PRC, Property Rights Law
Ref no: 4110/2007.03.16
(Promulgated by the 5th Session of the 10th National People’s Congress of the People’s Republic of China on 16 March 2007 and effective as of 1 October 2007.) Table of Contents
Part One: General Principles
Chapter One: Basic Principles
Chapter Two: Creation, Variation, Transfer and Extinguishment of Property Rights Section One: Registration of Immovable Property
Section Two: Delivery of Movable Property
Section Three: Other Provisions
Chapter Three: Protection of Property Rights
Part Two: Ownership
Chapter Four: General Provisions
Chapter Five: State Ownership, Collective Ownership and Private Ownership Chapter Six: Owner’s Ownership in a Building
Chapter Seven: Neighbour Relationship
Chapter Eight: Co-ownership
Chapter Nine: Special Provisions on Obtaining Ownership
Part Three: Usufruct
Chapter Ten: General Provisions
Chapter Eleven: Land Contracted Operation Rights
Chapter Twelve: Construction Land Use Rights
Chapter Thirteen: Residential Land Use Rights
Chapter Fourteen: Easement
Part Four: Collateral Rights
Chapter Fifteen: General Provisions
Chapter Sixteen: Mortgage Rights
Section One: General Mortgage Rights
Section Two: Maximum Amount of Mortgage Rights
Chapter Seventeen: Pledge Rights
Section One: Pledge of Movable Property
Section Two: Pledge of Rights
Chapter Eighteen: Lien Rights
Part Five: Possession
Chapter Nineteen: Possession
Supplementary Provisions
PART ONE: GENERAL PRINCIPLES
CHAPTER ONE: BASIC PRINCIPLES
Article 1:This Law is promulgated pursuant to the Constitution for the purposes of safeguarding the basic economic system of the State and the order of the socialist market economy, clarifying property ownership, optimizing property function and protecting the property rights of rights holders.
Article 2: This Law shall apply to civil relationship arising from the ownership and usage of properties.
Properties referred to in this Law shall include immovable property and movable property. Where the law provides for the object of property rights, such provisions shall prevail. Property rights referred to in this Law shall mean the rights to direct control and exclusivity for specific properties enjoyed by a rights holder pursuant to the law and shall include ownership, usufruct and collateral rights.
Article 3: The State upholds the basic economic system comprising the public ownership system as the main entity and common economic development of multiple ownership systems in the preliminary phase of socialism.
The State builds on and develops public ownership economy; encourages, supports and guides the development of non-public ownership economy.
The State practices socialist market economy and protects equal legal status and development rights of all market entities.
Article 4: The property rights of the State, collective parties and private individuals as well as property rights of other rights holders shall be protected by the law and shall not be infringed by any unit or individual.
Article 5: Types and contents of property rights shall be stipulated by the law.
Article 6:The creation, variation, transfer and extinguishment of property rights of immovable property shall be registered pursuant to the provisions of the law. The creation and transfer of property rights of movable property shall be delivered pursuant to the provisions of the law.
Article 7: The obtaining and exercise of property rights shall comply with the law, respect social morals and shall not harm public interest or the legitimate interests of others.
Article 8: Where other relevant laws contain special provisions on property rights, such provisions shall prevail.
CHAPTER TWO: CREATION, VARIATION, TRANSFER AND
EXTINGUISHMENT OF PROPERTY RIGHTS
SECTION ONE: REGISTRATION OF IMMOVABLE PROPERTY
Article 9:Creation, variation, transfer and extinguishment of property rights of immovable property registered pursuant to the law shall be valid; unless otherwise provided by the law, such creation, variation, transfer and extinguishment shall be invalid without registration.
Registration is not required for ownership of natural resources which belong to the State pursuant to the law.
Article 10: Registration of immovable property shall be handled by the registration authority at the location of the immovable property.
The State implements a unified registration system for immovable property. The scope of unified registration, registration authority and registration methods shall be stipulated by the laws and administrative regulations.
Article 11: Parties concerned in an application for registration shall provide the proof of title and requisite materials such as information on boundaries and area of immovable property according to the respective registration matters.
Article 12: The registration authority shall perform the following duties:
1.inspect the proof of title and other requisite materials provided by the applicant;
2.inquire with the applicant in respect of registration matters;
3.register the relevant matters factually and promptly; and
4.other duties stipulated by the laws and administrative regulations.
Where further proof is required for the immovable property under an application for registration, the registration authority may require the applicant to provide supplementary materials and may conduct an onsite inspection where necessary.
