconstructing and extending the houses and their attachments, and to the DCHLB of the demolition and relocation area for the suspension of examination and approval formalities of changing the use of houses and land, and registration and filing formalities of lease contract.

Article 11 (Extension, Discharge and Postponement of Allotted Time of Suspension of Going Through Relevant Formalities)

To the construction unit that has obtained the permit for demolition and relocation of houses within the time limit for suspension of relevant procedures, the allotted time of the suspension shall be postponed to the expiration of the allotted time of the demolition and relocation. To the construction unit that has failed to obtain the permit for demolition and relocation of houses at the expiration of the allotted time of suspension of going through relevant formalities, the suspension shall terminate automatically.

In case of needing a postponement of suspension of going through relevant formalities, the construction unit shall apply to the DCHLB of the demolition and relocation area for a postponement of 30 days before the expiration of the original one. After examination and approval, the DCHLB shall issue a public notice 10 days before the expiration of the original time limit.

If the accumulated postponement of the allotted time of suspension of going through relevant formalities is within 6 months, the case shall be examined and approved by the DCHLB. If the accumulated postponement is over 6 months, the case shall be approved by the DCHLB after the examination by SMHLRA.

Article 12 (Application for House Demolition and Relocation Permit)

The construction unit that needs to demolish houses may conduct the demolition only after applying to the DCHLB of the demolition area and obtaining a permit for demolition. In case of demolition of houses because of key municipal urban construction projects, the construction unit shall apply to the SMHLRA.

The construction unit shall submit following documents when applying and obtaining the permit for demolition:

1. The approval documents of construction project;

2. The permit for construction land-use planning;

3. The approval documents of state-owned land-use right;

4. The plan and scheme of demolition and relocation;

5. The deposit certificate of the special deposit account of funds for the compensatory resettlement issued by a bank in this Municipality; and

6. The certificate of resettlement houses with clear property ownership and free of encumbrances.

The deposit amount stipulated in Item 5, clause 2 of this Article shall not be less than 30% of the total funds of the compensatory resettlement. In case the sum total of the deposit amount and the value of the resettlement houses is less than the total funds of the compensatory resettlement, the construction unit shall make definite the allotted time when the funds shall be in place by stages in the bank account in the scheme of demolition and relocation.

The resettlement houses stipulated in Item 6, clause 2 of this Article shall satisfy the National Quality and Safety Standard and the Municipal Infrastructure Requirements for Public Construction.

Article 13 (Examination and Issue of House Demolition Permit)

The SMHLRA and the DCHLB shall examine the application items within 30 days upon receiving the application for house demolition. To the cases that satisfy the requirements, DCHLB shall issue the permit for house demolition.

In case the application for house demolition involves any one of the following situations, the DCHLB shall issue the permit for house demolition after reporting to the SMHLRA for examination and approval:

1. The architectural types of the house to be demolished belong to the category of modern terrace houses, independent sets in new workers' settlement, and new residential house with a garden or apartments;

2. The allotted time for demolition is over one year; and

3. Other situations to be examined and approved by SMHLRA required by the Municipal People's Government.

The permit for house demolition shall define items like the house demolishing party, the demolition area, and the allotted time, etc.

Article 14 (Announcement of Demolition)

At the same time of issuing the permit for house demolition, the DCHLB shall, in the form of public notice about house demolition, announce the items like the house demolishing party, demolition area and allotted time defined in the permit.

The DCHLB and the house demolishing party shall do a good job of the wide-spreading and explanation of the house demolition policies and plans.

Article 15 (Alteration of Demolition Area)

The house demolishing party shall conduct the demolition and resettlement within the area specified in the permit for house demolition and cannot increase or reduce the area without authorization. In case of real need of increasing or reducing the demolition area, the house demolishing party shall go through planning and land-use approval formalities according to regulations, and apply to the DCHLB that originally issued the permit for house demolition for the alteration of the demolition area.

After the alteration is approved, the DCHLB shall announce the relevant contents defined in the altered permit for house demolition.

Article 16 (Postponement of Demolition Allotted Time)

The house demolishing party shall complete the house demolition and relocation within the allotted time. In case of real need, the house demolishing party shall apply to the DCHLB for a postponement of the allotted time 15 days before the expiration of the original allotted time. The DCHLB shall give a reply within 10 days upon receiving the application.

