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Article 37 No following real estate shall be transferred:
1. The land-use right is obtained by mode of granting, but not meeting conditions set forth in Article 38 of this Law;
2. The rights of real estate are sealed up by order of the judicial organ or decision of the administrative organ pursuant to law or limited by other ways;
3. The land-use right is reclaimed in accordance with the law;
4. For jointly-owned real estate, written consent of other co-owners has not been obtained;
5. The ownership is under dispute;
6. The real estate is not registered in accordance with the law and the certificate of the ownership is not obtained; or
7. Other circumstances under which transfer is prohibited by the provisions of laws, administrative rules and regulations.
Article 38 Where the land-use right is obtained by mode of granting, transfer of the real estate shall meet the following conditions:
1. to have paid all the fees for the granting of the land-use right as agreed upon in the granting contract and obtained the certificate of the land-use right; and
2. to have invested for development as agreed upon in the granting contract and have fulfilled twenty-five percent or more of the total investment for development in the case of housing projects, or have constituted conditions of land-use for industrial purposes or other construction projects in the case of developing tracts of land.
Where real estate is transferred with the construction of houses completed, the certificate of the house ownership shall be acquired.
Article 39 Where the land-use right is obtained by mode of allocation, the transfer of the real estate shall, according to the provisions of the State Council, be reported for examination and approval to the people's government that has the authority for approval. Upon approval of the transfer by the people's government with the authority for approval, the transferee shall go through the formalities for the granting of the land-use right and pay the fees therefor according to the relevant provisions of the State.
Where the land-use right is obtained by mode of allocation and the transfer of the real estate is reported for approval, and where the people's government that has the authority for approval decides in accordance with the provisions of the State Council that the formalities for granting the land-use right need not be gone through, the transferor shall, pursuant to the provisions of the State Council, turn over to the State the proceeds obtained from land in the transfer of the real estate or dispose of such proceeds otherwise.
Article 40 For the transfer of real estate, a written transfer contract shall be concluded in which the mode of obtaining the land-use right shall be stated.
Article 41 When real estate is transferred, the rights and obligations stated in the contract for granting the land-use right shall be transferred therewith.
Article 42 Where the land-use right is obtained by mode of granting and after the real estate is transferred, the term for the use of the land-use right shall be the remaining years after subtracting the years of use by the former land user from the original term agreed upon in the contract for granting the land-use right.
Article 43 Where the land-use right is obtained by mode of granting and after the real estate is transferred, the transferee modifies the land-use purpose agreed upon in the contract for granting the land-use right, the transferee must obtain consent from the transferor and the administrative department in charge of urban planning under the people's government of the relevant city or county, and conclude an agreement on the modification of the contract for granting the land-use right or enter into a new contract for granting the land-use right and readjust the fees for granting the land-use right accordingly.
Article 44 For the presale of commercial houses, the following conditions shall be met:
1. to have paid all the fees for the granting of the land-use right and obtained the certificate of the land-use right;
2. to have a permit for construction project planning;
3. the funds put into the development construction have reached twenty-five percent or more of the total investment for the construction project, computed on the basis of the commercial houses provided for presale, and the schedule of construction and the date of completion for delivery have been set; and
4. to make registration for presale at the administrative department in charge of house property under the people's government at or above the county level and to obtain the certificate of permission for the presale of commercial houses.
Pre-sellers of commercial houses shall, in accordance with the relevant provisions of the State, submit the presale contracts to the departments of housing administration and departments of land administration under the people's governments at or above the county level for registration and record.
The proceeds obtained from the presale of commercial houses must be used for the relevant construction projects.
Article 45 In the case of presale of commercial houses, matters concerning the transfer of incomplete pre-sold commercial houses that the buyers have purchased shall be prescribed by the State Council.
Section 3 Mortgage of Real Estate
Article 46 Mortgage of real estate refers to acts that a mortgagor provides the mortgagee security for the payment of a debt with his legal real estate in the manner that the possession of his real estate is not transferred. Where a debtor fails to pay his debt, the mortgagee shall have the right in accordance with the law to enjoy the priority in compensation to be paid with funds obtained from auction of the real estate mortgaged.
Article 47 A mortgage may be created on the ownership of a house obtained according to law together with the land-use right to the house site.
A mortgage may be created on the land-use right obtained by mode of granting.
Article 48 The mortgage of real estate shall be dealt with on the strength of the certificate of the land-use right and the certificate of ownership of the house.
Article 49 For the mortgage of real estate, the mortgagor and the mortgagee shall enter into a written mortgage contract.
Article 50 Where the land-use right on which a mortgage is created is obtained by mode of allocation, the mortgagee may enjoy the priority in compensation only after the amount equal to the fees for the granting of the land-use right is paid from the funds obtained from auction of the real estate done in accordance with the law.
Article 51 After a contract for the mortgage of the real estate is concluded, newly-built houses on the land shall not be regarded as the mortgaged asset. If the mortgaged real estate needs to be sold by auction, the newly-built houses on the land may be auctioned off according to law together with the mortgaged assets. However, the mortgagee shall not have the priority in compensation with respect to the funds obtained from auction of the newly-built houses.
Section 4 Lease of Houses
Article 52 Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a leaser for use and the leaser pays rent for the house to the leaser.
Article 53 In the lease of a house, the leaser and the leaser shall conclude a written lease contract defining such matters as the term, purpose, and price of the lease, liability for repair, as well as other rights and obligations of both parties, and shall register the lease with the department of housing administration for the record.
Article 54 Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and the people's government of the city where the houses are located. Where houses are leased for activities of production and business operation, the rent and other terms for the lease shall be determined by both parties through consultation.