Article 13: The registration authority shall not have the following behaviour:
1.require a valuation of the immovable property;
2.conduct repeated registration in the name of annual inspection etc; or
https://www.doczj.com/doc/b04997038.html,mit any other act beyond the scope of registration duties.
Article 14: Where the creation, variation, transfer and extinguishment of property rights of immovable property requires registration pursuant to the provisions of the law, such creation, variation, transfer and extinguishment of property rights shall take effect on the date stated in the register of immovable property.
Article 15: Unless otherwise stipulated by the laws or contractual provisions, a contract entered into between the parties concerned on the creation, variation, transfer or extinguishment of property rights of immovable property shall take effect upon conclusion of the contract; the failure to complete registration of property rights shall not affect the validity of the contract.
Article 16: The register of immovable property is the basis of ownership and contents of property rights. The register of immovable property shall be managed by the registration authority.
Article 17: The title deed of the immovable property is the proof of rights holder’s entitlement to the property rights of the immovable property. The matters recorded in the title deed of the immovable property shall be consistent with those recorded in the register of immovable property; unless there is evidence to prove that there is an error in the register of immovable property, the information in the register of immovable property shall prevail in the event of any inconsistency.
Article 18: Rights holders and interested parties may apply to inspect and make copies of registration information and the registration authority shall facilitate.
Article 19: A rights holder or an interested party that is of the view that the information recorded in the register of immovable property contains an error may apply for correction of the relevant registration information. Where rights holder recorded in the register of immovable property has issued a written consent for correction or there is evidence to prove that the registration information contains an error, the registration authority shall make the due correction.
Where the rights holder recorded in the register of immovable property does not consent to correction, the interested party may apply for registration of an objection. Where the registration authority grants the registration of objection but the applicant does not file a lawsuit within 15 days from the registration of objection, the registration of objection shall become void. Where an inappropriate registration of objection causes the rights holder to suffer damages, the rights holder may seek compensation for damages from the applicant.
Article 20: A party concerned who has entered into an agreement on sale and purchase of housing property or other property rights of immovable property may, for the purpose of ensuring future realization of property rights, apply to the registration authority for pre-registration pursuant to the agreement. Where, following the pre-registration, the immovable property is disposed of without the consent of the rights holder in the pre-registration, the property rights shall be invalid.
Where, following the pre-registration, the creditor’s rights have extinguished or no registration is made within three months from the date of registration of immovable property, the pre-registration shall become void.
Article 21: A party concerned who provides false materials to apply for registration and causes others to suffer damages shall bear compensation liability.
Where an error in registration causes others to suffer damages, the registration authority shall bear compensation liability. Upon making compensation, the registration authority may seek recourse against the party which causes the error in registration.
Article 22:Registration fees for immovable property shall be collected on a per item basis and shall not be based on the area, size or a percentage of the price of the
immovable property. Specific fee rates shall be stipulated by the relevant State Council department jointly with the pricing authority.
SECTION TWO: DELIVERY OF MOVABLE PROPERTY
Article 23: Unless otherwise stipulated by the law, the creation and transfer of property rights of movable property shall take effect upon delivery.
Article 24: The creation, variation, transfer and extinguishment of property rights of vessel, aircraft and automobile etc shall not be contested against a bona fide third party without registration.
Article 25: Where a rights holder has taken possession of a movable property pursuant to the law prior to creation and transfer of property rights of such movable property, the property rights shall take effect upon the coming into effect of the legal act.
Article 26: Where a third party has taken possession of a movable property pursuant to the law prior to creation and transfer of property rights of such movable property, the obligor of delivery may substitute delivery with a transfer of the rights to require the third party to return the original property.
Article 27: Upon transfer of property rights of a movable property and both parties have agreed that the transferor may continue to take possession of such movable property, the property rights shall take effect upon the coming into effect of the agreement.
SECTION THREE: OTHER PROVISIONS
Article 28: Where a l egal document of a People’s Court or an arbitration committee or a requisition decision of a People’s Government etc causes the creation, variation, transfer or extinguishment of property rights, such creation, variation, transfer or extinguishment shall take effect upon the coming into effect of the legal document or requisition decision of a People’s Government etc.
Article 29: Where property rights are obtained as a result of inheritance or legacy, the property rights shall take effect upon the commencement of inheritance or legacy.
Article 30: Creation or extinguishment of property rights attributed to de facto events such as legal construction or demolition of housing property etc shall take effect upon the occurrence of the de facto event.