If the accumulated postponement of the allotted time of house demolition and relocation exceeds one year, the DCHLB shall give a reply to the applicant after an examination and approval by SMHLRA.

If the postponement is approved, the DCHLB shall announce the relevant contents defined in the altered permit for house demolition.

Article 17 (Demolition and Relocation Conducted by the house demolishing Party or Entrusted to a Third Party)

The house demolishing party may conduct the demolition and relocation by itself, or may entrust a unit that has obtained a qualification certificate of house demolition and relocation issued by the SMHLRA (hereinafter referred to as a house demolishing unit) to do the job. The DCHLB can neither be the house demolishing party, nor be entrusted to conduct the demolition and relocation.

In case the house demolishing party entrusts the demolition and relocation to a house demolishing unit, the former shall offer the latter a certificate of entrustment, and sign a contract on that business. The house demolishing party shall, within 15 days upon the signature of the entrustment contract, report the contract to the DCHLB for the record.

When conducting the house demolition and relocation, the entrusted unit shall show the certificate of entrustment.

The entrusted unit shall charge fees according to its actual service. The standard of demolition service fees shall be formulated by the competent municipal price control department jointly with the SMHLRA.

The entrusted unit shall not transfer the house demolition business.

Article 18 (Training and Examination and Verification of House Demolition and Relocation Staff)

The personnel doing the demolition and relocation job employed by either the house demolishing party or the house demolition unit shall go through training and examination on relevant laws and professional knowledge, and may do the demolition and relocation job only after receiving the going on post work permit for personnel undertaking house demolition and relocation in this Municipality issued by the SMHLRA.

Article 19 (Parties Concerned In Signing Agreement on Compensatory Resettlement)

The house demolition party shall sign an agreement on compensatory resettlement with the "owner" .

In case of demolishing a leased house, the house demolishing party shall sign an agreement on compensatory resettlement with both the "owner" and the lessee. If a case satisfies any one of the following situations, the house demolishing party shall sign an agreement on compensatory resettlement separately with both the "owner" and the lessee:

1. To demolish public-owned houses for lease with the choice of monetary compensation by the "owner" ;

2. To demolish private-owned residential houses charging government regulated rent standard;

3. To demolish houses managed by housing and land administrative departments on behalf of the owner according to law; and

4. To demolish houses leased out and managed by housing and land administrative departments on behalf of religious institutions.

Article 20 (Ascertaining the "Owners" and Lessees of the to be Demolished House)

The "owner" and the lessee shall be accounted as a family unit according to the legal valid real estate property right certificate, the public-owned house certificate, and the house lease contract upon the date of the issue of the permit for house demolition, and shall be resettled with compensation by the house demolishing party.

The "owner" and the lessee who may sign an agreement on compensatory resettlement with the house demolishing party shall be determined according to the owner named in the real estate property right certificate, or the lessee named in the public-owned house lease certificate or the house lease contract.

Article 21 (Major Contents in the Agreement on Compensatory Resettlement)

The contents in the agreement on compensatory resettlement shall include:

1. The construction area of the house to be demolished;

2. The amount of monetary compensation;

3. Ways of compensatory resettlement;

4. The time limit of removing; and

5. Other items agreed by the parties concerned.

In case where the exchange of house is involved, the contents in the agreement on compensatory resettlement shall, in addition, include items like the value of the house for resettlement in terms of money, its construction area, location and floor number, etc.

The modal text of the agreement on compensatory resettlement shall be formulated by the SMHLRA to be taken as reference by the parties concerned.

Within 30 days upon the expiration of the allotted time of demolition and relocation, the house demolishing party shall report all the agreements signed on compensatory resettlement to DCHLB for the record.

Article 22 (Notice to Owners of Private-owned House Living Outside the Demolition Area)

In case the owner of the to be demolished private-owned house lives outside the to be demolished area, his/her agent or the tenant shall be responsible for informing the owner of the private owned house to go through the formalities of compensatory resettlement. In case of an empty house, the responsibility of informing the owner lies on the house demolishing party.

