Sunkia

What the law says

In China, capital or domestic or foreign companies
Companies can own land outright, rather than land use
Rights. There are two types of land use rights – Allocation and
Granted. Compared to common law concepts of the West
Allocation of land use rights are somehow similar
Leases and land use rights granted in some aspects
similar to the succession of life.

Allocate rights of land use are generally provided bythe
Government for an indefinite period (usually state
People) and can not be obliged, pledged, leased or
transferred by the user. Moreover, land can be allocated
recovered by the government at any time.

Allocation of land rights by the government provided
Back for the payment of subsidies, and make promises,
Mortgages, leasing, and transfer over time of fellowship.
The village is granted for a specified period – usually 70 yearsfor
Residential, industrial for 50 years and 40 years for
commercial use, and more. The mandate is renewable in theory
(Even if no foreign investor in China long enough
How it works in practice). Unlike the usual case
Western countries should be granted for specific
Purpose for which it was granted.

Allocation of land use rights can be converted to grant land
use rights on payment of a fee in favor ofGovernment.
Also be granted rights of use of land subject to expropriation by
Government in exceptional cases (in exchange for
similar to compensation only in the power of eminent domain
USA). This situation is rather the work
Country foreign investor – in favor of enterprises with foreign investment
rarely is expropriated, but agricultural land is often
expropriated to make way for foreign investment
Projects.

Since the law applies toCompanies with foreign capital

Most joint ventures abroad to obtain land use rights
the Chinese side. A common problem is that the Chinese
Party reserves the right to land allocated to land
plays (after research, that if China is a
Governmental Authority). In this case, the authorization to transfer
rights to use land to local government property
Bureau, and China has no right
Transfer toJoint Venture.

However, if the joint venture to acquire long-term
Allocate land use rights of the Bureau of Land Administration
Thanks to an agreement granting land use, the joint venture will be
be able to mortgage the land or transfer to third parties.
Remember, should, however, that vacant land be developed in 25%
may allocate land to buy before any law. Do not try to
Acquire land rights granted to use, if you will not
growing in ashort time, because even if the country
25% developed and is therefore entitled to a grant
can be classified as "void" and can be vacant lots
reimbursed when the development is not started within two years
transfer.

A second option would be to obtain for an investor
Assign rights to land use and lease land for the city
Venture. However, the vacant land will be leased to third
(As a joint venture or other foreign investmentEnterprise)
the recipient. It 'also interesting to note that the lease should
Register To protect against its lease
Potential claims.

Third, if you are willing to accept the allocation of land
Are the rights of foreign invested enterprises may simply
Land assigned to him by the local office of the provincial administration.

In the case of a joint venture, a fourth option would be to
China is concerned the use of landRights
the joint venture as part of their capital contribution in
would, in this case the Chinese responsible for the annual property tax
User.

Another common problem is that the land and building (s)
Are held by different parties, resulting in a disordered potential
legal situation where all parties are unwilling to cooperate.

the question is even more important, would be a good idea,
China State the right to land use with the test
DocumentaryThe first test of a project approval.
Also, before the transfer of due diligence is a thorough
Self-Assessment of environmental impact (see Glossary for
Details). Finally, note that the payment and transfer of
"Title" with the public filings with the Earth
Office Administration may take place simultaneously –
Registration of land transfers will not be permitted if
Payment must be submitted for registrationTransfer
Application.