Article 31: For a disposal of property rights of an immovable property enjoyed pursuant to the provisions of Article 28 to Article 30 hereof which requires registration pursuant to the provisions of the law, the property rights shall be invalid without registration. Article 32: In the event of infringement of property rights, the rights holder may resolve the issue through settlement, mediation, arbitration or litigation.
Article 33: Where there is a dispute over the ownership and contents of property rights, an interested party may request for confirmation of rights.
Article 34: A rights holder may demand a party which has no right to take possession of the immovable property or the movable property to return the original property.
Article 35:Where the property rights are prejudiced[impaired] or may be prejudiced [impaired], the rights holder may request for elimination of the prejudice [impairment] or danger.
Article 36: A rights holder may demand that the party which causes damages to immovable property or movable property to repair, rework, replace or restore the original condition of the property.
Article 37:A rights holder may seek compensation for damages for damages he has suffered from infringement of property rights and may also demand that the infringing party bear other civil liabilities.
Article 38: The measures for protection of property rights stipulated in this Chapter may be used solely or jointly accordingly to the circumstances of infringement of rights.
Infringing party of property rights shall, in addition to bearing civil liabilities, bear administrative liabilities pursuant to the law for violation of administrative provisions; where the case constitutes a criminal offence, criminal liabilities shall be pursued in accordance with the law.
PART TWO: OWNERSHIP
CHAPTER FOUR: GENERAL PROVISIONS
Article 39: An owner shall enjoy the rights of possession, use, seeking benefits and disposal of his own immovable property or movable property pursuant to the law. Article 40: An owner shall have the right to create usufruct rights and collateral rights on his own immovable property or movable property. Exercise of rights by a usufruct rights holder or a collateral rights holder shall not harm the interests of the owner.
Article 41: No unit or individual shall obtain the title of any immovable property or movable property provided by the law to be owned exclusively by the State.
Article 42:Collectively-owned land and housing properties and other immovable properties of units and individuals may be requisitioned pursuant to the authority and procedures stipulated by the law for the needs of public interest.
The adequate amount of land compensation fee, relocation subsidy and compensation for attachments on the ground and young crops etc shall be paid for requisition of
collectively-owned land, social security fees shall be arranged for farmers affected by the land requisition, the livelihood of farmers affected by the land requisition shall be assured and the legitimate rights and interests of farmers affected by the land requisition shall be safeguarded.
Compensation for resettlement shall be made pursuant to the law for requisition of housing properties and other immovable properties of units and individuals, the legitimate rights and interests of the persons affected by the requisition shall be safeguarded; in the case of requisition of residential property of individuals, the living conditions of the persons affected by the requisition shall be assured.
No unit or individual shall attempt corruption, misappropriation, embezzlement, retention, default in payment of compensation fee for requisition etc.
Article 43: The State implements special protection for arable land, strictly restricts the conversion of agricultural land to construction land and controls the total quantity of construction land. Requisition of collectively-owned land in violation of the authority and procedures stipulated by the law shall be prohibited.
Article 44: Immovable property or movable property of units and individuals may be requisitioned pursuant to the authority and procedures stipulated by the law for emergency purposes such as rescue and disaster relief. Such requisitioned immovable property or movable property shall be returned to the persons whose immovable property or movable property is requisitioned after use. Compensation shall be made to such persons if the requisitioned immovable property or movable property is destroyed or lost during or after the requisition.
CHAPTER FIVE: STATE OWNERSHIP, COLLECTIVE OWNERSHIP AND
PRIVATE OWNERSHIP
Article 45: Properties provided by the law to be owned by the State shall belong to the State, i.e. belong to all people.
The State Council shall exercise ownership of State-owned properties on behalf of the State; where the law provides otherwise, such provisions shall prevail.
Article 46: Mines, waterways and sea areas shall belong to the State.
Article 47: Urban land shall belong to the State. Rural land and suburban land provided by the law to be owned by the State shall belong to the State.
Article 48: Unless provided by the law to be collectively-owned, natural resources such as forests, hills, grasslands, barren land and shoals etc shall belong to the State.
Article 49: Wildlife and botanical resources provided by the law to be owned by the State shall belong to the State.
Article 50: Wireless frequency resources shall belong to the State.
Article 51: Cultural heritage provided by the law to be owned by the State shall belong to the State.
Article 52: National defense assets shall belong to the State.
Infrastructure facilities such as railways, highways, electric power facilities, telecommunication facilities and oil and gas pipelines etc which are provided by the law to be owned by the State shall belong to the State.