Upon expiration of the first approved allotted time defined in the permit for house demolition, if the notice is still unable reach the "owner" , the house demolishing party shall make a detailed record of a survey of the house to be demolished, apply to a notary organ for preservation of evidence, and the depositing of compensation money, and make out a temporary resettlement scheme for the lessee. With the approval of DCHLB, the house demolishing party may start the demolition to make room for the project.

Article 23 (Arbitration, Lawsuit and Enforcement in Advance)

After the signature of the agreement on compensatory resettlement, if the "owner" or the lessee of the to be demolished house does not complete the removal within the allotted time stipulated in the agreement, the house demolishing party may, according to law, apply to an arbitration institution for an arbitration, or bring a lawsuit in a people's court. During the lawsuit, in case the house demolishing party provides an equivalent house for exchange, the demolishing party may apply to the people's court for enforcement in advance.

Article 24 (Ruling)

In case the agreement on compensatory resettlement cannot be reached between the house demolishing party and the "owner" , or the lessee, the DCHLB of the demolition area shall give its ruling upon application by the party concerned. The ruling shall be given within 30 days upon receiving the application.

In case of residential houses, a dispute on the compensatory resettlement shall be resolved by giving a ruling a house exchange. In case of non-residential houses, a dispute on the compensatory resettlement may be resolved by giving a ruling either a house exchange or monetary compensation.

If the party concerned does not accept the ruling, it may apply to the administrative organ with jurisdiction for an administrative reconsideration within 60 days upon receiving the ruling, or bring a lawsuit in a people's court within 3 months upon receiving the ruling. In case the house demolishing party has provided house for resettlement or monetary compensation according to the stipulations in these Rules, the performance of the ruling shall not be suspended during the administrative reconsideration or the lawsuit.

Article 25 (Enforcement after Ruling)

In case the "owner" or the lessee of the to be demolished house does not complete the removal within the allotted time specified in the ruling, the district/county people's government shall, upon the application by DCHLB, instruct an enforcement by the DCHLB and public security organs and other relevant departments; or, the DCHLB may apply to the people's court for an enforcement.

In case the enforcement conducted by relevant departments under the instruction from the district/county people's government, a notice shall be delivered to the party concerned in advance.

Before the enforcement, the house demolishing party shall apply to the notary organ for evidence preservation on relevant matters about the house being demolished.

Article 26 (Resolving the Dispute Caused by Demolition and Relocation for Municipal Urban Construction Projects)

In case of demolition and relocation for a municipal urban construction project, a dispute shall be resolved under the principle of demolition and relocation to make room for the project first and settlement of dispute later. The owner and its competent superior unit shall satisfy the need of the construction and ensure the completion of removal within the allotted time according to the need of the project.

Article 27 (Obligations of the User of the Houses to be Demolished)

The "owner" or the lessee shall be responsible for the removal of the user of the house to be demolished within the allotted time stipulated in the agreement on compensatory resettlement or in the ruling. In case the user of the house fails to move out, it shall be considered a failure of the "owner" or the lessee to complete the removal.

Article 28 (Performance of Special Provisions)

In case the demolition and relocation involve military facilities, churches, temples, historical sites or houses that belong to foreign embassies or consulates in China, it shall be handled according to relevant laws and regulations.

Article 29 (Handling of Transfer of Construction Project)

In case a construction project is transferred during the allotted time for demolition and relocation, the party concerned shall complete the formalities of alteration of the permit for house demolition with the approval of the DCHLB. The DCHLB shall announce the relevant contents in the altered permit for house demolition.

In case the transferor of the construction project has not performed the relevant rights and obligations stipulated in the agreement on compensatory resettlement or in the ruling, the transferee shall be continue to perform the rights and obligations. The transferor and the transferee of the project shall inform the "owner" and the lessee in writing, and make an announcement within 30 days upon the signing of the transfer contract.

Any alteration of a construction unit occurred during the allotted time of demolition and relocation caused by whatever reasons shall be handled according to this Article.

Article 30 (Supervision Over Use of Compensatory Resettlement Funds)

The compensatory resettlement funds shall be used solely for the compensatory resettlement due to house demolition and relocation, and shall not be misappropriated for other purpose.

The SMHLRA and the DCHLB shall strengthen the supervision over the use of the fund, the bank issuing the certificate of the deposit of funds of compensatory resettlement shall co-ordinate in the supervision.

