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Measures of the Shenzhen Special Economic Zone
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on Realty Appraisal Administration
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(Promulgated
by the Shenzhen Municipal People' s Government |
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on
January 19, 1991, and promulgated after revision on January 29,
1994) |
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Chapter I General
Provision
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Article 1 In order to
strengthen the administration of the prices of the realty market
of the Shenzhen Special
Economic Zone (hereinafter referred to
as the Special Zone), these measures are hereby formulated in
accordance with the related rules of the state and in the light
of the specific conditions of the Special
Zone. |
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Article 2 The
realty referred to in these measures shall mean house property
and landed estate; realty appraisal
shall mean the evaluation
and determination of the value, price, and rent of house
property and
landed estate. |
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Article 3 Practicing
realty appraisal as a business shall follow the principle of
justice and impartiality,
seeking truth from facts, and
reasonable calculation of prices. |
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Article 4 The
Shenzhen Municipal Bureau of Planning and Land shall be the
responsible administrative department
for realty appraisal
(hereinafter referred to as the responsible department). The
Shenzhen Municipal
Agency of Realty Appraisal (hereinafter
referred to as the municipal appraisal agency) shall be the
functional institution for realty appraisal. The appraisal
letters of realty price, realty appraisal reports,
mediation
papers of realty price, and award notices on realty price
dispute issued by this agency
in accordance with these measures
shall be taken as the basis for determining the realty value. |
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Chapter II Municipal
Realty Appraisal Agency
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Article 5 The duties of the
municipal appraisal agency shall be as follows: |
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(1)
to evaluate and determine the market value of various
realties for transferring, leasing, and mortgaging; |
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(2)
to handle the appraisals prescribed in the standards of
real estate administration, issue appraisal letters of realty
price or rent; |
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(3)
to accept the delegated authority to make an appraisal of
the realty related to requisition, repossession of land,
issue a
realty appraisal report; |
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(4)
to forecast the real estate market, do research in the
relationship of the change of market prices with the realty
prices, release the indexes of realty appraisal, rent, and
construction cost, and direct the other
service agencies for
realty appraisal in their work; |
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(5)
to mediate and arbitrate the disputes over various realty
prices and rents, issue mediation papers of realty price,
award
notices on realty price disputes; |
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(6)
to be responsible for professional administration of
service agencies for realty appraisal; |
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(7)
to provide the other services for realty appraisal. |
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Article 6 Only
those appraisal documents issued or confirmed through |
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examination
by the municipal appraisal agency shall be taken as the valid
documents for the following
items of realty appraisal: |
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(1)
those involving the compensation for land requisition,
repossession by the state and the related demolition; |
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(2)
the related base prices, announced prices of the real
estates in this city; |
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(3)
the appraisal of the realty mortgaged to a national
specialized bank. |
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Article 7 When
making a realty appraisal, the staff members of the municipal |
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appraisal
agency shall have the right to look up the budgets and final
accounts of buildings or
structures, written contracts, working
drawings, memos of agreement on bank loans; have the right to
look up the related financial accounting materials and
documents, to investigate and examine the business
sites and
facilities, and the related units, individuals shall give
assistance. |
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Article 8 The
realty prices and rent rates determined through appraisal made
by the municipal appraisal agency
and the other service agencies
for realty appraisal which have been examined and approved by
the
municipal appraisal agency shall be taken as the basis for
the related administrative departments to register, tax,
and
charge the related administration fees; the realty prices and
rents accepted after mediation
or decided through arbitration in
accordance with these measures shall be binding on the parties
concerned. |
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Article 9 The
documents of realty appraisal issued by the municipal appraisal
agency shall be signed by the
head of the agency. |
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Chapter III Service
Agencies for Realty Appraisal
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Article 10 Service agencies
for realty appraisal may be set up within the Special Zone to
provide services
of value appraisal and consulting. |
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Article 11 The
following requirements shall be satisfied to apply for opening a
service agency for realty appraisal: |
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(1)
to have the articles of a service agency for realty
appraisal; |
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(2)
to have more than 3 professionals in realty appraisal; |
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(3)
to have a regular site for service; |
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(4)
to have equity capital of more than 30,000 RMB; |
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(5)
to have a sound financial system. |
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Article 12 The
following items shall be made clear in the articles of a service |
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agency
for realty appraisal: |
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(1)
the name and address of the agency; |
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(2)
the goals; |
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(3)
the economic nature; |
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(4)
the sum of registered capital; |
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(5)
the scope of business and the way of doing business; |
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(6)
the institutional framework and the name of the legal
representative; |