Article 53: State authorities shall enjoy the rights of possession, use and disposal of immovable property and movable property under their direct control pursuant to the laws and the relevant provisions of the State Council.
Article 54: Institutions established by the State shall enjoy the rights of possession, use, seeking benefits and disposal of immovable property and movable property under their direct control pursuant to the laws and the relevant provisions of the State Council.
Article 55:The State Council and the local People’s Governments shall represent the State respectively in performing the capital contributor’s duties towards enterprises funded by the State pursuant to the laws and administrative regulations and shall enjoy the rights and interests of the capital contributor.
Article 56: All the properties of the State shall be protected by the law and no unit or individual shall attempt to occupy, rob, embezzle, retain or destroy such properties.
Article 57: Organizations performing the duties of administration of and supervision over State-owned properties and the personnel of such organizations shall strengthen administration of and supervision over State-owned properties pursuant to the law, promote the maintenance and appreciation of the value of State-owned properties and prevent loss of State-owned properties; persons guilty of abusing their official powers or dereliction of duties and causing loss of State-owned properties shall bear legal liability pursuant to the law.
Persons who are guilty of causing loss of State-owned properties by low-price transfer, conspired embezzlement, unauthorized guarantee or by any other methods in the process of enterprise restructuring, merger or division or interested party transaction etc which violates the administrative provisions of State-owned properties shall bear legal liability.
Article 58: Collectively-owned immovable property and movable property shall include:
https://www.doczj.com/doc/b04997038.html,nds and forests, ridges, grasslands, wastelands and shoals provided by the law to
be collectively-owned;
2.collectively-owned buildings, manufacturing facilities and agricultural irrigation
facilities;
3.collectively-owned educational, scientific, cultural, sanitary and sports facilities
etc; and
4.other collectively-owned immovable property and movable property.
Article 59:Immovable property and movable property collectively-owned by farmers shall be deemed collectively-owned by members of the collective group.
The following matters shall be decided by the collective members pursuant to the statutory procedures:
https://www.doczj.com/doc/b04997038.html,nd contract scheme and land contracted out to an unit or individual who is not a
member of the collective group;
2.adjustment of contracted land between individual land contract operators;
https://www.doczj.com/doc/b04997038.html,age and distribution methods of land compensation fee and other expenses;
4.changes in ownership in collectively-funded enterprises etc; and
5.any other matters stipulated by the law.
Article 60: Ownership of collectively-owned lands and forests, ridges, grasslands, wastelands and shoals etc shall be exercised as follows:
1.ownership of properties collectively-owned by village farmers shall be exercised
collectively by the village’s collective economic organization or the villagers’ committee;
2.ownership of properties collectively-owned by two or more collective group of
farmers in a village shall be exercised collectively by the respective collective economic organizations or the representatives of villagers’ committee; and
3.properties collectively-owned by rural township farmers shall be exercised
collectively by the representatives of township’s collective economic organizations.
Article 61:For immovable property and movable property collectively-owned by the cities and towns, the collective groups shall enjoy the rights of possession, use, seeking benefits and disposal of such movable property and immovable property pursuant to the provisions of the laws and administrative regulations.
Article 62: Collective economic organizations, villagers’ committees or villagers’ groups shall announce the status of collectively-owned properties to the members of the collective group pursuant to the laws, administrative regulations and the articles of association, village rules or people’s agreement.
Article 63:Collectively-owned properties shall be protected by the law and no unit or individual shall attempt to occupy, rob, embezzle or destroy such properties.
Where the decision made by a collective economic organization, villagers’ committee or its person-in-charge infringes the legitimate rights and interests of the members of the collective group, such members of the collective group may apply to a People’s Court for revocation of the decision.
Article 64: Private persons shall enjoy ownership of immovable property and movable property such as legitimate income, real property, living supplies, manufacturing tools and raw materials etc.
Article 65: Legitimate savings, investments and returns thereon of private persons shall be protected by the law.
The State shall protect the succession rights and other legitimate rights and interests of private persons pursuant to the provisions of the law.
Article 66: Legitimate properties of private persons shall be protected by the law and no unit or individual shall occupy, rob or destroy such properties.
Article 67:The State, collective entities and private persons may contribute capital to incorporate a limited liability company, company limited by shares or any other enterprise. For immovable property or movable property owned by the State, collective entities and private persons which are contributed to the enterprise, the capital contributor shall enjoy the rights to enjoy returns on assets, make major decisions and select business managers etc and shall perform obligations pursuant to the agreement or ratio of capital contribution.
