Civil Trial Guidance and Reference. 2005. Issue 2: Total Issue 22

Author: Supreme People's Court Civil Trial First Tribunal
Publisher:
Publish Date: 2005-09-01
Features: New Interpretation Supreme People's Court Interpretation on the Application of Laws in Cases of Contract Disputes Involving State-owned Land Use Rights (Adopted at the 1334th Meeting of the Supreme People's Court's Judicial Committee on November 23, 2004) No. [2005] 5 of the Supreme People's Court
According to the General Principles of the Civil Law of the People's Republic of China, the Contract Law of the People's Republic of China, the Land Administration Law of the People's Republic of China, the Urban and Rural Real Estate Administration Law of the People's Republic of China, and other relevant laws and regulations, combined with the practice of civil adjudication, this interpretation is formulated to address legal issues in adjudicating cases of contract disputes involving state-owned land use rights.
I. Disputes over Land Use Rights Transfer Contracts
Article 1. The Land Use Rights Transfer Contract referred to in this interpretation means an agreement where a land management department of a municipal or county government, as the transferring party, transfers the state-owned land use rights to the acquiring party within a certain term, and the acquiring party pays the land use rights transfer fee.
Article 2. Land Use Rights Transfer Contracts entered into between the development zone administrative committee, as the transferring party, and the acquiring party, shall be deemed invalid. Prior to the implementation of this interpretation, Land Use Rights Transfer Contracts entered into between the development zone administrative committee, as the transferring party, and the acquiring party, which were ratified by the land management department of the municipal or county government before the lawsuit was filed, may be deemed valid.
Article 3. For land use rights transferred through agreement with the approval of the municipal or county government, if the land use rights transfer fee is lower than the lowest price determined by the local government in accordance with national regulations at the time the contract was concluded, the price clause stipulated in the Land Use Rights Transfer Contract shall be deemed invalid. If the parties request to pay the land use rights transfer fee based on the market appraisal price at the time the contract was concluded, this shall be supported. If the acquiring party refuses to make up the difference based on the market appraisal price and requests to terminate the contract, this shall also be supported. The losses caused by this shall be borne by the parties according to their respective faults.
Article 4. If the transferring party of the Land Use Rights Transfer Contract fails to obtain the approval for land use rights transfer and is unable to deliver the land, and the acquiring party requests to terminate the contract, this shall be supported.
Article 5. If the acquiring party, with the consent of the transferring party and the urban planning administrative department of the municipal or county government, alters the land use as stipulated in the Land Use Rights Transfer Contract, and the parties request to adjust the land use rights transfer fee based on the standard of the same land use at the time of the lawsuit, this shall be supported.
Article 6. If the acquiring party alters the land use as stipulated in the Land Use Rights Transfer Contract