Regulations on the Expropriation and Compensation of Houses on State-owned Land

 2018-04-08  1124


Regulations on the Expropriation and Compensation of Houses on State-owned Land

Order of the State Council No.590

January 21, 2011

The Regulations on the Expropriation of Houses on State-owned Land and Compensation Therefor which were adopted by the 141st executive meeting of the State Council on January 19, 2011 are hereby promulgated and shall come into effect on the date of promulgation.

Premier: Wen Jiabao

Regulations on the Expropriation of Houses on State-owned Land and Compensation Therefor

Chapter I General Provisions

Article 1 In order to standardize the activities of expropriating houses on state-owned land and making compensation therefor, safeguard the public interest and protect the legitimate rights and interests of owners of the expropriated houses, these Regulations are formulated.

Article 2 If houses owned by entities or individuals on state-owned land are to be expropriated for the need of the public interest, fair compensation shall be made to the owners of the houses to be expropriated (hereinafter referred as to the expropriatees).

Article 3 The principles of democratic decision-making, due procedures and result disclosure shall be observed in expropriating houses and making compensation therefor.

Article 4 The people's governments at city and county level shall be responsible for house expropriation and compensation work within their respective administrative regions.
The departments for house expropriation determined by the people's governments at city and county level (hereinafter referred to as the "house expropriation departments") shall organize and implement house expropriation and compensation work within their respective administrative regions.
The relevant departments of the people's governments at city and county level shall, in accordance with the provisions hereof and the division of duties specified by the people's governments at the same level, work with each other to ensure that house expropriation and compensation work is carried out smoothly.

Article 5 House expropriation departments may authorize house expropriation implementing entities to undertake the specific work of house expropriation and compensation. House expropriation implementing entities shall not operate for profits.
House expropriation departments shall be responsible for supervising house expropriation and compensation activities carried out by house expropriation implementing entities within the scope of authorization and bear legal liability for the consequences of such activities.

Article 6 The people's governments at a higher level shall strengthen supervision over the house expropriation and compensation work of the people's governments at a lower level.
The competent housing and urban-rural development department of the State Council and the competent housing and urban-rural development departments of the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government shall, in conjunction with the departments of finance, land and resources, and development and reform and other departments at the same level, strengthen guidance over the work of carrying out house expropriation and compensation work.

Article 7 Any organization and individual shall have the right to report any act of violating the provisions hereof to the relevant people's government, house expropriation department and other relevant departments. The relevant people's government, house expropriation department and other relevant departments that receive the reports shall promptly verify and deal with such reports.
Supervisory organs shall strengthen supervision over governments, the relevant departments or entities and personnel thereof participating in house expropriation and compensation work.

Chapter II Expropriation Decision

Article 8 For the needs of the public interest such as safeguarding the national security and promoting the national economic and social development, if it is really necessary to expropriate houses under any of the following circumstances, the people's governments at city and county level shall make a decision to expropriate the houses:
1. In the case of the needs of national defense and diplomacy;
2. In the case of the needs of the construction of energy, traffic, water conservancy facilities and other infrastructures organized and carried out by the governments;
3. In the case of the needs of public undertakings such as science and technology, education, culture, hygiene and sanitation, sports, environment and resources protection, disaster reduction and mitigation, cultural relic protection, social welfare and municipal utility organized and implemented by the governments;
4. in the case of the needs of the construction of low-income housing projects organized and implemented by the governments;
5. In the case of the needs of rebuilding of old urban areas with a cluster of houses in danger and with obsolete infrastructure organized and implemented by the governments in accordance with the relevant provisions of the Urban-Rural Planning Law; or
6. In the case of the needs of other public interest specified in laws and administrative regulations.