Article 31 (Supervision and Inspection of Demolition Activities and Administration of Archives)

The SMHLRA and the DCHLB shall strengthen the supervision over and inspection of demolition and relocation activities. The house demolishing party and the house demolishing unit shall be responsible for providing relevant situations and materials.

The SMHLRA and the DCHLB shall establish and consolidate the systems concerning the administration of house demolition and relocation archives. The house demolishing party and the house demolishing unit shall, according to relevant State and municipal regulations, establish house demolition and relocation archives, report relevant information in time, and accept supervision and examination.

Article 32 (Ways of Compensatory Resettlement)

Compensatory resettlement may be conducted by means of monetary compensation or an exchange of houses with property right at the value equivalent to the monetary compensation (hereinafter referred to as "value standard house exchange" ). In case of the demolition of residential houses, the compensatory resettlement may also be conducted by means of an exchange of houses with property right at other location without settling the price difference within the resettlement area based on the construction area of the house to be demolished (hereinafter referred to as "area standard house exchange" )

The demolition of the attachment to houses used for non-public-welfare purposes shall not be compensated with house exchange, but with monetary compensation by the house demolishing party.

The "owner" and the lessee may choose the way of compensatory resettlement according to the provisions of this Chapter.

In case of house exchange, the house demolishing party shall provide two or more resettlement houses for the owner or the lessee's choice.

Article 33 (Amount of Monetary Compensation For Residential Houses)

In case of demolition of residential houses, the decision of the amount of monetary compensation shall be based on the assessed unit price of the to be demolished house in the real estate market and the construction area of the house demolished.

In the implementation of Article 35, Article 36, and Clause 1 and Clause 3 of Article 37 in these Rules, the unit price of the to be demolished house in the real estate market and the price subsidy shall be adopted. The unit price of the to be demolished house in the real estate market means the assessed unit price in the real estate market. If the assessed unit price in the real estate market is lower than the minimum standard of the unit price for compensation, it shall be calculated according to the minimum standard.

The minimum standard of the unit price for compensation means the average market unit price of the purchased public-owned residential houses in the same region of the to be demolished houses traded in the real estate market.

The unit price mentioned in this Article means the price per square meter of construction area.

The average market unit price of the purchased public-owned residential houses traded in the real estate market shall be published periodically according to the regions delimited by district/county people's government.

The standard of price subsidy shall be drawn up by the municipal competent price control department jointly with the Municipal Construction Commission and the SMHLRA.

Article 34 (Settlement of Price Difference for "Value Standard House Exchange" )

In case of "value standard house exchange" , the difference of price shall be settled according to the amount of monetary compensation and the real estate market price of the resettlement house stipulated in this Chapter.

Article 35 (Compensatory Resettlement of Private-owned Residential not yet Leased)

In case of demolition of private-owned residential houses not yet leased, the house demolishing party shall offer compensatory resettlement. The calculation formula of the amount of monetary compensation shall be: (the real estate market unit price of the to be demolished house + price subsidy) x the construction area of the house demolished.

Article 36 (Compensatory Resettlement of Residential Houses for Lease Charging Negotiated Rental Standard)

In case of demolition of residential houses for lease charging a rent negotiated and agreed upon by both parties, and the "owner" and the lessee have reached an agreement on the termination of the lease contract, the house demolishing party shall offer the "owner" a compensatory resettlement, the calculation formula of the monetary compensation shall be: (the real estate market unit price of the to be demolished house + price subsidy) x the construction area of the to be demolished house.

In case the "owner" fails to reach an agreement on the termination of the lease contract with the lessee, the house demolishing party shall offer the "owner" a house exchange. The resettlement house shall be leased to the original lessee, and the "owner" shall sign a new lease contract with the original lessee.

Article 37 (Compensatory Resettlement of Public-owned Residential Houses Charging Government Regulated Rental Standard)

In case of demolition of public -owned residential houses for lease charging government regulated rental standard with the owner's choice of house exchange, the house demolishing party shall resettle the lessee, and the original lease contract shall remain effective. The calculation formula of the monetary compensation shall be: (the real estate market unit price of the to be demolished house + price subsidy) x the construction area of the to be demolished house.

In case of demolition of public-owned residential houses for lease charging government regulated rental standard with the owner's choice of monetary compensation, the lease contract shall be terminated. The calculation formula of the monetary compensation shall be: the real estate market assessed unit price of the to be demolished house x the construction area of the to be demolished house x 20%.