Article 68: Enterprise legal persons shall enjoy the rights of possession, use, seeking benefits and disposal of their own immovable property or movable property pursuant to the laws, administrative regulations and articles of association.
The provisions of the relevant laws, administrative regulations and articles of association shall apply to the rights of legal persons other than enterprise legal persons over their own immovable property and movable property.
Article 69:Immovable property and movable property owned by social organizations pursuant to the law shall be protected by the law.
CHAPTER SIX: OWNER'S OWNERSHIP IN A BUILDING
Article 70: An owner shall enjoy ownership over exclusive areas within a building such as the residential and commercial property etc and shall enjoy the rights of co-ownership and co-management of co-owned areas other than the exclusive areas.
Article 71: An owner shall enjoy the rights of possession, use, seeking benefits and disposal of exclusive areas of the building. The exercise of rights by an owner shall not harm the safety of building or the legitimate rights and interests of other owners.
Article 72: An owner shall enjoy the rights and perform the obligations in respect of co-owned areas other than the exclusive areas of a building and shall not evade performance of such obligations by waiving such rights.
Where an owner transfers his residential or commercial property within a building, the owner’s rights of co-ownership and co-management of co-owned areas shall be transferred together.
Article 73: Roads within the building zone are co-owned by the owners, except for public roads owned by the urban township. Green zones within the building zone are co-owned by the owners, except for public green zones owned by the urban townships or where it is clearly stated to be owned by an individual. Other public premises, public facilities and building space used for estate services within the building zone are co-owned by the owners.
Article 74: Cark park lots and garages within the building zone shall first be applied to satisfy the needs of the owners.
Ownership of car park lots and garages within the building zone shall be agreed between the parties concerned through sale, gift or lease.
Car park lots which occupy roads or other premises co-owned by the owners are co-owned by the owners.
Article 75: Owners may convene owners’ general meetings and elect the owners’ committee.
The relevant departments of local people’s governments shall provide guidance and assistance for convening of owners’ general meetings and election of the owners’ committee.
Article 76: The following matters shall be jointly decided by the owners:
1.the drafting and revision of rules for owners’ general meetings;
2.the drafting and revision of management rules for the building and auxiliary
facilities;
3.election of the owners’ committee or replacement of owners’ committee members;
4.appointment and dismissal of estate services enterprises or other managers;
5.raising and application of maintenance and repair funds for the building and
auxiliary facilities;
6.modification and redevelopment of building and auxiliary facilities; and
7.other significant matters relating to co-ownership and co-management rights. When deciding on a matter stipulated in item (5) or (6) of the preceding paragraph, the consent of two-thirds and above of the owners whose exclusive areas owned by such owners constitute two-thirds and above of the gross area of the building shall be obtained. When deciding on any other matter stipulated in the preceding paragraph, the consent of a simple majority of the owners whose exclusive areas owned by such owners constitute half and above of the gross area of the building shall be obtained.
Article 77: Owners shall not convert residential property to commercial property in violation of the provisions of the laws, regulations and management rules. Where an owner proposes to convert residential property to commercial property, he shall comply with the provisions of the laws, regulations and management rules and obtain the consent of the owner(s) that is/are an interested party in the matter.
Article 78:Decisions of owners’ general meetings or owners’ committees shall be binding upon the owners.
Where a decision made by the owners’ general meeting or owners’ committee harms the legitimate rights and interests of the owners, such owners may apply to a People’s Court for revocation of the decision.
Article 79: The maintenance and repair funds of a building and its auxiliary facilities are co-owned by the owners. Upon a collective decision made by the owners, the maintenance and repair funds may be used for the maintenance of co-owned areas such as the elevators and water tanks etc. The raising and application of maintenance and repair funds shall be announced.
Article 80: The sharing of expenses and distribution of gains etc in respect of a building and its auxiliary facilities etc shall apply with the agreement where available; where there is no agreement or the agreement does not provide specifically, the sharing of expenses and distribution of gains shall be determined in accordance with the ratio of areas of exclusive areas owned by the owners to the gross area of the building.
Article 81: The owners may manage a building and its auxiliary facilities independently or entrust an estate services enterprise or another manager to manage.
The owners shall have the right to replace the estate services enterprise or another manager appointed by the builder pursuant to the law.
Article 82: An estate services enterprise or another manager shall manage the building and its auxiliary facilities within the building zone pursuant to the entrustment of the owners and shall accept supervision of the owners.