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(7)
the method of distribution |
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Article 13 The
professionals in realty appraisal shall be those who hold |
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professional
qualification certificates for the specialty of proximate and
budgetary estimates in
construction, have more than 2 years of
experience in realty appraisal, and be granted the certificates
of professional qualifications for appraisal by the responsible
department after passing the exams. |
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Article 14 The
establishment of a service agency for realty appraisal shall be
examined and approved by the
municipal department of planning
and land, and then the approval document shall be brought to the
municipal departments of industry and commerce administration to
apply for registration. The business scope of
a service agency
for realty appraisal shall be set by the responsible department
according to the
agency' s technical capacity, and its work
shall accept the supervision and inspection of the municipal
appraisal agency. |
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Article 15 The
documents concerning realty appraisal issued by a service agency
for realty appraisal shall
be jointly signed by a professional
holding the certificate of professional qualifications for
realty appraisal with the agency' s legal representative, and
the official seal of the service agency for realty
appraisal
shall be affixed in addition. |
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Chapter IV Procedure of
Realty Appraisal
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Article 16 When entrusting
the municipal appraisal agency or a service agency for realty
appraisal with realty
appraisal, the party concerned shall sign
an entrustment contract. The contents of the contract shall
include: the subject matter, the contents of appraisal,
expenses, and remuneration. |
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Article 17 The
entrusting party shall provide the related documents, drawings,
or certificates at the request
of the municipal appraisal agency
or service agency for realty appraisal. If the real estate under
appraisal which has been entrusted with is not the property owned by the entrusting party, the party
shall provide a certificate that the owner agree to
have
appraisal. |
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Article 18 The
municipal appraisal agency or a service agency for realty
appraisal shall appraise the subject
matter according to the
contract, issue the appraisal letters of realty price or realty
appraisal
report to the entrusting party. |
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Article 19 When
believing that a realty appraiser has conflict of interests with
the case, the enterprising
party shall have the right to
challenge the appraiser. |
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Article 20 If
the entrusting party has refused to accept the result of
appraisal made by the municipal appraisal
agency or service
agency for realty appraisal, questions may be raised within 5
days from the date
of receiving the appraisal letters of realty
price or realty appraisal report, and the municipal appraisal
agency or service agency for realty appraisal shall make an
examination and appraisal again according
to the entrusting
party' s questions. |
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Chapter V Procedure of
Mediation and Arbitration of Realty Price Disputes
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Article 21 An
written application shall be submitted to the municipal
appraisal agency to apply for mediation
or arbitration of realty
price (including rent) disputes, and the following items shall
be made
clear in the written application: |
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(1)
the name, address of the complainant, the name, position
of the legal representative; |
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(2)
the name, address of the respondent, the name, position
of the legal representative; |
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(3)
the reason and demands of application; |
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(4)
the certificate of ownership and the related engineering
drawings, budgetary and final accounting documents, etc. |
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Article 22 Within
5 days from the date of receiving an application, the municipal |
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appraisal
agency shall make a decision whether to accept the case and
notify the complainant in
writing. |
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The municipal appraisal agency shall send a copy of the
application to the respondent within 5 days from the date
of
accepting the case, and the respondent shall submit a statement
of defense within 7 days from
the date of receiving the copy of
application. |
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Article 23 When
mediators come to do on-the-spot investigation, the parties
concerned and the related persons
shall be notified to be
present, and the related units may be invited to send people to
give assistance
if it is necessary. The time, place, and
conclusion of the investigation shall be made clear in the
investigation record, and the persons doing the investigation
shall sign and seal the record. |
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Article 24 When
dealing with the cases of disputes over realty prices, the
municipal appraisal agency shall,
on the basis of finding out
facts and clarifying responsibilities, go for mediation first,
urge
the parties concerned to understand each other and reach an
agreement. Both parties shall reach an agreement through
mediation voluntarily and may not be forced to do so. The
contents of the agreement may not violate
law, regulations,
rules, and policies, and may not damage the public interests and
other people'
s interests. |
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Article 25 In
case of reaching an agreement through mediation, a mediation
paper shall be worked out to record
clearly the names of the
parties concerned, the main facts and responsibilities of the
dispute,
the contents of the agreement, and the cost bearing,
etc. The mediation paper shall be signed by the parties
concerned and mediators, and affixed with the seal of the
municipal appraisal agency in addition. |
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Article 26 After
receiving the mediation paper, both parties concerned shall
implement it voluntarily. If an
agreement has not been reached
in mediation or before receiving the mediation paper one party
or
both parties have backed out, one party or both parties
concerned may apply to the municipal appraisal agency for
arbitration. |
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Article 27 If
arbitrators believe they are not appropriate to deal with the
case, they shall withdraw themselves;
in case of finding out
that arbitrators have conflict of interest with the case, the
party concerned
shall have the right to challenge them orally or
in writing. The decision on challenge in arbitration shall be
made by the head of the municipal appraisal agency. |
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Article 28 Before
arbitration, the parties concerned shall be notified in writing
of the time, place of arbitration.