In case of demolition of public-owned residential houses for lease charging government regulated rental standard with the owner's choice of monetary compensation, the house demolishing party shall offer the lessee compensatory resettlement according to the following provisions:

1. In case of the lessee's choice of monetary compensation or "value standard house exchange" , the calculation formula of the amount of monetary compensation shall be: (the real estate market unit price of the to be demolished house x 80% + price subsidy) x the construction area of the to be demolished house; and

2. In case of satisfying the provisions in Article 39 of these Rules, the lessee may choose "area standard house exchange" as well.

Article 38 (Compensatory Resettlement of Private-owned Residential Houses For lease charging Government Regulated Rental Standard)

In case of demolition of private-owned residential houses for lease charging government regulated rental standard, the lease contract shall be terminated.

The "owner" may choose either monetary compensation or "value standard house exchange" . The calculation formula of the amount of monetary compensation shall be: the real estate market assessed unit price of the to be demolished house x the construction area of the house demolished x 100 %.

The compensatory resettlement of the lessee shall be conducted according to Clause 3, Article 37 of these Rules.

Article 39 ( "Area Standard House Exchange" )

In case of demolition of houses belonging to old-terrace-house type, crude shacks or other non-self- independent residential rooms, if satisfying the conditions regulated by district/county people's government of the region of the to be demolished and relocated houses, the following "owners" and lessees may choose "area standard house exchange" :

1. "Owners" of private-owned residential houses not yet leased;

2. Lessees of public-owned residential houses for lease charging government regulated rental standard with the exception that the "owner" unit chooses house exchange; and

3. Lessees of private-owned residential houses charging government regulated rental standard, houses owned by religious institutions leased through the agency of housing administrative department, or houses entrusted to the management of housing administrative department according to law.

The required floor area for resettlement of "area standard house exchange" shall be increased in accordance with the ratio listed in the following table with reference of the construction area of the house to be demolished:

Grade of locality of the to be demolished house

Grade of locality of the house for resettlement

4

5

6

1, 2, 3

30%

60%

100%

4

----

40%

70%

The grade of locality of houses listed in the preceding clause shall be defined by SMHLRA.

The minimum standard of the intended resettlement floor area for each relocated household and the standard of increased resettlement floor area for houses located in Grade 5 or 6 locality that are going to be demolished shall be stipulated by district/county people's government of the region to be demolished.

In case the construction area of the resettlement house exceeds the required resettlement area, the owner or the lessee shall pay for the exceeding part according to the real estate market price of the resettlement house.

This Article does not apply to the resettlement houses located in locality of Grade 1, 2, 3, or the case that both the houses to be demolished and the resettlement houses are located in locality of Grade 4.

Article 40 (Compensatory Resettlement of Low-income Household with Residential Problems)

In case of demolition of low-rent houses, the house demolishing party shall offer priority of "area standard house exchange" and may also give reasonable reduction or remittance of the payment for the exceeding part of the required resettlement area.

In case the owner or the tenant is a senior solitary, a disabled solitary or an orphan, area standard house exchange shall be offered with reference of the preceding clause.

Article 41 (Transitional Period for Demolition of Residential Houses)

In case the to be demolished house is exchanged with a future house, the house demolishing party and the "owner" or the lessee shall reach an agreement on a transitional period of residence according to the progress of construction in the agreement on the compensatory resettlement, and observe the agreement.

In the transitional period, the "owner" or the lessee shall arrange his or her own residence.

Article 42 (Relevant Fees of removal Subsidy for Demolition of Residential Houses)

The house demolishing party shall pay the "owner" or the lessee of the to be demolished houses fees for removal, transportation and re-installation of equipment, temporary settlement subsidy during the transitional period, and shall increase the temporary subsidy from the month the transitional period begins to be prolonged.

The standard of fees for removal, transportation and re-installation of equipment, and the temporary subsidy shall be stipulated by the competent municipal price control department jointly with the SMHLRA.

Article 43 (Amount of Monetary Compensation for Non-residential Houses and Settlement of Price Difference of House Exchange)

In case of demolition of non-residential houses, the amount of monetary compensation shall be defined according to the real estate market price of the to be demolished house; in case of "value standard house exchange" , the price difference shall be settled according to the amount of monetary compensation and the real estate market price of the resettlement house.

