Administrative Regulations on Urban Real Estate Development and Operation (Revised in March 2020)
Administrative Regulations on Urban Real Estate Development and Operation (Revised in March 2020)
Administrative Regulations on Urban Real Estate Development and Operation (Revised in March 2020)
Order of the State Council of the People's Republic of China No. 726
March 27, 2020
(Promulgated by Order of the State Council of the People's Republic of China No. 248 on July 20, 1998; revised for the first time by the Decisions of the State Council on Repealing and Amending Certain Administrative Regulations on January 8, 2011; revised for the second time by the Decision of the State Council on Revising Certain Administrative Regulations on March 19, 2018; revised for the third time by the Decision of the State Council on Revising Certain Administrative Regulations on March 24, 2019; and revised for the fourth time by the Decision of the State Council on Revising and Repealing Certain Administrative Regulations on March 27, 2020)
Chapter I General Provisions
Article 1 For the purposes of regulating the development and operation of real estate, strengthening the supervision and administration of the development and operation of urban real estate and promoting and safeguarding the sound development of the real estate sector, these Regulations are formulated in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of the Urban Real Estate.
Article 2 The term "real estate development and operation" as used in these Regulations means acts of infrastructure construction and housing construction carried out by real estate development enterprises on state-owned land within urban planning zones, and those of transfer of real estate development projects or sale and rental of commodity houses.
Article 3 In real estate development and operation, the relevant activities shall comply with overall planning, rational layout, integrated development and matching construction and economic benefits shall be combined with social benefits and environmental benefits.
Article 4 The competent department of construction administration under the State Council shall be responsible for the work of supervision and administration of real estate development and operation activities nationwide.
The competent departments of real estate development of local people's governments at and above the county level shall be responsible for the work of supervision and administration of real estate development and operation activities within their respective areas.
The departments in charge of land administration of people's governments at and above the county level shall, in pursuance of the provisions of the relevant laws and administrative regulations, be responsible for the land administration related to real estate development and operation.
Chapter II Real Estate Development Enterprises
Article 5 Establishment of a real estate development enterprise shall, in addition to the conditions for enterprise establishment prescribed by relevant laws and administrative regulations, fulfil the following conditions:
1. The registered capital shall be over RMB 1 million Yuan; and
2. The enterprise shall have more than 4 full-time technical personnel with certificates of qualifications of real estate specialty and construction engineering specialty and more than 2 full-time accountants with certificates of qualifications.
People's governments of the provinces, autonomous regions and municipalities directly under the Central Government may, in the light of the actual conditions prevailing in their respective localities, work out provisions for the conditions of registered capital and specialized technical personnel for the establishment of a real estate development enterprise higher than those in the preceding paragraph.
Article 6 Establishment of a real estate development enterprise by foreign investment shall, in addition to the provisions of Article 5 of these Regulations, go through relevant formalities of examination and approval in pursuance of the provisions of laws and administrative regulations on foreign-invested enterprises.
Article 7 For the establishment of a real estate development enterprise, an application for registration shall be filed with the department of industry and commerce administration of the people's government at or above the county level. The department of industry and commerce administration shall, within 30 days starting from the date of receipt of an application, enter into registration the application of which is in line with the conditions prescribed in Article 5 of these Regulations; reasons shall be explained in the case of an application not in line with the conditions is not to be entered into registration.
The department of industry and commerce administration shall, in examining an application for registration for the establishment of a real estate development enterprise, seek the views of the competent department of real estate development at the corresponding level.
Article 8 A real estate development enterprise shall, within 30 days from the date of obtaining the business license, submit the following paper or electronic materials to the competent department of real estate development at the place where the registration authority is located for the record:
1. a photocopy of the business license;
2. the articles of association of the enterprise; and
3. the certificates of qualifications and employment contracts of specialized technical personnel.
Article 9 The competent department of real estate development shall, on the basis of the assets, specialized technical personnel and development and operation achievements, verify the human quality grade of a real estate development enterprise put on record. The real estate development enterprise shall, in accordance with the verified human quality grade, undertake corresponding real estate development projects. Specific measures shall be formulated by the competent department of construction administration under the State Council.
Chapter III Real Estate Development and Construction
Article 10 Determination of a real estate development project shall meet the requirements of overall planning for land utilization, annual plan for construction land use and urban planning and annual plan for real estate development; where approval by the competent department of planning is necessitated pursuant to relevant state provisions, it shall be submitted to the competent department of planning for approval and included in the annual fixed asset investment plan.
Article 11 Determination of a real estate development project shall adhere to the principle of integration of reconstruction of old districts and construction of new districts, with emphasis on the development of areas where there are weak infrastructure, traffic congestion, serious environmental pollution and concentration of dangerous and dilapidated houses, protection and improvement of urban ecological environment and protection of historic and cultural heritage.
Article 12 Land for real estate development shall be acquired in the form of transfer; however, where the form of appropriation may be adopted under provisions of law and the State Council is excluded.