Article 83: Owners shall comply with the provisions of the laws, regulations and management rules.
In the event of willful disposal of garbage, discharge of pollutants or noise emission, keeping of animals in violation of provisions, illegal construction, occupation of passageway, refusal of payment of estate maintenance fee and any other act which harms the legitimate rights and interests of others, the owners’ general meeting or owners’ committee shall have the right to demand that the doer stops the harmful act, eliminates danger, removes the impediment or compensates the damages pursuant to the laws, regulations and management rules. The owner shall have the right to file a lawsuit with a People’s Court pursuant to the law against an act which harms his legitimate rights and interests.
CHAPTER SEVEN: NEIGHBOUR RELATIONSHIP
Article 84: A holder of neighbouring rights of an immovable property shall handle neighbour relationship properly pursuant to the principles of facilitating production and living, unity and mutual aid, fairness and reasonableness.
Article 85: The provisions of laws and regulations on handling of neighbour relationship shall be complied with; where there is no such provision in the laws and regulations, local customs may be adopted.
Article 86: The rights holder of an immovable property shall provide the requisite convenience for water supply and drainage to the holders of neighbouring rights.
Utilization of natural water flow shall be distributed reasonably among the holders of neighbouring rights of an immovable property. The discharge of natural water flow shall follow the natural flow direction.
Article 87:Where a holder of neighbouring rights needs to use the land of the rights holder of an immovable property for passage purpose etc, the rights holder of the immovable property shall provide the requisite convenience.
Article 88: Where the rights holder of an immovable property needs to use the neighbouring land for the purpose of construction, repair and laying of power cables, water pipes, heating or fuel gas pipelines etc, the rights holder of such land or building shall provide the requisite convenience.
Article 89:Construction of a building shall not violate the relevant State standards on project construction, obstruct the ventilation, lighting and sunlight exposure of the neighbouring building(s).
Article 90:A rights holder of an immovable property shall not dispose solid waste, discharge air pollutants, water pollutants, emit noise, bright light and electromagnetic radiation and other hazardous substances in violation of the provisions of the State.
Article 91: Where a rights holder of an immovable property excavates land, constructs a building, lays pipelines and installs facilities etc, the safety of neighbouring immovable property shall not be compromised.
Article 92: Where a rights holder of an immovable property needs to use a neighbouring immovable property for the purposes of water supply, drainage, passageway or installation of pipelines etc, he shall endeavour to avoid causing damage to the rights holder of a neighbouring immovable property; compensation shall be made if damage is caused.
CHAPTER EIGHT: CO-OWNERSHIP
Article 93: Immovable property or movable property may be co-owned by two or more units or individuals. Co-ownership shall include tenancy in common and joint tenancy. Article 94: Tenants in common shall enjoy ownership of a co-owned immovable property or movable property according to their share in the immovable property or movable property.
Article 95:Joint tenants shall enjoy ownership of a co-owned immovable property or movable property.
Article 96: Co-owners shall manage co-owned immovable property or movable property according to their agreement; where there is no agreement or the agreement does not provide specifically, each co-owner shall have the rights and obligations of management.
Article 97: For disposal or major repair of a co-owned immovable property or movable property, the consent of tenants in common holding two-thirds and above of the shares and the consent of all joint tenants shall be obtained, except where the co-owners have agreed otherwise.
Article 98:Where there is an agreement on management fee and other burdens of co-owned properties, such agreement shall prevail; where there is no agreement or the agreement does not provide specifically, tenants in common shall bear the burdens according to their share while joint tenants shall bear the burdens jointly.
Article 99: Where the co-owners have agreed on undivided co-ownership of an immovable property or a movable property to maintain the co-ownership, such agreement shall prevail; but where there is a need for division due to an important reason, a co-owner may request for division; where there is no agreement or the agreement does not provide specifically, tenants in common may request for division at any time; while joint tenants may request for division citing loss of co-ownership basis or when there is an important reason for division. Where the division causes damages to other co-owners, compensation shall be made.
Article 100: Co-owners may negotiate and determine the division methods. Where no agreement is reached, the co-owned immovable property or movable property may be divided and its value shall not be reduced due to the division, the physical property shall be divided; where it is difficult to divide the physical property or the division will reduce the value, the proceeds from cashing, auction or sale shall be divided.
Where the portion of an immovable property or movable property received by a co-owner from the division is flawed, the other co-owners shall share the loss.
