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Measures of Shanghai Municipality on the Compensat
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1988.01.01
SHANGHAI MUNICIPALITY
 MEASURES  OF  SHANGHAI MUNICIPALITY ON THE COMPENSATORY TRANSFER OF
LAND USE RIGHTS
 (Promulgated  November  29,  1987  by the Shanghai Municipal
People's Government)
CONTENTS
CHAPTER I GENERAL PRINCIPLES
CHAPTER II CHARGED TRANSFER OF LAND USE RIGHTS
CHAPTER III ASSIGNMENT OF LAND USE RIGHTS
CHAPTER IV MORTGAGE
CHAPTER V RECOVERY OF LAND USE RIGHTS
CHAPTER VII SUPPLEMENTARY PRINCIPLES
CHAPTER I GENERAL PRINCIPLES
 @@  Article  1.  These  Measures  are formulated in accordance
with  the relevant  State regulations in order to give impetus to
all-round reform and the  opening  up  of China to foreigners, to
reform the land use system, to trial  a system of compensatory
transfer  of  land use rights and to accelerate the development of
Shanghai's economy.
 @@  Article  2. For the purposes of these Measures, the meaning of
certain terms shall be as follows:
 (1)  The  compensatory  transfer of land use rights refers to
economic activities,  which involve real estate transactions by means
of the charged transfer land use rights or the assignment of land use
rights.
 (2) The charged transfer of land use rights (hereinafter referred
to as charged  transfer)  refers to cases in which the Shanghai
Municipal  People's  Government  (hereinafter referred to as the
Municipal Government) designates a specified area of State owned land
under stipulated terms and conditions, such as the duration of the
transfer period and the nature of usage of the land, for development
and  operation  by the transferee of the land use rights, for which
the transferee shall pay a transfer charge and a land use charge for
the right to use the land.
 (3)  The  assignment of land use rights (hereinafter referred
to  as assignment)  refers  to the re-transfer of land use rights by
the transferee of the said rights after their initial transfer.
 (4)  The  transfer charge paid for the transfer of land use rights
refers to the sum of money paid to the Government by the transferee
of the land use rights in order to acquire the land use rights.
 (5)  The land use charge refers to the sum of money paid annually
to the Government by the transferee of the land use rights for the use
of the land.
 (6)  The transferee of the land use rights (hereinafter referred to
as the transferee)  refers  to those enterprises, other economic
entities  and individuals  which  acquire land use rights as the
result of the charged transfer, assignment or inheritance of land use
rights.
 @@  Article  3.  If  the  rights to use a piece of land are
transferred with compensation,ownership of the land shall remain with
the People's Republic of China.
 None  of  the various natural resources, minerals, buried and hidden
objects etc.  ,  found underground shall be included within the
scope of the compensatory transfer of land use rights.
  @@  Article  4.  Enterprises,  other  economic  entities  and
individuals of countries  or  regions which have not established
diplomatic  relations with, or  which  have  not  established  a
commercial representative office in the People's Republic of China
shall not be entitled to become transferees.
 @@  Article  5.  The legal rights and interests of a transferee
shall be protected by the law.
 All  activities relating to the compensatory transfer of land use
rights shall  comply with the laws and statutory regulations of
the People's Republic China and the relevant provisions of Shanghai
Municipality.
 @@  Article  6.  The  Shanghai  Municipal  Land Administration
Bureau (hereinafter  referred to as the Municipal Land Bureau) shall
be the organ in  charge  of matters concerning the compensatory
transfer of land use rights within the Municipality.
 A  contract  for  the  charged  transfer  of  land use rights
(hereinafter referred  to as the transfer contract) shall be signed
between the Municipal Land Bureau and the transferee.
 @@  Article  7.  The  Shanghai Real Estate Registry (hereinafter
referred to as the Municipal Registry) shall be responsible for
all  matters  of registration concerning the compensatory transfer
of  land  use rights. Registration document may be consulted by the
public.
 @@  Article  8.  The maximum number of years of transfer shall be
determined by the Municipal Land Bureau from within the following
limits:
(1) Land for recreation : 20 years
(2) Land for industry : 40 years
(3) Land for flats and residential use : 50 years
(4) Land for hotels, commercial and office buildings : 50 years
 (5)  Land for science & technical research, education, culture and
hygiene : 50 years
(6) Land for comprehensive use and other purposes : 50 years
 

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