Article 9 Construction activities for which it is really necessary to expropriate houses in accordance with the provisions of Article 8 hereof shall comply with national economic and social development plans, land use overall plans, urban-rural plans and special plans. The construction of low-income housing projects and the rebuilding of old urban areas shall be included in annual national economic and social development plans at city and county level.
To formulate national economic and social development plans, land use overall plans, urban-rural plans and special plans, the opinions of the general public shall be extensively solicited and scientific verification shall be conducted.

Article 10 House expropriation departments shall work out an expropriation and compensation plan and report the plan to the people's governments at city and county level.
The people's governments at city and county level shall organize relevant departments to conduct verification of the expropriation and compensation plan and publish the plan to solicit the opinions of the general public. The period for soliciting the opinions shall not be less than 30 days.

Article 11 The people's governments at city and county level shall promptly publish the details of the solicited opinions and the expropriation and compensation plan modified on the basis of the opinions of the general public.
If the rebuilding of old urban areas requires the expropriation of houses and most of the expropriatees deem that the expropriation and compensation plan does not comply with the provisions hereof, the people's governments at city and county level shall organize a hearing consisting of the expropriatees and representatives of the general public and modify the plan according to the results of the hearing.

Article 12 Before making a decision to expropriate houses, the people's governments at city and county level shall conduct social stability risk evaluation in accordance with relevant provisions; if the house expropriation decision involves a large number of expropriatees, the decision shall be discussed and made at the executive meeting of the governments.
Before a house expropriation decision is made, expropriation compensation fees shall be allocated in full, deposited in special accounts and used for designated purposes.

Article 13 After making a decision to expropriate houses, the people's governments at city and county level shall announce the decision in a timely manner. The announcement shall specify the expropriation and compensation plan, the right to administrative reconsideration and administrative litigation, and other matters.
The people's governments at city and county level and house expropriation departments shall carry out properly the publicity and explanation work for house expropriation and compensation.
If houses are expropriated in accordance with the law, the land use right to the state-owned land on which the houses are built shall be taken back at the same time.

Article 14 Any expropriatees who are dissatisfied with the decision made by the people's governments at city and county level to expropriate their houses may either apply for administrative reconsideration or initiate an administration action in accordance with the law.

Article 15 House expropriation departments shall organize the investigation and registration of the ownership, locations, uses, building areas and other details of houses within the scope of house expropriation and the expropriatees shall provide assistance. The results of such investigation shall be disclosed to the expropriatees within the scope of house expropriation.

Article 16 After the scope of house expropriation is determined, no activities which unfairly increase compensation fees shall be carried out within the scope of house expropriation, such as building new houses, expanding existing houses, rebuilding existing houses, and changing the uses of existing houses; if such activities are carried out in violation of the applicable provisions, no compensation shall be made therefor.
House expropriation departments shall notify in writing the relevant departments of the matters specified in the foregoing paragraph and to suspend relevant formalities therefor. The written notice of suspension of relevant formalities shall indicate the period of suspension. The maximum period of suspension shall not exceed one year.

Chapter III Compensation

Article 17 Compensation made to expropriatees by the people's governments at city and county level that make a decision to expropriate their houses shall include:
1. Compensation for the value of the houses to be expropriated;
2. Compensation for removal and temporary placement caused by the expropriation of the houses; and
3. Compensation for losses from closure of business operation caused by the expropriation of the houses.
The people's governments at city and county level shall work out allowance and reward methods to grant allowance and rewards to expropriatees.

Article 18 If houses of individuals are to be expropriated and the expropriatees meet the conditions for low-income housing, the people's governments at city and county level that make the decision to expropriate the houses shall give first priority to providing low-income houses to the expropriatees. The specific measures shall be worked out by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 19 Compensation for the value of the houses to be expropriated shall not be lower than the market price of houses similar to those to be expropriated on the date when the house expropriation decision is announced. The value of the houses to be expropriated shall be evaluated and fixed by a real estate appraisal institution with the corresponding qualifications according to house expropriation appraisal methods.
Any party that objects to the evaluated value of the houses to be expropriated may apply to the real estate appraisal institution to review the appraisal. If such party objects to the results of such review, the party may apply to the real estate appraisal expert committee for certification thereof.
The competent housing and urban-rural development department of the State Council shall work out house expropriation e appraisal measures and shall, in the course of doing so, solicit opinions from the general public.

