Administrative Measures of Beijing Municipality for Mortgages on Real Estate (Revised in 1997)
Administrative Measures of Beijing Municipality for Mortgages on Real Estate (Revised in 1997)
Administrative Measures of Beijing Municipality for Mortgages on Real Estate (Revised in 1997)
Order of the People's Government of Beijing Municipality No. 12
December 31, 1997
Chapter I General Provisions
Article 1 For the purpose of strengthening the administration of mortgages on real estate in this municipality, maintaining the order in the real estate market and protecting the lawful rights and interests of mortgagors and mortgagee, these Measures are formulated in accordance with the relevant laws and regulations.
Article 2 These Measures apply to any mortgage raised on the real estate located within the administrative region of this municipality.
Article 3 The creation of a mortgage on real estate shall comply with the principles of free will, mutual benefits, equality and good faith. A mortgage lawfully raised on real estate shall be protected by the law.
Article 4 Any mortgage on real estate in this municipality shall be subject to the registration system.
Chapter II Creation of Mortgage
Article 5 A mortgage may be raised on any of the following categories of real estate in accordance with these Measures:
1. Use right to state-owned land acquired through lawful grant or transfer (hereinafter referred to as the land);
2. Houses (including fixture) whose ownership or expectant rights and interests have been acquired; and
3. Other real estate which may be mortgaged in accordance with laws and regulations.
Article 6 No mortgage may be raised on any of the following categories of real estate:
1. Real estate whose ownership is in dispute;
2. Leased residential houses without fixed term of lease;
3. Real estate which has been announced by the government to be expropriated or relocated;
4. Real estate used for education, medical service, public utility and welfare;
5. Ancient buildings which has listed among historical relic;
6. Real estate which has been sequestrated, seized or subject to other preservation order in litigation in accordance with law; and
7. Other real estate which may not be mortgaged in accordance with law.
Article 7 A mortgage on land use right acquired by grant or transfer may not violate the land grant contract, and the term of mortgage may not exceed the balance between the term of use specified in the land grant contract and the term which has expires. When a land use right is mortgaged, all the buildings and fixture on the land shall be part of the mortgage object. When a house is mortgage, the land use right within the scope of the house shall also be mortgaged.
Article 8 A mortgage on state-owned houses shall be reported to the administrative department for state-owned assets for filing.
Article 9 In the case of a mortgage on real estate owned by several owners, the mortgagor shall obtain the prior written consent from all other co-owners.
Article 10 In the case of a mortgage on real estate which has been leased, the mortgagor shall inform the mortgagee of the lease, and inform the tenant of the mortgage, and the former lease contract shall survive.
If a tenant needs to continue the lease after it expires during the term of mortgage, a consent shall be obtained from the mortgagee.
Article 11 In the case of a mortgage on real estate which has been mortgaged, the mortgagor shall obtain the prior written consent from the former mortgagee, and inform the new mortgagee of the former mortgage.
Article 12 When raising a mortgage on real estate, the mortgagor shall provide the mortgagee with an asset assessment report of the real estate to be mortgaged, and the mortgagee shall have the right to examine such report.
Article 13 With the consent of the mortgagor, a mortgagee may purchase insurance for the real estate mortgaged in the name of and at the expense of the mortgagor.
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