Article 44 (Compensatory Resettlement of Non-Residential Houses)

In case of demolition of non-residential houses not for lease, or of non-residential houses for lease charging a rent negotiated and agreed upon by both parties, if the "owner" and the lessee have reached an agreement on the termination of the lease contract, the house demolishing party may offer the "owner" a compensatory resettlement. If the "owner" and the lessee fail to reach such an agreement, the house demolishing party may offer the "owner" a "value standard house exchange" . The resettlement house shall be leased to the original lessee. The "owner" shall sign a new lease contract with the original lessee.

In case of demolition of public-owned residential houses for lease charging government regulated rental standard with the owner's choice of "value standard house exchange" , the "owner" shall resettle the lessee and maintain the lease contract. In case of the owner's choice of monetary compensation, the house demolishing party shall pay 20% of the real estate market price of the to be demolished house to the "owner" , and pay the other 80% to the lessee, and the lease contract shall be terminated.

Article 45 (Compensation for Relevant Fees for Demolition of Non-Residential Houses)

In case of demolition of non-residential houses, the house demolishing party shall compensate the "owner" or the lessee following fees:

1. Fees for transportation and installation of equipment at the price regulated by the State or this Municipality;

2. Fees for the purchase of new equipment due to the irrevocability of the old ones; and

3. Reasonable compensation for the suspension of production or business due to the demolition.

Article 46 (Demolition of Houses for Public Welfare)

In case of demolition of houses for Public welfare and their attachments, the house demolishing party shall, in accordance with relevant laws and regulations, and the requirements of the city planning, re-build them according to the original nature and scale, or offer a compensation according to the real estate market price.

Article 47 (Demolition of Houses Owned by Religious Institutions)

In case of demolition of houses owned by a religious institution, the house demolishing party shall first solicit the opinion of the administrative department of religious affairs and sign an agreement on compensatory resettlement with the religious institution.

In case of demolition of religious institution owned houses for lease through the agency of housing management department, the lease contract shall be terminated. In case of residential houses, the ways and standard of compensatory resettlement shall be conducted according to Article 38 of these Rules. In case of non-residential houses, both the "owner" and the lessee may choose either monetary compensation or "value standard house exchange" . In this case, the amount of monetary compensation to the "owner" shall be 100% of the real estate market price of the to be demolished house, while the compensation to the lessee shall be 80% of the same amount.

Article 48 (Demolition of Houses Entrusted by Law)

In case of demolition of houses entrusted to the housing administrative department by law, the house demolishing party shall sign an agreement on compensatory resettlement with the agent. The agreement shall be notarized by a notary organ, and the relevant documents of demolition shall go through the formalities of evidence preservation with a notary organ. The ways and standard of compensatory resettlement shall then be conducted according to Clause 2, Article 47 of these Rules.

Article 49 (Demolition of Related Public Facilities)

In case of demolition of public facilities like traffic control police boxes, traffic signs, and traffic guardrails, mailboxes, dustbins, bus-stops, civil defense facilities and trees and lawns necessitated by the demolition, the house demolishing party shall re-build them or offer reasonable compensation.

Expenses for removing pipelines or for laying temporary pipelines required by the demolition shall be born by the house demolishing party with the exception of expenses for placing or building new or extending various pipelines in combination of the extension of roads in accordance with the city planning.

Article 50 (Demolition of Houses Whose Ownership is Unclear and Indefinite)

In case of demolition of houses whose ownership is unclear and indefinite, the house demolishing party shall draw up a compensatory resettlement scheme, make a record of a survey of the to be demolished house, and go through the formalities of evidence preservation, and deposit the compensatory money with a notary organ, and shall conduct the demolition only after the examination, verification and approval of the DCHLB.

Article 51 (Demolition of Houses Encumbered with Mortgage)

In case of demolition of houses encumbered with mortgage, the mortgagor and the mortgagee shall, in accordance with the provisions of the "Procedures of Shanghai Municipality on Real Estate Mortgage", negotiate on problems of how to handle the mortgage and the debt it secures, and present the agreement in writing to the house demolishing party, only then can the "owner" be offered monetary compensation or house for resettlement.