Article 101:A tenant in common may transfer his share of a co-owned immovable property or movable property. The other co-owners shall be entitled to pre-emptive rights under the same conditions.
Article 102: Unless otherwise stipulated by the law or where a third party is aware that the co-ow ners do not have a joint creditor’s rights and liabilities relationship, the co-owners of a co-owned immovable property or movable property shall share creditor’s rights arising thereon jointly and bear liabilities jointly and severally to external parties; unless otherwise agreed among the co-owners, tenants in common shall share creditor’s rights and bear liabilities in accordance with their share while joint tenants shall share creditor’s rights and bear liabilities jointly. A tenant in common shall have the right to seek recourse from the other tenants in common if the portion of debt he has repaid exceeds his share.
Article 103: Where the co-owners have not agreed on tenancy in common or joint tenancy for a co-owned immovable property or movable property or the agreement is not specific, the co-ownership shall be deemed as a tenancy in common except where the co-owners have a family relationship.
Article 104:Where the tenants in common have not agreed upon their shares in a co-owned immovable property or movable property or where the agreement is not specific, the shares shall be determined by the respective amounts of capital contribution; where the amounts of capital contribution cannot be determined, the tenants in common shall be deemed to have equal shares.
Article 105:The provisions of this chapter shall apply as reference to usufruct and collateral rights co-owned by two or more units or individuals.
CHAPTER NINE: SPECIAL PROVISIONS ON OBTAINING OWNERSHIP
Article 106: Where a transferor who does not have the right of disposal has transferred an immovable property or a movable property to a transferee, the owner shall have the right of recourse; unless otherwise provided by the law, the transferee shall have the ownership of the said immovable property or movable property under the following circumstances:
1.the transferee is a bona fide [good faith] party when he accepts the said
immovable property or movable property; and
2.the transfer is made at a reasonable price; and
3.the immovable property or movable property transferred has been registered as
required pursuant to the provisions of the law or the immovable property or movable property which is not required to be registered has been delivered to the transferee.
Where the transferee has obtained ownership of the immovable property or movable property pursuant to the provisions of the preceding paragraph, the original owner shall have the right to claim compensation for damages from the transferor who does not have the right of disposal.
In the event that a bona fide party concerned has obtained other property rights, the case shall be dealt with reference to the provisions of the two preceding paragraphs.
Article 107: An owner or any other rights holder shall have the right to recover a lost property. Where the lost property is possessed by others through a transfer, the rights holder shall have the right to claim compensation from the transferor who does not have the right of disposal or require the transferee to return the property within two years from the date the rights holder becomes aware or should be aware of the transferee; however if the transferee has obtained the said property through an auction or from a qualified business operator, the rights holder shall, at the time of demanding return of the said property, pay for the expenses paid by the transferee. The rights holder shall, upon making payment to the transferee for the expenses paid, seek recourse from the transferor who does not have the right of disposal.
Article 108: The original rights on a movable property shall extinguish after the bona fide transferee has taken possession of the movable property, except where the bona fide transferee is aware or should be aware of such rights at the time of accepting the transfer. Article 109: A lost property which has been found shall be returned to the rights holder.
A person who found a lost property shall promptly notify the rights holder or hand over the property to the public security department or the relevant authorities.
Article 110: Upon receipt of a lost property, the relevant authorities shall notify the rights holder for collection if it is aware of the right holder’s identity; otherwise, a public announcement shall be made promptly.
Article 111: A person who found a lost property shall take proper care of the property prior to handing over the property to the relevant authorities; the relevant authorities shall take proper care of the property prior to collection by the rights holder. A person who causes damage or extinguishment of a lost property intentionally or due to gross negligence shall bear civil liabilities.
Article 112: A rights holder shall, at the time of collection of a lost property, make payment to the person who found the lost property or the relevant authorities for the requisite expenses incurred in handling the property.
A rights holder who has offered a reward to recover a lost property shall perform the obligation accordingly at the time of collection of the lost property.
A person who took possession of a lost property found shall have no right to claim expenses incurred for keeping the property or the right to demand the rights holder to perform reward obligation.
Article 113: A lost property which is not collected within six months from the date of public announcement for collection shall belong to the State.
Article 114: In the event of a drift item, buried item or hidden item is found, the case shall be handled with reference to the relevant provisions on lost items or property found. Where the Cultural Relics Protection Law etc provides otherwise, such provisions shall prevail.
Article 115: Unless agreed otherwise between the parties concerned, in the event of a transfer of the principal property, all auxiliary properties shall be transferred together.
