AsianLII [Home] [Databases] [WorldLII] [Search] [Feedback]

Laws of the People's Republic of China

You are here:  AsianLII >> Databases >> Laws of the People's Republic of China >> REGULATIONS ON URBAN REAL ESTATE DEVELOPMENT AND MANAGEMENT CONTROL

[Database Search] [Name Search] [Noteup] [Help]


REGULATIONS ON URBAN REAL ESTATE DEVELOPMENT AND MANAGEMENT CONTROL

Category  URBAN AND RURAL CONSTRUCTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-07-20 Effective Date  1998-07-20  

Regulations on Urban Real Estate Development and Management Control



Chapter I  General Provisions
Chapter II  Real Estate Development Enterprises
Chapter III  Real Estate Development and Construction
Chapter IV  Real Estate Management
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 248 of the State Council of the People's

Republic of China on July 20, 1998)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with the
relevant provisions of the <People's Republic of China>> with a view to standardizing real estate
development and management acts, strengthening the supervision and
administration over urban real estate development and management
activities and promoting and ensuring the sound development of the real
estate industry.

    Article 2  The real estate development and management referred to in
these Regulations means acts of infrastructure construction and housing
construction carried out by real estate development enterprises on
state-owned land within urban planning zones, and those of transfer of real
estate development projects or sale and rental of commodity housing.

    Article 3  Real estate development and management should practise
overall planning, rational distribution(layout), integrated development
and matching construction in pursuance of the principle of unification of economic benefits, social benefits and environmental benefits.

    Article 4  The competent department of construction administration
under the State Council shall be responsible for the work of superviion
and administration of real estate development and management activities
nationwide.

    The competent departments of real estate development of local people's
governments at and above the county level shall be responsible for the work
of supervision and administration of real estate development and management
activities within their respective areas.

    The departments in charge of land administration of people's governments
at and above the county level shall, in pursuance of the provisions of the
relevant laws and administrative regulations, be responsible for the land
administration related to real estate development and management.
Chapter II  Real Estate Development Enterprises

    Article 5  Establishment of a real estate development enterprise shall,
in addition to compliance with the conditions for enterprise establishment
prescribed by relevant laws and administrative regulations, fulfil the
following conditions:

    (1)has a registered capital of over RMB 1 million Yuan; and

    (2)has more than 4 full-time technical personnel with certificates of qualifications of real estate speciality and construction engineering
speciality and more than 2 full-time accountants with certificates of qualifications.

    People's governments of the provinces, autonomous regions and
municipalities directly under the Central Government may, in the light
of the actual conditions prevailing in their respective localities, work
out provisions for the conditions of registered capital and specialized
technical personnel for the establishment of a real estate development
enterprise higher than those in the preceding paragraph.

    Article 6  Establishment of a real estate development enterprise by
foreign business investment shall, in addition to compliance with the
provisions of Article 5 of these Regulations, go through relevant
formalities of examination and approval in pursuance of the provisions
of laws and administrative regulations on foreign business invested
enterprises.

    Article 7  For the establishment of a real estate development enterprise,
an application for registration should be filed at the department of industry
and commerce administration of the people's government at or above the
county level. The department of industry and commerce administration should,
within 30 days starting from the date of receipt of an application, enter
into registration the application of which is in line with the conditions
prescribed in Article 5 of these Regulations; reasons should be explained
in the case of an application not in line with the conditions is not to be
entered into registration.

    The department of industry and commerce administration should, in
examining an application for registration for the establishment of a real
estate development enterprise, seek the views of the competent department
of real estate development at the corresponding level.

    Article 8  A real estate development enterprise should, within 30 days
starting from the date of obtainment of the business license, go to the
competent department of real estate development of the locality wherein
the registration organ is located with the following documents for the
record:

    (1)a photocopy of the business license;

    (2)articles of association of the enterprise;

    (3)certificate of capital attestation;

    (4)certificate of the identity of the legal representative of the
enterprise; and

    (5)certificates of qualifications and employment contracts of specialized
technical personnel.