In case the mortgagor and the mortgagee fail to reach an agreement, the house demolishing party shall offer the mortgagor monetary compensation, and deposit the compensatory money at a notary organ.

Article 52 (Demolition of Unauthorized Constructions and Temporary Buildings)

The demolition of unauthorized constructions and the temporary buildings that exceeds the approved allotted time shall not be compensated. The demolition of temporary buildings that are still within the approved allotted time shall be reasonably compensated.

After receiving the notice on the suspension of construction, if the "owner" continues the construction of the building or its attachment, the newly built, or re-constructed, or the extended part shall not be compensated.

Article 53 (Appraisal Organization and Assessment Time)

The assessed unit price of residential houses in the real estate market and the real estate market price of non-residential houses mentioned in these Rules shall be assessed by an appraisal organization qualified by the SMHLRA for assessment of house demolition and entrusted by the house demolishing party. The appraisal organization shall conduct the assessment according to factors like grade of locality, use area and construction area of the to be demolished house. The assessment time is defined as the date on which the permit for house demolition is issued.

In case of a dispute on the result of the assessment, the party concerned may apply to the committee of appraisal specialists organized by Shanghai Municipal Association of Real Estate Appraisers for an expert conclusion within 15 days upon receiving the assessment report. If the party concerned does not apply for an expert conclusion, the assessment report shall be taken as the basis of ruling. If the party concerned applies for an expert conclusion, the expert conclusion shall be taken as the basis of ruling.

The technical norms, the procedures of dispute settlement concerning the assessment of house demolition and administrative norms shall be formulated by the SMHLRA.

The competent municipal price control department jointly with the SMHLRA shall draw up the standard of service charge for the assessment of house demolition.

Article 54 (Ownership of Compensatory Money or Resettlement Houses and the Resettlement of the Lessee)

The compensatory money or the resettlement house offered by the house demolishing party to the "owner" belongs to the "owner" . The "owner" shall be responsible for the resettlement of the lessee.

The compensatory money or the resettlement house offered by the house demolishing party to the lessee belongs to the lessee and the person (s) living together with him or her.

Article 55 (Special Deposit Receipt)

The house demolishing party shall deposit the compensatory money in a bank in this Municipality in the name of the "owner" or the lessee, and the bank shall issue a special deposit receipt.

The special deposit receipt may be used to pay for the purchase of house or be cashed.

Article 56 (Payment of Compensatory Money or the Difference in House Exchange)

The time for the house demolishing party to pay the compensatory money or difference in house exchange shall be stipulated in the agreement on compensatory resettlement. If it is not stipulated, it shall be paid off once within one month after the "owner" or the lessee has removed from the original address.

The time for the "owner" or the lessee to pay the difference in house exchange shall be stipulated in the agreement on compensatory resettlement; if not stipulated, it shall be paid off once when the demolishing party delivers the house.

The "owner" or the lessee may pay the difference in house exchange in cash or through bank loan.

In case of a ruling on demolition, the time to pay the difference in compensatory money or house exchange may be determined by taking the above provisions as reference.

Article 57 (Cancellation of Real Estate Property Right Certificate)

After the house demolishing party has compensated for the resettlement of the "owner" , the "owner" shall hand over the real estate property right certificate to the house demolishing party to take care of it, and the house demolishing party shall hand it over to the real estate registration department for a cancellation.

Article 58 (Depositing of Refused Compensatory Money)

After the ruling over a dispute on the compensatory resettlement, if the "owner" does not apply for an administrative reconsideration, nor brings an administrative action, and refuse to take the compensatory money, the house demolishing party may deposit the money in the notary organ.

Article 59 (Punishment for Unauthorized Demolition)

If the house demolishing party conducts the demolition without obtaining the permit for house demolition in violation of Article 12 of these Rules, the SMHLRA or the DCHLB shall order the violator to stop the demolition and give him a warning and shall cumulatively penalize him with a fine of between not less than 20 yuan and not more than 50 yuan per square meter of the construction area of the house being demolished.

Article 60 (Punishment for Providing False Document to Obtain Permit for House Demolition by Fraud)

If the house demolishing party provides false documents to obtain the permit for house demolition by fraud in violation of Article 12 of these Rules, the SMHLRA or the DCHLB shall cancel the violator the permit for house demolition and shall cumulatively penalize him with a fine of between not less than 1% and not more than 3% of the total amount of the compensatory resettlement funds.