If the party concerned has
refused to attend the meeting without justification after being
twice
notified, arbitration by default may take place. |
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Article 29 The
following shall be made clear in an award of arbitration: |
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(1)
the names, addresses of the complainant and respondent,
the names, positions of their representatives or agents; |
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(2)
the reason for application, the facts in dispute, and
demands; |
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(3)
the factual reasons and the law applicable which are held
by the award; |
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(4)
the findings of arbitration and the arbitration cost
bearing; |
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(5)
the time for the award to take effect. |
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The
award of arbitration shall be signed by arbitrators and affixed
with the seal of |
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the
municipal appraisal agency in addition. |
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Article 30 If
the party concerned has refused to accept the award made by the
municipal appraisal agency, legal
action may be taken at the
people' s court within 15 days from the date of receiving the
award
notice. |
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Chapter VI Realty
Appraisers
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Article 31 When performing
duties, realty appraisers shall abide by the law, regulations,
and rules of the
state, scrupulously follow the principle of
justice, objectivity, and seeking truth from facts. They shall
be responsible for the accuracy, justice, and reasonableness of
the realty appraisal certificates issued
by them. |
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Article 32 Realty
appraisers shall respect the wish of the party concerned and
keep the materials obtained
and learned from doing professional
work secret. |
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Article 33 When
engaging in appraisal of a real estate, a realty appraiser shall
not acquire this real estate
or gain other unlawful profits. |
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Article 34 If
an applier or other parties concerned have given false or
improper evidence, realty appraisers
shall reject the evidence
in performing their official duties. |
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Article 35 If
any appraiser has violated work ethics and caused adverse
consequences, an administrative sanction
shall be imposed
according to how serious the circumstances are; if the economic
loss has been
caused to the party concerned, the appraiser shall
be held liable for compensation. |
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Chapter VII Fees Charged
for Appraisal as a Business
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Article 36 Service fees may
be charged for realty appraisal, the standards to collect such
fees shall be determined
according to the sum of the realty
value resulting from the appraisal; the maximum service fee
shall be 0.6% of the sum of the realty value if this value is
less than 1 million RMB (including 1 million RMB),
0.25% if this
value is more than 1 million but less than 10 million RMB
(including 10 million RMB),
0.08% if this value is more than 10
million but less than 50 million RMB (including 50 million RMB),
0.05% if this value is more than 50 million but less than 100
million RMB (including 100 million RMB), 0.01%
if this value is
more than 100 million RMB. |
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Article 37 Administration
fees may be charged for mediation and arbitration of realty
price disputes according
to the following standards: |
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The administrations fee shall be 0.05% of the sum of the
realty value if this value is less than 1 million RMB (including
1 million), 0.03% if this value is more than 1 million but less
than 10 million RMB (including
10 Million RMB), 0.01% if this
value is more than 10 million RMB. |
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The parties concerned from Hong Kong, Macao, or foreign
countries shall pay foreign currencies. |
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If a sum of a realty value is in dispute, the sum
demanded by the applier shall be taken as the standard, if there
is a difference between the demanded sum and the actual sum, the
actual sum shall be taken as the
standard. |
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Article 38 The
administration fee for mediation or arbitration shall be paid in
advance by the applier, born
by the losing party after the case
has been settled, and divided proportionately if the case has
ended in partial defeat. |
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Chapter VIII
Supplementary Provision
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Article 39 These
measures shall take effect as of the date of promulgation, the
Baoan District and the Longgang
District shall refer to them in
implementation. |