    Article 9  The competent department of real estate development should,
on the basis of the assets, specialized technical personnel and development
and management achievements, verify the human quality grade of a real
estate development enterprise put on record. The real estate development
entrprise should, in accordance with the verified human quality grade,
undertake corresponding real estate development projects. Specific
measures shall be formulated by the competent department of construction
administration under the State Council.
Chapter III  Real Estate Development and Construction

    Article 10  Determination of a real estate development project should
meet the requirements of overall planning for land utilization, annual plan
for construction land use and urban planning and annual plan for real
estate development; where approval by the competent department of planning is
necessitated pursuant to relevant state provisions, it should be submitted
to the competent department of planning for approval and included in the
annual fixed asset investment plan.

    Article 11  Determination of a real estate development project should
adhere to the principle of integration of reconstruction of old districts
and construction of new districts, with emphasis on the development of areas
where there are weak infrastructure, traffic congestion, serious
environmental pollution and concentration of dangerous and dilapidated
houses, protection and improvement of urban ecological environment and
protection of historic and cultural heritage.

    Article 12  Land for real estate development should be acquired in
the form of transfer; however, where the form of approriation may be adopted
under provisions of law and the State Council is excluded.

    The competent departments of urban planning administration and the
competent departments of real estate development of local people's governments
at or above the county level should, prior to the transfer or appropriation
of land use right, put forth views in writing on the following matters as
one of the basis of transfer or appropriation of land use right:

    (1)nature, scale and duration of development of a real estate
development project;

    (2)urban planning design criteria;

    (3)construction requirements for infrastructure and public facilities;

    (4)property rights definition upon completion of infrastructure; and

    (5)requirements for dismantling and moving compensation and
resettlement related to the project.

    Article 13  The system of capital fund should be established for a
real estate development project, the percentage of capital fund in the
total investment of a project shall not be less than 20%.

    Article 14  Overall planning and arrangement for matching infrastructure
should be made in the development and construction of a real estate
development project, and it should be carried out in accordance with
the principle of first the underground and then on the ground.

    Article 15   A real estate development enterprise should, in accordance
with the land use and duration of construction and development agreed on in
the contract of land use right transfer, proceed with project development
and construction. Where construction and development have not started on
expiry of one year of the duration of start of construction and development
agreed on in the contract of transfer, an idle land fee equivalent to less
than 20% of the land use right transfer money may be levied and
collected; where construction and development have not started on
expiry of two years, land use right may be withdrawn without compensation.
However, where delay in the start of construction is caused by force majeure
or acts of government and departments concerned of government or first-phase
work indispensable for the start of construction and development is excluded.

    Article 16  A real estate project the development and construction of which is undertaken by a real estate development enterprise should conform
to the provisions of relevant laws and regulations and technical
specifications of construction project quality, safety standards,
construction project survey, design and construction as well as
the agreement in the contract.

    A real estate development enterprise should bear responsibility for the
quality of the real estate development project the development and
construction of which it has undertaken.

    Survey, design, construction and supervision units should, pursuant to
the provisions of relevant laws and regulations or agreement in the contract,
bear corresponding responsibility.

    Article 17  A real estate development project may be delivered for use
only on passing the acceptance checks on its completion; where a project
has not undergone acceptance checks or has failed to pass the acceptance
checks, it shall not be delivered for use.

    A real estate development enterprise should, upon completion of a
real estate development project, file an application for acceptance checks
on completion of construction at the competent department of real estate
development of local people's government at or above the county level of the locality wherein the project is located. The competent department of real estate development should, within 30 days starting from the date of receipt of the application for acceptance checks on completion of
construction, organize the departments or units concerned of project
quality supervision, planning, fire prevention and people's air defense
to carry out acceptance checks on contents involving public security.

    Article 18  Comprehensive acceptance checks should be carried out for
cluster real estate development projects like residential areas on completion
pursuant to the provisions of Article 17 of these Regulations and the
following requirements:

    (1)the state of implementation of the design criteria of urban planning;

    (2)the state of construction of matching infrastructure and public
facilities as required by urban planning;

    (3)the state of acceptance checks of project quality of single projects;

    (4)the state of implementation of schemes of dismantling, moving and
resettlement; and

    (5)the state of implementation of property management.

    Where a cluster real estate development project like a residential area
the development of which is undertaken in phases, acceptance checkss may be
carried out in phases.

