中华人民共和国城市房地产管理法 LAW OF THE PEOPLES REPUBLIC OF CHINA ON ADMINISTRATION OF THE URBAN REAL ESTATE

of allocation and the transfer of the real estate is reported for approval， and where the people's government that has the authority for approval decides in accordance with the provisions of the State Council that the formalities for granting the land-use right need not be gone through， the transferor shall， pursuant to the provisions o

f the State Council， turn over to the State the proceeds obtained from land in the transfer of the real estate or dispose of such proceeds otherwise.

　　Article 40 For the transfer of real estate， a written transfer contract shall be concluded in which the mode of obtaining the land-use right shall be stated.

　　Article 41 When real estate is transferred， the rights and obligations stated in the contract for granting the land-use right shall be transferred therewith.

　　Article 42 Where the land-use right is obtained by mode of granting and after the real estate is transferred， the term for the use of the land-use right shall be the remaining years after subtracting the years of use by the former land user from the original term agreed upon in the contract for granting the land-use right.

　　Article 43 Where the land-use right is obtained by mode of granting and after the real estate is transferred， the transferee modifies the land-use purpose agreed upon in the contract for granting the land-use right， the transferee must obtain consent from the transferor and the administrative department in charge of urban planning under the people's government of the relevant city or county， and conclude an agreement on the modification of the contract for granting the land-use right or enter into a new contract for granting the land-use right and readjust the fees for granting the land-use right accordingly.

　　Article 44 For the presale of commercial houses， the following conditions shall be met：

　　1. to have paid all the fees for the granting of the land-use right and obtained the certificate of the land-use right；

　　2. to have a permit for construction project planning；

　　3. the funds put into the development construction have reached twenty-five percent or more of the total investment for the construction project， computed on the basis of the commercial houses provided for presale， and the schedule of construction and the date of completion for delivery have been set； and

　　4. to make registration for presale at the administrative department in charge of house property under the people's government at or above the county level and to obtain the certificate of permission for the presale of commercial houses.

　　Pre-sellers of commercial houses shall， in accordance with the relevant provisions of the State， submit the presale contracts to the departments of housing administration and departments of land administration under the people's governments at or above the county level for registration and record.

　　The proceeds obtained from the presale of commercial houses must be used for the relevant construction projects.

　　Article 45 In the case of presale of commercial houses， matters concerning the transfer of incomplete pre-sold commercial houses that the buyers have purchased shall be prescribed by the State Council.

　　Section 3 Mortgage of Real Estate

　　Article 46 Mortgage of real estate refers to acts that a mortgagor provides the mortgagee security for the payment of a debt with his legal real estate in the manner that the possession of his real estate is not transferred. Where a debtor fails to pay his debt， the mortgagee shall have the right in accordance with the law to enjoy the priority in compensation to be paid with funds obtained from auction of the real estate mortgaged.

　　Article 47 A mortgage may be created on the ownership of a house obtained according to law together with the land-use right to the house site.

　　A mortgage may be created on the land-use right obtained by mode of granting.

　　Article 48 The mortgage of real estate shall be dealt with on the strength of the certificate of the land-use right and the certificate of ownership of the house.

　　Article 49 For the mortgage of real estate， the mortgagor and the mortgagee shall enter into a written mortgage contract.

　　Art

icle 50 Where the land-use right on which a mortgage is created is obtained by mode of allocation， the mortgagee may enjoy the priority in compensation only after the amount equal to the fees for the granting of the land-use right is paid from the funds obtained from auction of the real estate done in accordance with the law.

　　Article 51 After a contract for the mortgage of the real estate is concluded， newly-built houses on the land shall not be regarded as the mortgaged asset. If the mortgaged real estate needs to be sold by auction， the newly-built houses on the land may be auctioned off according to law together with the mortgaged assets. However， the mortgagee shall not have the priority in compensation with respect to the funds obtained from auction of the newly-built houses.

　　Section 4 Lease of Houses

　　Article 52 Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a lea see for use and the lea see pays rent for the house to the leaser.

　　Article 53 In the lease of a house， the leaser and the lea see shall conclude a written lease contract defining such matters as the term， purpose， and price of the lease， liability for repair， as well as other rights and obligations of both parties， and shall register the lease with the department of housing administration for the record.

　　Article 54 Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and the people's government of the city where the houses are located. Where houses are leased for activities of production and business operation， the rent and other terms for the lease shall be determined by both parties through consultation.

　　Article 55 Where an owner of a house， for profit-making purposes， leases the house built on the State-owned land， the land-use right for which is obtained by mode of allocation， he shall turn over to the State the proceeds derived from the land and contained in the rent. The specific measures shall be prescribed by the State Council.

　　Section 5 Intermediary Service Agencies

　　Article 56 Intermediary service agencies for real estate include real estate consultant agencies， real estate price appraisal agencies and real estate broking agencies.

　　Article 57 Intermediary service agencies for real estate shall meet the following conditions：

　　1. to have names and institutional structures of their own；

　　2. to have fixed premises to provide services；

　　3. to have necessary property and funds；

　　4. to have sufficient professional personnel； and

　　5. other conditions provided by laws， administrative rules and regulations.

　　For establishing an intermediary service agency for real estate， an application for registration of the establishment shall be submitted to the administrative department for industry and commerce and a business licence shall be obtained， before it starts its business.

　　Article 58 The State shall practise a qualification authentication system for real estate price appraisers.

　　Chapter V Administration of Real Estate Ownership Registration

　　Article 59 The State shall practise a system of registration and certification for land-use right and ownership of houses.

　　Article 60 Where the land-use right is obtained by mode of granting or allocation， an application for registration shall be submitted to the department of land administration under the local people's government at or above the county level. Upon verification by the department of land administration under the local people's government at or above the county level， the certificate of the land-use right shall be issued by the people's government at the corresponding level.

　　Where a house is built on the land for real estate development obtained pursuant to the law， an application for registration shall， on th

e strength of the certificate of land-use right， be submitted to the department of housing administration under the local people's government at or above the county level. The department of housing administration under the local people's government at or above the country level shall issue the certificate of ownership of the house after verification.

　　Where transfer or modification of real estate is made， an application for registration of the modification of house property shall be submitted to the department of housing administration under the local people's government at or above the county level and on the strength of the certificate of the ownership of the house after modification， an application for registration of the modification of the land-use right shall be submitted to the department of land administration under the people's government at the corresponding level. Upon verification by the department of land administration under the people's government at the corresponding level， a new or a modified certificate of the land-use right shall be issued by the people's government at the corresponding level. Where provided otherwise by laws， the provisions of relevant laws shall apply.

　　Article 61 Where real estate is mortgaged， registration of mortgage shall be made with the department designated by the local people's government at or above the county level.

　　Where the land-use right and the ownership of a house are obtained from di

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