Purchasing Property in China

Comments from Ya & Tai Law Firm:

There are two kinds of lands in China. One is owned by the nation and such kind of land can be assigned to the land users. The Land Administration Bureau will sign an assignment agreement with the land users with the use time in it. For the manufacturing land, the use time is within 50 years. The land user can apply for extension before the termination and sign another assignment agreement with the Land Administration Bureau, but the fees for use of the land will be changed accordingly.

After the certificate of the land is obtained the land user can transfer, mortgage and lease. Another kinds of land is owned by what we called collective. Such kind of land can be assigned or leased only after it has been required by the nation. So pay attention to such kind of land. Of course the city will help you to finish the requirement if the investment is big enough. When comes to this kind of land, asking them to finish the requirement and assignment before you set up the factory is not only lawful but also avoiding the risk. And remember the assignment contract can only be signed with Land Administration Bureau, or the contract will be treated as invalidation according the regulations recently published. The term of the assignment of the land also will depend on the registered terms of the WFOE. As to the lease of the land, the term of lease won’t be more than 20 years.

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