Article 20 A real estate appraisal institution shall be selected by expropriatees through consultation; If the consultation fails, a real estate appraisal institution shall be determined by a majority of the expropriatees, random selection and other means. The specific measures shall be worked out by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.
A real estate appraisal institution shall carry out house expropriate e appraisal work in an independent, impartial and equitable manner and no entity or individual may interfere with such work.

Article 21 As compensation for houses to be expropriated, expropriatees may select either cash compensation or exchange of house ownership.
If the expropriatees select exchange of house ownership, the people's governments at city and county level shall provide houses used for ownership exchange and, together with the expropriatees, calculate and settle the difference between the value of the houses expropriated and the value of the houses used for ownership exchange.
If houses of individuals are to expropriated for the rebuilding of old urban areas and the expropriatees select to exchange ownership of their houses with the ownership of houses built on the rebuilt areas, the people's governments at city and county level which make the decision to expropriate their houses shall provide houses built on the rebuilt areas or nearby areas.

Article 22 If any expropriatees need to make a removal due to expropriation of their houses, house expropriation departments shall pay removal expenses to the expropriatees; if any expropriatees select house ownership exchange, house expropriation departments shall, before the delivery of houses used for ownership exchange, pay to the expropriatees temporary placement fees or provide transitional houses.

Article 23 Compensation for losses from closure of business operation caused by expropriation of houses shall be determined according to factors such as the profits of the houses before expropriation and the period of business operation closure. The specific measures shall be worked out by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 24 The people's governments at city and county level and their relevant departments shall strengthen supervision and administration of construction activities and punish any party in accordance with the law that carry out construction activities in violation of urban-rural plans.
The people's governments at city and county level shall, before making a decision to expropriate houses, organize relevant departments to investigate, determine and deal with pursuant to the law unregistered buildings within the scope of house expropriation. Compensation shall be made for buildings which are determined as lawful buildings and temporary buildings for which the approved period has not expired. Compensation shall not be made for buildings which are determined as unlawful buildings and temporary buildings for which the approved period has expired.

Article 25 A house expropriation department and an expropriatee shall, in accordance with the provisions hereof, conclude a compensation agreement with respect to mode of compensation, amount of compensation and term of payment, location and area of house used for ownership exchange, removal expenses, temporary placement expenses or transitional house, losses from closure of business operation, period for moving, mode of transition, period of transition, and other maters.
After a compensation agreement is concluded, if either party thereto fails to its obligations under the compensation agreement, the other party thereto may initiate a legal action in accordance with the law.

Article 26 If a house expropriation department and an expropriatee fails to reach a compensation agreement within the time limit for agreement conclusion fixed in the expropriation and compensation plan or the owner of the house to be expropriated is not clear, the house expropriation department shall ask the people's government at city and county level which make the decision to expropriate the house to make a compensation decision in accordance with the provisions hereof and the expropriation and compensation plan and make an announcement within the scope of house expropriation.
The compensation decision shall be equitable and contain matters relating to the compensation agreement specified in Paragraph 1 of Article 25 hereof.
If the expropriatee is dissatisfied with the compensation decision, he or it may either apply for administrative reconsideration or initiate an administrative action in accordance with the law.

Article 27 To carry out house expropriation, compensation shall be first made and then a removal made.
After the people's governments at city and county level which make a decision to expropriate houses make compensation to expropriatees, the expropriatees shall complete the removal within the removal period agreed upon in the compensation agreement or specified in the compensation decision.
No entity or individual may, by way of such illegal means as violence, threat, or cutting off the supply of water, heating, gas or power, and blocking traffic, compel the expropriatees to make a removal. Construction entities are prohibited from participating in removal activities.