    Article 19  A real estate development enterprise should record the
major particulars in the process of construction of the real estate
development project in the manuals of real estate development project
and despatch them to the competent department of real estate development
at regular intervals for the record.
Chapter IV  Real Estate Management

    Article 20  Transfer of a real estate development project should
conform to the conditions prescribed in Articles 38 and 39 of the
<>.

    Article 21  For the transfer of a real estate development project,
the tranferor and the transferee should, within 30 days starting from
the date of completion of the formalities of the change in registration
of land use right, go to the competent department of real estate development
with the contract on the transfer of the real estate development project
for the record.

    Article 22  When transferring a real estate development project, a
real estate development enterprise has not completed compensated
resettlement for dismantling and moving, the related rights and
obligations contained in the original contract of compensated resettlement
for dismantling and moving shall be tranferred to the tranferee. The
tranferor of the project should notify the person whose house is to
be dismantled and who is to move in writing.

    Article 23  Sale in advance of commodity housing by a real estate
development enterprise should meet the following conditions:

    (1)total amount of land use right tranfer money has been paid and
certificate of land use right obtained;

    (2)it holds a permit of construction project planning and a construction
permit;

    (3)input of capital for development and construction reaches over 25% of the total investment in project construction on the basis of calculation of the sale in advance of commodity housing provided, and construction progress
and dates of completion of construction and delivery have been determined;
and

    (4)registration for sale in advance has been completed with the
obtainment of permit for sale in advance of commodity housing.

    Article 24  A real estate development enterprise that applies for the
registration for the sale in advance of commodity housing should present
the following documents:

    (1)certification materials prescribed in Sections (1) to (3) of Article
23 of these Regulations;

    (2)business license and certificate of human quality grade;

    (3)the project construction contract;

    (4)floor chart of commodity housing for sale in advance; and

    (5)proposal for sale in advance of the commodity housing.

    Article 25  The competent department of real estate development should,
within 10 days starting from the date of receipt of an application for the
sale in advance of commodity housing, make a reply agreeing to the sale in
advance or not agreeing to the sale in advance. Where approval for the sale
in advance has been granted, a license for the sale in advance of commodity
housing should be issued; reasons should be explained for non-approval of the sale in advance.

    Article 26  No real estate development enterprise shall carry false
advertisement and publicity, advertisement for the sale in advance of commodity housing should carry the number of the license for the sale in
advance of commodity housing.

    Article 27  A real estate development enterprise should, in selling
in advance of commodity housing, show the purchaser in advance the license
for the sale in advance of commodity housing.

    A real estate development enterprise should, within 30 daya starting
from the date of signing of the contract on the sale in advance of the
commodity housing, go to the competent department of real estate development
and the department in charge of land administration of the people's
government at or above the county level of the locality wherein the commodity
housing is located for the record.

    Article 28  The parties interested should sign a written contract for
the sale of commodity housing. The contract should carry the construction
area and floor area of commodity housing, price, date of delivery, quality
requirements, mode of property management as well as liabilities of both
parties in the event of violation of the contract.

    Article 29  A real estate development enterprise that entrusts an
intermediary agency for the sale of commodity housing should issue a
letter of authority to the intermediary agency. The intermediary agency
should, when selling commodity housing, show the purchaser of commodity
housing relevant certificate of the commodity housing and the letter of authority for the sale of commodity housing.

    Article 30  Transfer of a real estate development project and sales price
of commodity housing shall be decided upon through consultation by the
parties interested; however, the price of residental housing enjoying
preferential policy of the state should follow the government guiding
price or government set price.

    Article 31  A real estate development enterprise should, when delivering
the commodity housing for use, provide the purchaser with the residence
quality guaranty and instructions for residence use.

    Residence quality guaranty should list such contents as the quality
grade, scope of maintenance and repair, duration of maintenance and repair
and maintenance and repair unit as verified and inspected by the project
quality supervision unit. The real estate development enterprise should,
pursuant to the agreement in the residence quality guaranty, undertake the
responsibility of maintenance and repair of commodity housing.

    Where loss to the purchaser has been caused due to the maintenance and
repair of commodity housing by the real estate development enterprise
reaulting in adverse impact on the original function of the house within
the duration of maintenance and repair, the enterprise should bear the
liability of compensation in accordance with law.

