Land Rights Remains Hot Topic, Shenzhen Law Examined

The topic of land rights is picking up steam as citizens want to know what happens at expiration. One story from a smaller city in Sichuan shows isolated cases of land rights expiration are cropping up all over China.

Xinhua: 深圳规土委解读土地使用权续期 1995年9月18日前出让的自动顺延

Google translate mashes up the legalese, but the gist is the Shenzhen law from 1995 allowed for automatic renewal of land rights, but it didn't work out the details. Later there was an additional law for the extension of land rights, which was priced at 35% of a benchmark land price.

A Shenzhen official has addressed the topic: 深圳官方发文解读土地使用权续期规定

The key point here is the issue is being studied:
Third, the issue of land rights expiration after 18 September 1995, in 1995 after September 18 has been signed "land use right transfer contract" land use rights expire, how renewal, the need to pay the premium and other issues, our city is studying and formulating relevant policies.

Another article from Sichuan looks at land rights in the city of Nanchong.

iFeng: 南部:房屋产权剩7年 国土局回复可申请续期至70年

A property owner in Nanchong learns his land use rights expire in September 2022 and wonders what will happen.
Housing land use period is generally 70 years, why the district was only 15 years? In this regard, Nanbu County Land Resources Bureau responded that this is a contract signed with the developers of the owners, 15-year useful life is not illegal. Also reminded land users need to use the land before the expiration of one year, may apply for renewal to the land department for 70 years.
The homeowner spoke with reporters:
Yesterday around 11:00, the Sichuan News Network reporter came Nanbu Xiaoxia Road, "Sentai Nanjun Dijing" area. Mr. Lang told reporters the property rights issue has been bothering him for a long time. And he said he lived in the district a D1 building. Mr. Lang said that in 2011 he and Sichuan Province Sentai Real Estate Development Co., Ltd. signed a contract for the sale of real estate. In 2012, he moved into a new house.

"Buy a new house only 3 years time, have barely lived here, and only remaining rights of 7 years, it does make people wonder." Mr. Lang then brought out with a real estate sales contracts signed in 2011. Under the contract shows that "Nanjun Dijing" D1 plots of state-owned land use right certificates for the Southland with (2007) No. 1558, where the buyer to purchase real estate for commercial and residential land use, land use period from 2007 to September 30 September 29, 2022, which means that Mr. Lang house term for land use only 7 years remaining.

Since the land rights expiration is marked on the contract, why was Mr. Lang was not questioned? Mr. Lang told reporters that when the house is for their parents to buy, when signing the contract, did not think there will be any problems on land use period, so they signed it.
Many other homeowners in that development are facing a similar issue. The government says the land rights can be extended however, and it has created a formula for calculating the cost:
Property rights problem, Mr. Lang reflected that many residential property owners have experienced similar confusion. In this regard, Sentai, a state real estate company responsible person responded that the 15-year term of house property company money to buy, and when owners purchase, housing pre-sale permit, land use experience and other information all revealed in advance.

Now 15 years later, the land use period expires, then the house how to do? Nanbu County Land Resources Bureau, deputy director Lishao Guo said that the land use right transfer contract life expires and the land users to continue to use the land shall be no later than one year before the expiration of the period to apply for renewal, in addition to the need to recover the public interest land, shall be approved. Extension is approved, it should re-sign land use right transfer contract, pay the land use right transfer fee in accordance with regulations.

Now that you can apply for renewal, how to calculate the cost of that? Lishao Guo said, after receiving an application for renewal submitted by the land users, land and resources will be a third party land evaluation institutions, with reference to benchmark premium segment over the city to assess needs and then approved the renewal of the land required to pay the costs.

In this regard, Nanbu County Mingxin land appraisal firm Ms. Wang told reporters, lots of different land base price will be different, and the renewal fee is paid by the applicant to submit the application by the benchmark land price when calculated. At the same time, Ms. Wang also illustrates, if Nanbu Xiaoxia Road building is 10-stories, one of the tenants on their own application for renewal of housing and land use rights, and the government according to the present benchmark land price (each year adjust) of 1337 yuan / m, if the applicant's housing and land use area of ​​120 square meters, the 70-year renewal of the house need to pay the renewal fee is 16,044 yuan (120 ÷ 10 × 1337).
Far cheaper than in Wenzhou (See: Wenzhou Sets Off The Housing Bomb). By that formula it also isn't a big concern for people living in tall apartment buildings, but could be an issue for those living in detached single family homes.

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