Article 28 If any expropriatees neither apply for administrative reconsideration nor initiate an administrative action within the statutory time limit and fail to make a removal within the period specified in the compensation decision, the people's governments at city and county level which make the decision to expropriate the houses shall, in accordance with the law, apply to the people's court to take enforcement action.
Materials such as amount of compensation, numbers of special deposit accounts, locations and areas of houses used for ownership exchange and transitional houses shall be attached to the application for enforcement action.

Article 29 House expropriation departments shall establish house expropriation and compensation archives in accordance with the law and disclose the details of family-based compensation to expropriatees within the scope of house expropriation.
Audit organs shall strengthen supervision over the administration and use of expropriation compensation fees and publish the audit results.

Chapter IV Legal Liability

Article 30 If personnel of the people's governments at city and county level and house expropriation departments, in the course of house expropriation and compensation work, fail to perform their duties specified herein, or abuse their powers, neglect their duties, bend the law for personal gains and engage in fraud, or the aforesaid people's governments or the people's government at a higher level shall order them to make corrections and circulate a notice of criticism; if any losses are incurred thereby, they shall bear compensation liability pursuant to the law; the principal person directly responsible therefor and other persons directly responsible therefor shall be sanctioned in accordance with the law; if the circumstances involved constitute a crime, they shall be investigated for criminal liability in accordance with the law.

Article 31 If personnel of the people's governments at city and county level and house expropriation departments, by way of such illegal means as violence, threat, or cutting off the supply of water, heating, gas or power, and blocking traffic, compel any expropriatees to make a removal and any losses are incurred thereby, they shall bear compensation liability pursuant to the law; if the principal person directly responsible therefor and other persons directly responsible therefore commit a crime, they shall be investigated for criminal liability in accordance with the law; if the circumstances involved do not constitute a crime, they shall be sanctioned in accordance with the law; if they commit an act violating administration of public security, they shall be given public security administration penalties.

Article 32 If any person obstructs by way of violence, threat and other means house expropriation and compensation work which is carried out in accordance with the law and the circumstances involved constitute a crime, he or she shall be investigated for criminal liability in accordance with the law; if he or she commits an act violating administration of public security, he or she shall be given public security administration penalties.

Article 33 If personnel of the people's governments at city and county level and house expropriation departments practice graft with respect to, misappropriate, share illicitly, hold back, default in paying expropriation compensation fees, they shall be ordered to make corrections, return relevant money, and return their illegal gains within a stated period and a notice of criticism shall be circulated against and a warning given to the relevant units responsible therefore; if any losses are incurred thereby, they shall bear compensation liability pursuant to the law; if the principal person directly responsible therefor and other persons directly responsible therefore commit a crime, they shall be investigated for criminal liability in accordance with the law; if the circumstances involved do not constitute a crime, they shall be sanctioned in accordance with the law.

Article 34 If a real estate appraisal institution or a real estate appraiser issues a false or materially erroneous appraisal report, the certificate-issuing organ shall order it or him to make corrections within a given time limit, give a warning, impose a fine of between CNY50,000 and CNY200,000 on the real estate appraisal institution or a fine of between CNY10,000 and CNY30,000 on the real estate appraiser, and make entry into the record of credit; if the circumstances involved are serious, the certificate of qualifications and certification of registration shall be revoked; if any losses are incurred thereby, it or he shall bear compensation liability; if the circumstances involved constitute a crime, it or he shall be investigated for criminal liability in accordance with the law.

Chapter V Supplementary Provisions

Article 35 These Regulations shall come into effect on the date of promulgation. The Regulations on the Administrative Regulations on the Demolition and Relocation of Urban Housing issued by the state council on June 13, 2001 shall be repealed simultaneously. Before these Regulations come into effect, project for which the house dismantlement and removal permit has been obtained in accordance with the law shall proceed with the former provisions, but the government shall not order relevant departments to force the dismantlement and removal of the houses.