The competent departments of urban planning administration and the competent departments of real estate development of local people's governments at or above the county level shall, prior to the transfer or appropriation of land use right, put forth views in writing on the following matters as one of the basis of transfer or appropriation of land use right:
1. nature, scale and duration of development of a real estate development project;
2. urban planning design criteria;
3. construction requirements for infrastructure and public facilities;
4. property rights definition upon completion of infrastructure; and
5. requirements for dismantling and moving compensation and resettlement related to the project.
Article 13 The system of capital fund shall be established for a real estate development project, the percentage of capital fund in the total investment of a project shall not be less than 20%.
Article 14 Overall planning and arrangement for matching infrastructure shall be made in the development and construction of a real estate development project, and it shall be carried out in accordance with the principle of first the underground and then on the ground.
Article 15 A real estate development enterprise shall, in accordance with the land use and duration of construction and development agreed on in the contract of land use right transfer, proceed with project development and construction. Where construction and development have not started on expiry of one year of the duration of start of construction and development agreed on in the contract of transfer, an idle land fee equivalent to less than 20% of the land use right transfer money may be levied and collected; where construction and development have not started on expiry of two years, land use right may be withdrawn without compensation. However, where delay in the start of construction is caused by force majeure or acts of government and departments concerned of government or first-phase work indispensable for the start of construction and development is excluded.
Article 16 A real estate project, the development and construction of which is undertaken by a real estate development enterprise, shall conform to the provisions of relevant laws and regulations and technical specifications of construction project quality, safety standards, construction project survey, design and construction as well as the agreement in the contract.
A real estate development enterprise shall bear responsibility for the quality of the real estate development project the development and construction of which it has undertaken.
Survey, design, construction and supervision units shall, pursuant to the provisions of relevant laws and regulations or contract, bear corresponding responsibility.
Article 17 After the real estate development project is completed, it shall be delivered for use only after it has passed inspection and acceptance in accordance with the Administrative Regulations on the Quality of Construction Engineering.
Article 18 A real estate development enterprise shall record the major particulars in the process of construction of the real estate development project in the manuals of real estate development project and dispatch them to the competent department of real estate development at regular intervals for the record.
Chapter IV Real Estate Operation
Article 19 Transfer of a real estate development project shall conform to the conditions prescribed in Articles 39 and 40 of the Law of the People's Republic of China on the Administration of the Urban Real Estate.
Article 20 For the transfer of a real estate development project, the transferor and the transferee shall, within 30 days starting from the date of completion of the formalities of the change in registration of land use right, go to the competent department of real estate development with the contract on the transfer of the real estate development project for the record.
Article 21 When transferring a real estate development project, a real estate development enterprise has not completed compensated resettlement for dismantling and moving, the related rights and obligations contained in the original contract of compensated resettlement for dismantling and moving shall be transferred to the transferee.
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Order of the State Council of the People's Republic of China No. 726
March 27, 2020
(Promulgated by Order of the State Council of the People's Republic of China No. 248 on July 20, 1998; revised for the first time by the Decisions of the State Council on Repealing and Amending Certain Administrative Regulations on January 8, 2011; revised for the second time by the Decision of the State Council on Revising Certain Administrative Regulations on March 19, 2018; revised for the third time by the Decision of the State Council on Revising Certain Administrative Regulations on March 24, 2019; and revised for the fourth time by the Decision of the State Council on Revising and Repealing Certain Administrative Regulations on March 27, 2020)
Chapter I General Provisions
Article 1 For the purposes of regulating the development and operation of real estate, strengthening the supervision and administration of the development and operation of urban real estate and promoting and safeguarding the sound development of the real estate sector, these Regulations are formulated in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of the Urban Real Estate.
Article 2 The term "real estate development and operation" as used in these Regulations means acts of infrastructure construction and housing construction carried out by real estate development enterprises on state-owned land within urban planning zones, and those of transfer of real estate development projects or sale and rental of commodity houses.
Article 3 In real estate development and operation, the relevant activities shall comply with overall planning, rational layout, integrated development and matching construction and economic benefits shall be combined with social benefits and environmental benefits.
Article 4 The competent department of construction administration under the State Council shall be responsible for the work of supervision and administration of real estate development and operation activities nationwide.
The competent departments of real estate development of local people's governments at and above the county level shall be responsible for the work of supervision and administration of real estate development and operation activities within their respective areas.
The departments in charge of land administration of people's governments at and above the county level shall, in pursuance of the provisions of the relevant laws and administrative regulations, be responsible for the land administration related to real estate development and operation.
Chapter II Real Estate Development Enterprises
Article 5 Establishment of a real estate development enterprise shall, in addition to the conditions for enterprise establishment prescribed by relevant laws and administrative regulations, fulfil the following conditions:
1. The registered capital shall be over RMB 1 million Yuan; and
2. The enterprise shall have more than 4 full-time technical personnel with certificates of qualifications of real estate specialty and construction engineering specialty and more than 2 full-time accountants with certificates of qualifications.
People's governments of the provinces, autonomous regions and municipalities directly under the Central Government may, in the light of the actual conditions prevailing in their respective localities, work out provisions for the conditions of registered capital and specialized technical personnel for the establishment of a real estate development enterprise higher than those in the preceding paragraph.