Article 116: The owner shall be entitled to natural fruits from the property; where there is an owner and a usufruct holder, the usufruct holder shall be entitled to natural fruits from the property. Where the parties concerned agree otherwise, the agreement shall prevail.
The parties concerned shall be entitled to statutory fruits from the property in accordance with their agreement; where there is no agreement or the agreement is not specific, the parties concerned shall be entitled to the statutory fruits pursuant to the transaction practice.
Part Three: Usufruct
CHAPTER TEN: GENERAL PROVISIONS
Article 117: Usufruct holders shall have the right rights of possession, use and seeking benefits of immovable property or movable property owned by others.
Article 118: Units and individuals may be entitled, pursuant to the law, to the possession, use and benefits of natural resources owned by the State or owned by the State and used collectively and stipulated by the law to be collectively-owned.
Article 119:Unless otherwise provided by the law, the State implements the compensated use system for natural resources.
Article 120: Usufruct holders shall comply with the provisions of laws on protection and optimized development and utilization of resources when they exercise their rights. Owners shall not interfere with the exercise of rights by usufruct holders.
Article 121:Where the requisition of an immovable property or a movable property causes the extinguishment of usufruct or affects the exercise of usufruct, a usufruct holder shall have the right to obtain the corresponding compensation pursuant to the provisions of Article 42 and Article 44 of this Law.
Article 122: The right to use sea territory pursuant to the law shall be protected by the law.
Article 123: Mineral exploration right, mining right, water drawing right and the rights to use water territories and shoals to engage in breeding and fishing pursuant to the law shall be protected by the law.
CHAPTER ELEVEN: LAND CONTRACTED OPERATION [CHENGBAO]
RIGHTS
Article 124: Household contract operation shall form the basis of rural collective economic organizations and a two-tier operation system which is a combination of centralization and decentralization shall be implemented.
A land contracted operation system shall be implemented pursuant to the law for arable land, forest land, grassland and other land used for agriculture which is collectively-owned by the farmers or owned by the State and used collectively by the farmers. Article 125: A holder of a land contracted operation right shall enjoy the rights of possession, use and seeking benefits of arable land, forest land, grassland etc under contracted operations pursuant to the law and shall have the right to engage in planting, forestry, husbandry and other agricultural operations.
Article 126: The contract period for arable land shall be 30 years. The contract period for grassland shall be 30 to 50 years. The contract period for forest land shall be 30 to 70 years. The contract period for forest land of special forest products may be extended with the approval of the forestry administration department of the State Council.
Upon expiry of a contract period stipulated in the preceding paragraph, the holder of land contracted operation right may continue the contract operations pursuant to the relevant provisions of the State.
Article 127: Land contracted operation right shall be created when the contract for land contracted operation right comes into effect.
Local People’s Governments of county level and above shall issue land contracted operation right certificates, forest rights certificates and grasslands’ use certificates to holders of land contracted operation right, maintain a register and confirm land contracted operation right.
Article 128: A holder of land contracted operation right shall have the right to circulate land contracted operation right by way of subcontract, exchange or transfer etc pursuant to the provisions of rural land contract law. The circulating period shall not exceed the remaining term of the contract period. Contracted land shall not be used for non-agricultural development purposes without obtaining prior approval pursuant to the law.
Article 129: Where a holder of land contracted operation right has exchanged or transferred land contracted operation right, the parties concerned applying for registration shall complete change on registration for land contracted operation right with a local People’s Government of count y level and above; where the registration formalities have not been completed, the parties concerned shall not contest against a bona fide third party.
Article 130: The party awarding a contract shall not adjust contracted land within the contract period.
Where contracted arable land and grassland need to be adjusted under special circumstances such as serious damage to contracted land caused by natural disaster, the case shall be dealt with pursuant to the provisions of the rural land contract law etc.
Article 131: The party awarding a contract shall not recall the contracted land during the contract period. Where the rural land contract law and other relevant laws provide otherwise, such provisions shall prevail.
Article 132: In the event of requisition of contracted land, the holder of land contracted operation right shall have the right to obtain the corresponding compensation pursuant to the provisions of the second paragraph of Article 42 hereof.
Article 133: The land contracted operation right of rural land such as barren land etc contracted by way of an invitation to tender, auction or open negotiation etc may be transferred, contributed as capital, mortgaged or circulated in any other manner pursuant to the relevant provisions of the rural land contract law etc and the State Council.