1 / 12

New Developments in Chinese Property Law

New Developments in Chinese Property Law. Donald Clarke Oct. 24, 2008. Bottom line: not much change. Urban land Rural land. Urban land. Pre-Property Law (March 2007) State “ownership” “Granted” LURs of 40, 50, or 70 years “Property” rights good against the world Transferable

hu-ball
Télécharger la présentation

New Developments in Chinese Property Law

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. New Developments in Chinese Property Law Donald Clarke Oct. 24, 2008

  2. Bottom line: not much change • Urban land • Rural land

  3. Urban land • Pre-Property Law (March 2007) • State “ownership” • “Granted” LURs of 40, 50, or 70 years • “Property” rights good against the world • Transferable • Reversion back to landlord (state) at end of term

  4. Urban land • Property Law • Housing LURs • “Automatic” renewal • Non-housing LURs • Renewal “according to laws and regulations” • Does it matter? • PV of 70-year LUR > 95% of fee simple

  5. Rural land • New policy? • Oct. 19th Central Committee communique

  6. Rural land • Pre-Property Law • Rural land “owned” by “collectives” • Land contracted out to farmers for 30 years (30-year LURs) • Deemed contract rights • Transferable with limits • Assignments: if transferor has stable income • Subleases: other collective members have ROFR

  7. Rural land • Sublease • Assignment T’or T’ee T’or Owner 0 10 29 30 T’or T’ee Owner 0 10 30

  8. Rural land • Consequences of transferability under existing rules • Farmer can realize full (almost full) PV of remaining LUR term by assignment (sublease) • No safety net if farmer sells remaining LUR term • So why the concern about farmers losing land through mortgage foreclosures?

  9. Rural land • Property Law • Includes rural LURs as “property” • Consequences • More security against land readjustments? • No approval needed for transfer? • Direct compensation from state upon taking?

  10. Rural land • Property Law • Renewal of rural LURs • Art. 126: When the contracted term expires, the contractor may continue the contract according to relevant provisions of the State. • Anything new?

  11. Rural land • Central Committee communique • No intention to abolish collective ownership • Affirms existing rights to transfer, sublease, etc. • May sell, but may not use as collateral • New developments • Chengdu rural LUR exchanges

  12. Rural land • Bottom line • Lack of credit not caused by existing rules, won’t be fixed by changing rules to allow collateralization • Caused by poor definition and documentation of LURs and rigid system of rural finance

More Related