The Wuquan Fa - China's Property Law

[Randy W]

I pulled this from the thread on Jiaying's building into a separate topic for reference

 

Even in an urban zone, a 70 year lease is on the land, NOT on the building, and is automatically renewed. They can't take your property (either the land in a rural area or the building) without compensating you for it - at least by law. The property laws in China are patterned after those in the West, except that "property" in urban areas is defined as including the building, NOT the land underneath.

 

It seems to me that the 70 year leases on the underlying land are a separate issue entirely from individual home ownership, and the home ownership is not affected by the lease.

 

"Homes"/condominiums/flats/apartments are purchased, owned, inherited, and sold much the same as homes in other countries. This is my own interpretation, as the Property Law does not seem to address this directly.

China's New Property Law (March 16, 2007) - China's New Property Law, Part I -- Introduction

China's New Property Law, Part II -- General Principles
China's New Property Law, Part III -- Rules Of Real Property Ownership
China's New Property Law, Part IV -- Real Property Use Rights

China's property law is known as the Wuquan Fa. What I know of it comes from this article, which, of course, is someone's English-language interpretation of the actual (Chinese) law

 

From the introduction in the China Law Blog article:

 

On March 16, 2007, the National People’s Congress of the PRC adopted the New Property Law (wuquan fa , literally: “Law of the Rights in Things”). For the first time in the legal history of the PRC, this law provides for basic ownership rights in immovables (real property) and movables (personal property).

 

[Randy W]

A newer article in the Library of Congress, which doesn't cover rural property at all, although it doesn't seem like much as changed in the interim from the passage of the Wuquan Fa.

 

China: Real Property Law

Urban residential land has always been regulated differently from residential land in rural areas, which is not discussed in this report.

 

. . .

 

B. Terms for Land-Use Rights

Under the current rules prescribed by the State Council, land may be used for residential purposes for up to seventy years; for industrial purposes for fifty years; for education, science, culture, public health, and physical education purposes for fifty years; and for commercial, tourist, and recreational purposes for forty years.

According to the 2007 Property Rights Law, when the term for the right to use land for residential purposes expires, the term will be automatically renewed. The law does not make it clear, however, whether the state would charge another granting fee at the time of renewal or how the fee would be determined.

C. Private Home Ownership

Individuals can privately own real estate, including residential houses and apartments (i.e., buildings and structures on the land), although not the land on which the houses and apartments are situated. Article 64 of the Property Rights Law provides that “ndividuals are entitled to enjoy ownership of such immovable and movable properties as their lawful incomes, houses, articles for daily use, tools of production, and raw materials.

 

 

 

 

 

 

 

and VERY importantly, this:

 

Although the 2007 Property Rights Law provides for automatic renewal of the term of the rights to use land for residential purposes, such relevant issues as the amount of the new granting fee, if any, and procedure for renewal remain unclear.

 

 

Update (July 13, 2015): On March 1, 2015, the Provisional Regulations on Real Estate Registration went into effect, which aim to establish a nationwide real estate registration system. According to the new Regulations, the Ministry of Land and Resources will guide and supervise the real estate registration system nationwide; local governments at and above the county level will designate real estate registries in their respective jurisdictions. A uniform format for the deed of title will be adopted nationwide.

 

Additional information on this topic is available

 

 

 

My own understanding is that the end of the seventy-year "lease" period WILL NOT AFFECT home ownership, but we'll have to wait and see on that one.

[Greg.D.]

WAIT and see? Ha ha!

 

You know here in the U.S. (and elsewhere) we "own" but we pay an annual tax on the property's appraised value. Sure adds up but kind of works out the same. I guess we like the sound of our deal and you guys there like the sound of your deal. I think.

[Randy W]

WAIT and see? Ha ha!

 

You know here in the U.S. (and elsewhere) we "own" but we pay an annual tax on the property's appraised value. Sure adds up but kind of works out the same. I guess we like the sound of our deal and you guys there like the sound of your deal. I think.

 

We OWN our property also. I like the sound of "no taxes". But it sure makes it easy for someone to just let their property sit indefinitely.

[Randy W]

I'll just pass along this link for anyone who's interested - the China Law Blog is where the English translation of the Wuquan Fa came from

 

 

 

 

 

Do You Like Our New Look, Ten Years On?

 

http://www.chinalawblog.com/2016/06/do-you-like-our-new-look-ten-years-on.html

 

 

- and this on CFL -

 

Dinner for 15,000

15,000 villagers treated to huge banquet by property developers before they move into new high-rises

 

 

Edited June 17, 2018 by Randy W (see edit history)