Article 55 Where an owner of a house, for profit-making purposes, leases the house built on the State-owned land, the land-use right for which is obtained by mode of allocation, he shall turn over to the State the proceeds derived from the land and contained in the rent. The specific measures shall be prescribed by the State Council.
Section 5 Intermediary Service Agencies
Article 56 Intermediary service agencies for real estate include real estate consultant agencies, real estate price appraisal agencies and real estate broking agencies.
Article 57 Intermediary service agencies for real estate shall meet the following conditions:
1. to have names and institutional structures of their own;
2. to have fixed premises to provide services;
3. to have necessary property and funds;
4. to have sufficient professional personnel; and
5. other conditions provided by laws, administrative rules and regulations.
For establishing an intermediary service agency for real estate, an application for registration of the establishment shall be submitted to the administrative department for industry and commerce and a business licence shall be obtained, before it starts its business.
Article 58 The State shall practise a qualification authentication system for real estate price appraisers.
Chapter V Administration of Real Estate Ownership Registration
Article 59 The State shall practise a system of registration and certification for land-use right and ownership of houses.
Article 60 Where the land-use right is obtained by mode of granting or allocation, an application for registration shall be submitted to the department of land administration under the local people's government at or above the county level. Upon verification by the department of land administration under the local people's government at or above the county level, the certificate of the land-use right shall be issued by the people's government at the corresponding level.
Where a house is built on the land for real estate development obtained pursuant to the law, an application for registration shall, on the strength of the certificate of land-use right, be submitted to the department of housing administration under the local people's government at or above the county level. The department of housing administration under the local people's government at or above the country level shall issue the certificate of ownership of the house after verification.
Where transfer or modification of real estate is made, an application for registration of the modification of house property shall be submitted to the department of housing administration under the local people's government at or above the county level and on the strength of the certificate of the ownership of the house after modification, an application for registration of the modification of the land-use right shall be submitted to the department of land administration under the people's government at the corresponding level. Upon verification by the department of land administration under the people's government at the corresponding level, a new or a modified certificate of the land-use right shall be issued by the people's government at the corresponding level.
Where provided otherwise by laws, the provisions of relevant laws shall apply.
Article 61 Where real estate is mortgaged, registration of mortgage shall be made with the department designated by the local people's government at or above the county level.
Where the land-use right and the ownership of a house are obtained from disposal of mortgaged real estate, the change of ownership for the land-use right and the house shall be registered in accordance with the provisions of this Chapter.
Article 62 Where a department of the local people's government at or above the county level is in charge of both housing administration and land administration as determined by the people's government of the relevant province, autonomous region or municipality directly under the Central Government, such department may make and issue the uniform certificate of the ownership of real estate, in which the confirmation and modification of the ownership of houses and the land-use right of the house site shall be recorded respectively in accordance with the provisions of Article 60 of this Law.
Chapter VI Legal Liability
Article 63 Where anyone, in violation of the provisions of Article 10 or Article 11 of this Law, approves without authorization the granting of land-use right or grants land-use right without due approval for development of real estate, the person who is held responsible shall be given an administrative sanction by an organ at a higher level or by the unit to which he belongs.
Article 64 Whoever, in violation of the provisions of Article 29 of this Law, engages in business of real estate development without obtaining a business license shall be ordered to stop activities of real estate development and confiscated of his unlawful proceeds and may be concurrently imposed a fine by the administrative department for industry and commerce under the people's government at or above the county level.
Article 65 Whoever, in violation of the provisions of paragraph 1 of Article 38 of this Law, transfers the land-use right shall be confiscated of his unlawful proceeds and may be concurrently imposed a fine by the department of land administration under the people's government at or above the county level.
Article 66 Whoever, in violation of the provisions of paragraph 1 of Article 39 of this Law, transfers real estate shall be ordered to pay the fees for the granting of the land-use right, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the department of land administration under the people's government at or above the county level.
Article 67 Whoever, in violation of the provisions of paragraph 1 of Article 44 of this Law, pre-sells commercial houses shall be ordered to stop activities of presale, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the department of housing administration under the people's government at or above the county level.
Article 68 Whoever, in violation of the provisions of Article 57 of this Law, engages in intermediary services for real estate business without obtaining a business license shall be ordered to stop activities of intermediary services for real estate business, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the administrative department for industry and commerce under the people's government at or above the county level.
Article 69 Whoever collects fees from a real estate development enterprise without the basis of laws, rules and regulations shall be ordered by the organ at a higher level to return the fees thus collected; if the circumstances are serious,the person who is held directly responsible shall be given an administrative sanction by the organ at a higher level or by the unit to which he belongs.
Article 70 Where functionaries of departments of housing administration or land administration commit negligence of duty or abuse of power and the case constitutes a crime, they shall be investigated for criminal responsibilities in accordance with the law; if the case does not constitute a crime, they shall be given administrative sanctions.
Where functionaries of departments of housing administration or land administration take advantage of their functions and powers to extort money or properties from others or to illegally receive money or properties from others, thus seeking gains for others, and the case constitutes a crime, they shall be investigated for criminal responsibilities in accordance with the supplementary provisions on punishing crimes of embezzlement and bribery; if the case does not constitute a crime, they shall be given administrative sanctions.
Chapter VII Supplementary Provisions
Article 71 Obtaining the land-use right for development of real estate, engaging in development of real estate and transaction of real estate, and exercising administration of real estate in the State-owned land outside of a planned urban district shall be carried out by making reference to this Law.
Article 72 This Law shall enter into force as of January 1,1995.
Promulgated by The Standing Committee of the National People's Congress on 1994-7-5