Article 61 (Punishment for Failure to Put Compensatory Resettlement Funds in Place)

In case the house demolishing party fails to provide compensatory resettlement funds according to the schedule of putting the funds in place stipulated in Article 12 of these Rules, the SMHLRA or the DCHLB shall order the violator to suspend the demolition, and to provide certificate of funds within specified deadline. If the house demolishing party still fails to provide the certificate of putting the capital in place when the deadline is due, the SMHLRA or the DCHLB shall cancel its permit for house demolition.

Article 62 (Punishment for Certain Illegal Acts)

In case the house demolishing party does any one of the following acts, the SMHLRA or the DCHLB shall order it to suspend the demolition, and give him a warning and cumulatively penalize him with a fine of not more than 3% of the total amount of the compensatory resettlement funds. If the case is serious, the permit for house demolition shall be cancelled:

1. The house demolishing party does not conduct the demolition and relocation within the area specified in the permit for house demolition in violation of Article 15 of these Rules;

2. The demolishing party does not conduct the demolition within the allotted time specified in the permit for house demolition in violation of Article 16 of these Rules; and

3. The house demolishing party entrusts the demolition and relocation to a unit without the qualification for house demolition and relocation in violation of Article 17 of these Rules.

The house demolishing party in violation of Article 53 of these Rules entrusts a unit without the qualification for house demolition, the SMHLRA or the DCHLB shall order the violator to suspend the demolition and give him a warning and penalize him cumulatively with a fine of not more than 3% of the total amount of the compensatory resettlement funds but not more than 30,000 yuan. If the case is serious, the permit for house demolition shall be cancelled.

Article 63 (Punishment for Transfer of Demolition Business)

If the entrusted house demolishing unit transfers the demolition business to a third party in violation of Article 17 of these Rules, the SMHLRA or the DCHLB shall order it to rectify, shall confiscate the unlawful gains, and penalize him cumulatively with a fine of between not less than 20% and not more than 50% of the total demolition service fee specified in the entrustment contract.

Article 64 (Administrative Reconsideration and Lawsuit)

In case the party being punished does not accept the administrative punishment, it may apply for an administrative reconsideration according to law, or bring a lawsuit in a people's court according to law.

In case the party concerned does not apply for an administrative reconsideration, nor brings a lawsuit, nor performs the punishment decision, the organ that has made the punishment decision may apply to the people's court for enforcement.

Article 65 (Administrative Liability)

In case the SMHLRA or the DCHLB verifies and issues a permit for house demolition or other approved documents in violation of these Rules, or does not perform the duty of supervision and administration after verifying and issuing of a permit for house demolition or other approved documents, or does not investigate or punish the illegal activities, the directly responsible leaders and other directly liable personnel shall be given disciplinary sanction. In case the wrongful act constitute a crime, the wrongdoer shall be prosecuted for his criminal liability according to law.

Article 66 (Paid leave for Residents Involved in House Demolition and Relocation)

An employed person may have a two-day leave with payment from the employer-unit to remove his home due to the house demolition and resettlement with the certificate issued by the DCHLB.

Article 67 (Compensatory Resettlement for House on Land After Requisition)

The procedures on the compensation and resettlement of the demolition and relocation of houses and their attachment on requisitioned collective-owned land shall be promulgated separately.

Article 68 (Interpretation of Actual Application)

The SMHLRA shall be responsible for the interpretation of these Rules in the specific application.

Article 69 (Effective Date)

These Rules shall become effective on November 1, 2001. Meanwhile the "Rules of Shanghai Municipality on the Implementation of the Administration of Demolition and Relocation of Urban Houses" promulgated by the Municipal People's Government on July 19, 1991, the "Procedures of Shanghai Municipality On Demolition, Relocation, Resettlement and Compensation for Houses Used for Business by Self-employed Workers" promulgated by the Municipal People's Government on April 22, 1997, and the "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 (for trial Implementation)" promulgated by the Municipal People's Government on December 8, 1997 shall be repealed. In case any other regulations concerning the administration of demolition and relocation promulgated by the Municipal People's Government that is inconsistent with these Rules, these Rules shall prevail.