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 Judicial 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 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 trial, this interpretation is formulated to address legal issues in the adjudication of contract disputes involving state-owned land use rights.
Article 1: Contract Disputes over Land Use Rights Transfer
The land use rights transfer contract referred to in this interpretation means an agreement in which the land administration department of a municipal or county government, as the transferring party, transfers the state-owned land use rights to the transferring party within a certain term, and the transferring party pays the land use rights transfer fee.
Article 2: Land Use Rights Transfer Contracts with Development Zone Administrative Committees
Land use rights transfer contracts entered into between the development zone administrative committee, as the transferring party, and the transferring 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 transferring party, which were ratified by the land administration department of the municipal or county government before the lawsuit was filed, may be deemed valid.
Article 3: Contracts with Lower Transfer Fees
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, such requests shall be supported. If the transferring party objects to making up the difference based on the market appraisal price and requests to terminate the contract, such requests shall also be supported. The losses caused by this shall be borne by the parties in accordance with their respective faults.
Article 4: Failure to Transfer Land Due to Lack of Approval
If the transferring party of the land use rights transfer contract fails to transfer the land due to the failure to obtain approval for the land use rights transfer, and the transferring party requests to terminate the contract, such requests shall be supported.
Article 5: Changes in Land Use with Approval
If the transferring party, with the approval 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, such requests shall be supported.
Article 6: Unauthorized Changes in Land Use