Section 5

Intermediary Service Agencies

Article 57 Intermediary service agencies for real estate include real estate consultant agencies, real estate price appraisal agencies and real estate broking agencies.

Article 58 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 59 The State shall practise a qualification authentication system for real estate price appraisers.

Chapter V

Administration of Real Estate Ownership Registration

Article 60 The State shall practise a system of registration and certification for land-use right and ownership of houses.

Article 61 Where the land-use right is to be obtained by means 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 has been built on the land for real estate development obtained pursuant to the law, an application for registration shall, on the 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 a certificate of the ownership of the house after verification.

Where transfer or modification of real estate is to be 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 modified ownership of the house, 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 such laws shall apply.

Article 62 Where real estate is to be 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 have been obtained from disposal of mortgaged real estate, the change of ownership for the land-use right and the house shall be registered in accordance with the provisions of this Chapter.

Article 63 Where a department of the local people’s government at or above the county level is in charge of both housing administration and land administration as determined by the people’s government of the relevant province, autonomous region, or municipality directly under the Central Government, such department may make and issue the uniform certificate of the ownership of real estate, in which the confirmation and modification of the ownership of houses and the land-use right of the house site shall be recorded respectively in accordance with the provisions of Article 60 of this Law.

Chapter VI

Legal Liability

Article 64 Where anyone, in violation of the provisions of Article 10 or Article 11 of this Law, approves without authorization the granting of land-use right or grants land-use right without due approval for development of real estate, the person who is held responsible shall be given an administrative sanction by an organ at a higher level or by the unit to which he belongs.

Article 65 Whoever, in violation of the provisions of Article 29 of this Law, engages in business of real estate development without obtaining a business license shall be ordered to stop activities of real estate development and confiscated of his unlawful proceeds and may be concurrently imposed a fine by the administrative department for industry and commerce under the people’s government at or above the county level.

Article 66 Whoever, in violation of the provisions of paragraph 1 of Article 38 of this Law, transfers the land-use right shall be confiscated of his unlawful proceeds and may be concurrently imposed a fine by the department of land administration under the people’s government at or above the county level.

Article 67 Whoever, in violation of the provisions of paragraph 1 of Article 39 of this Law, transfers real estate shall be ordered to pay the fees for the granting of the land-use right, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the department of land administration under the people’s government at or above the county level.

Article 68 Whoever, in violation of the provisions of paragraph 1 of Article 44 of this Law, pre-sells commercial houses shall be ordered to stop activities of presale, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the department of housing administration under the people’s government at or above the county level.

Article 69 Whoever, in violation of the provisions of Article 57 of this Law, engages in intermediary services for real estate business without obtaining a business license shall be ordered to stop activities of intermediary services for real estate business, confiscated of his unlawful proceeds and may concurrently be imposed a fine by the administrative department for industry and commerce under the people’s government at or above the county level.

Article 70 Whoever collects fees from a real estate development enterprise without the basis of laws, rules and regulations shall be ordered by the organ at a higher level to return the fees thus collected; if the circumstances are serious, the person who is held directly responsible shall be given an administrative sanction by the organ at a higher level or by the unit to which he belongs.

Article 71 Where functionaries of departments of housing administration or land administration commit negligence of duty or abuse of power and the case constitutes a crime, they shall be investigated for criminal responsibilities in accordance with the law; if the case does not constitute a crime, they shall be given administrative sanctions.

Where functionaries of departments of housing administration or land administration take advantage of their functions and powers to extort money or properties from others or to illegally accept money or properties from others, thereby seeking gains for others, and the case constitutes a crime, they shall be investigated for criminal responsibilities in accordance with the supplementary provisions on punishing crimes of embezzlement and bribery; if the case does not constitute a crime, they shall be given administrative sanctions.

Chapter VII

Supplementary Provisions

Article 72 This Law shall be applied mutatis mutandis in obtaining the land-use right for development of real estate, engaging in development of real estate and transaction of real estate, and exercising administration of real estate in the State-owned land outside of a planned urban district.

Article 73 This Law shall go into effect as of January 1, 1995.

The English translation is for reference only and if there is any discrepancy, the Chinese version shall prevail.