Article 6 Establishment of a real estate development enterprise by foreign investment shall, in addition to the provisions of Article 5 of these Regulations, go through relevant formalities of examination and approval in pursuance of the provisions of laws and administrative regulations on foreign-invested enterprises.
Article 7 For the establishment of a real estate development enterprise, an application for registration shall be filed with the department of industry and commerce administration of the people's government at or above the county level. The department of industry and commerce administration shall, within 30 days starting from the date of receipt of an application, enter into registration the application of which is in line with the conditions prescribed in Article 5 of these Regulations; reasons shall be explained in the case of an application not in line with the conditions is not to be entered into registration.
The department of industry and commerce administration shall, in examining an application for registration for the establishment of a real estate development enterprise, seek the views of the competent department of real estate development at the corresponding level.
Article 8 A real estate development enterprise shall, within 30 days from the date of obtaining the business license, submit the following paper or electronic materials to the competent department of real estate development at the place where the registration authority is located for the record:
1. a photocopy of the business license;
2. the articles of association of the enterprise; and
3. the certificates of qualifications and employment contracts of specialized technical personnel.
Article 9 The competent department of real estate development shall, on the basis of the assets, specialized technical personnel and development and operation achievements, verify the human quality grade of a real estate development enterprise put on record. The real estate development enterprise shall, in accordance with the verified human quality grade, undertake corresponding real estate development projects. Specific measures shall be formulated by the competent department of construction administration under the State Council.
Chapter III Real Estate Development and Construction
Article 10 Determination of a real estate development project shall meet the requirements of overall planning for land utilization, annual plan for construction land use and urban planning and annual plan for real estate development; where approval by the competent department of planning is necessitated pursuant to relevant state provisions, it shall be submitted to the competent department of planning for approval and included in the annual fixed asset investment plan.
Article 11 Determination of a real estate development project shall adhere to the principle of integration of reconstruction of old districts and construction of new districts, with emphasis on the development of areas where there are weak infrastructure, traffic congestion, serious environmental pollution and concentration of dangerous and dilapidated houses, protection and improvement of urban ecological environment and protection of historic and cultural heritage.
Article 12 Land for real estate development shall be acquired in the form of transfer; however, where the form of appropriation may be adopted under provisions of law and the State Council is excluded.
The competent departments of urban planning administration and the competent departments of real estate development of local people's governments at or above the county level shall, prior to the transfer or appropriation of land use right, put forth views in writing on the following matters as one of the basis of transfer or appropriation of land use right:
1. nature, scale and duration of development of a real estate development project;
2. urban planning design criteria;
3. construction requirements for infrastructure and public facilities;
4. property rights definition upon completion of infrastructure; and
5. requirements for dismantling and moving compensation and resettlement related to the project.
Article 13 The system of capital fund shall be established for a real estate development project, the percentage of capital fund in the total investment of a project shall not be less than 20%.
Article 14 Overall planning and arrangement for matching infrastructure shall be made in the development and construction of a real estate development project, and it shall be carried out in accordance with the principle of first the underground and then on the ground.
Article 15 A real estate development enterprise shall, in accordance with the land use and duration of construction and development agreed on in the contract of land use right transfer, proceed with project development and construction. Where construction and development have not started on expiry of one year of the duration of start of construction and development agreed on in the contract of transfer, an idle land fee equivalent to less than 20% of the land use right transfer money may be levied and collected; where construction and development have not started on expiry of two years, land use right may be withdrawn without compensation. However, where delay in the start of construction is caused by force majeure or acts of government and departments concerned of government or first-phase work indispensable for the start of construction and development is excluded.
Article 16 A real estate project, the development and construction of which is undertaken by a real estate development enterprise, shall conform to the provisions of relevant laws and regulations and technical specifications of construction project quality, safety standards, construction project survey, design and construction as well as the agreement in the contract.
A real estate development enterprise shall bear responsibility for the quality of the real estate development project the development and construction of which it has undertaken.
Survey, design, construction and supervision units shall, pursuant to the provisions of relevant laws and regulations or contract, bear corresponding responsibility.
Article 17 After the real estate development project is completed, it shall be delivered for use only after it has passed inspection and acceptance in accordance with the Administrative Regulations on the Quality of Construction Engineering.
Article 18 A real estate development enterprise shall record the major particulars in the process of construction of the real estate development project in the manuals of real estate development project and dispatch them to the competent department of real estate development at regular intervals for the record.
Chapter IV Real Estate Operation
Article 19 Transfer of a real estate development project shall conform to the conditions prescribed in Articles 39 and 40 of the Law of the People's Republic of China on the Administration of the Urban Real Estate.
Article 20 For the transfer of a real estate development project, the transferor and the transferee shall, within 30 days starting from the date of completion of the formalities of the change in registration of land use right, go to the competent department of real estate development with the contract on the transfer of the real estate development project for the record.
Article 21 When transferring a real estate development project, a real estate development enterprise has not completed compensated resettlement for dismantling and moving, the related rights and obligations contained in the original contract of compensated resettlement for dismantling and moving shall be transferred to the transferee.
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