    Article 32  A purchaser may apply to a project quality supervision
unit for re-verification and re-inspection upon the delivery for use of commodity housing if he/she deems the quality of its main body structure
is not up to the standards. The purchaser has the right to return the
house when the quality of its main body structure is found not up to
the standards upon verification and inspection; where loss has been
caused to the purchaser, the real estate development enterprise should
bear the liability of compensation in accordance with law.

    Article 33  A purchaser of commodity housing for sale in advance should,
within 90 days starting from the date of delivery for use of commodity
housing, go through the formalities of change in registration of land use
right and registration of housing ownership; a purchaser of commodity
housing for cash sale should, within 90 days starting from the date of signing of the sale contract, go through the formalities of change in
registration of land use right and registration of housing ownership.
The real estate development enterprise should assist the purchaser of commodity housing in going through the formalities of change in registration
of land use right and registration of housing ownership and provide
necessary certification decuments.
Chapter V  Legal Liability

    Article 34  Whoever engages in real estate development and management
on his/her own without the obtainment of a business license in violation of the provisions of these Regulations shall be ordered by the department of industry and commerce administration of people's government at or above the
county level to stop such real estate development and management activities,
confisticated of the illegal gains, and may concurrently by imposed a fine
less than five times of the illegal gains.

    Article 35  Whoever engages in real estate development and management
without the obtainment of the human quality grade certificate or beyond the
human quality grade in violation of the provisions of these Regulations
shall be ordered by the competent department of real estate development
of people's government at or above the county level to make a rectification
within the specified time period, and imposed a fine of more than RMB 50000
Yuan less than RMB 100000 Yuan; where no rectification has been made on
expiry of the specified time period, the department of industry and commerce
administration shall revoke the business license.

    Article 36  Whoever effects delivery for use of housing without going
through acceptance checks in violation of the provisions of these Regulations
shall be ordered by the competent department of real estate development of people's government at or above the county level to go through
retrospectively the formalities of acceptance checks within the specified
time period; where no formalities of acceptance checks have been completed
retrospectively on expiry of the specified time period, the competent
department of real estate development of people's government at or above the
county level shall organize the departments and units concerned to conduct
acceptance checks, and impose a fine of more than RMB 100000 Yuan less than
RMB 300000 Yuan. The housing found to be not up to the standards upon
acceptance checks shall be handled pursuant to the provisions of Article 37
of these Regulations.

    Article 37  Whoever effects delivery for use of housing found to be
not up to the standards in acceptance checks in violation of the provisions
of these Regulations shall be ordered by the competent department of real
estate development of people's government at or above the county level to
make repairs within the specified time period, and concurrently imposed a
fine of less than 2% of the total cost of the housing delivered for use;
where the circumstances are serious, the department of industry and commerce
administration shall revoke the business license; where loss to the purchaser
has been caused, liability for compensation should be borne in accordance
with law; where a major accident of casualties has taken place or other
serious consequences constituting a crime, criminal liability shall be
investigated in accordance with law.

    Article 38  Whoever transfers a real estate development project on his/
her own in violation of the provisions of these Regulations shall be ordered
by the department in charge of land administration of people's government
at or above the county level to stop the illegal act, confisticated of the
illegal gains, and may concurrently be imposed a fine of less than five times
of the illegal gains.

    Article 39  Whoever effects sale in advance of commodity housing on
his/her own in violation of the provisions of these Regulations shall be
ordered by the competent department of real estate development of people's
government at or above the county level to stop such illegal acts,
confisticated of the illegal gains, and may concurrently be imposed a
fine of less than 1% of down payment collected.

    Article 40  Functionaries of state organs that neglect their duties,
indulge in malpractises for selfish gains and abuse their power constituting
a crime in the work of supervision and administration of real estate
development and management shall be investigated of criminal liability
in accordance with law; where a crime has not been constituted,
administrative sanctions shall be imposed in accordance with law.
Chapter VI  Supplementary Provisions

    Article 41  Reference to these Regulations shall be made in
implementation of supervision and administration of real estate development
and management on real estate development and management on state-owned
land outside the urgan planning zones.

    Article 42  Collectively owned land within urban planning zones may be
used for real estate development and management only upon requisition and
turning into state-owned land.

    Article 43  These Regulations shall enter into force as of the date of promulgation.



AsianLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.asianlii.org/cn/legis/cen/laws/rouredamc613