Criteria on the Remising of State-owned Land Use Right on the basis of Agreement (For Trial Implementation)

Guo Tu Zi Fa [2006] No. 114
May 31, 2006

(Promulgated by Guo Tu Zi Fa [2006] No. 114 on May 31,2006 and shall enter into force as of August 1, 2006)

Catalogue
Foreword

1. Scope of Application

2. Quotative Criteria and Documents

3. Basis

4. General Rules

5. Selling Agreement in the Link of Land Supply

6. Application of a User of Allocated or Leased Land for on the basis of Agreement Selling

7. On the basis of Agreement Selling of the Use Right of Allocated Land

8. Dealing with the Conditions for Land Use, Such as Alteration of the Purpose of Use of the Assigned Land

Annex A Model Text Formatting for “Letter of Intent on the Selling State-owned Land Use right”

Annex B Model Text Formatting for “Notice on Granting to Transfer of the Use right of Allocated Land”
Foreword

For the purpose of perfecting the remising system of state-owned land use right, regulating the selling state-owned land use right
on the basis of agreement, unifying the relevant procedures and standards, strengthening the management of state-owned land assets
and promoting the construction of the land market, the current Criteria is formulated according to the Law of the People’s Republic
of China on Land Administration, the Law of the People’s Republic of China on the Administration of Urban Real Estate, the Interim
Regulation of the People’s Republic of China on the Assigning and Transferring Urban State-owned Land Use Right, and the Provisions
on the Remising on the Basis of Agreement of State-owned Land Use Right.

Annexes A and B herein are the model text formats which are required in the remising on the basis of agreement.

The current Criteria has been formulated and put under charge of the Ministry of Land and Resources.

The sketching-out entities of the current Criteria are: the Administrative Department of Land Utilization of the Ministry of Land
and Resources, the Land Sort-out Center of the Ministry of Land and Resources, the Administrative Department of Land and Resources
of Liaoning Province, the Administrative Department of Land and Resources of Heilongjiang Province and the Administrative Department
of Land and Resources of Jiangsu Province.

The chief sketching-out personnel of the current Criteria are: Liao Yonglin, Leng Hongzhi, Yue Xiaowu, Lei Aixian, Gao Yong, Xie Liangxiong,
Wu Di, Song Yubo, Mou Aofeng, Ye Weidong, Zhong Songyi, Lin Lisen, Shen Liang, Chen Meiying, Zhou Xu, Shen Fei and Zhang Fang. The
sketch out participants (arranged in a sequence with regard to the number of strokes of their surnames): Yu Shizhuan, Ma Shang, Wang
Wei, Che Changzhi, Deng Yuefang, Ye Yuanpeng, Ye dong, Ren Zhaohong, Guan Wenrong, Liu Xianqi, Liu Xiangyuan, Liu Ruiping, Zhu Yude,
Wen Hongxi, Yan Zheng, Wu Yonggao, Wu Haiyang, Zhang Wanzhong, Zhang Yingqi, Li Yanrong, Li Xiaojuan, Li Xiaobin, Shu Kexin, Yang
Yufang, Yang Jiangzheng, Xiao Jianjun, Chen Yongzhen, Chen Guoqing, Lin Junheng, Luo Yanguang, Zhu Jun, Hu Libing, Hu Hongbing, Zhao
Chunhua, Hao Jihu, Gao Zhiyun, Xu Jianshe, Tu Gaokun, Qin Shuilong, Qian Yougen, Liang Hong, Huang Wenbo, Han Jianguo, Han Hongwei,
Jin Wei, Pan Honggao, Wei Cheng, Wei Lihua

The Ministry of Land and Resources is responsible for interpreting the current Criteria.

1.

Scope of Application

The remising on the basis of agreement of state-owned land use right within the People’s Republic of China shall be governed by the
current Criteria. The base of agreement lease and remising of other state-owned land rights shall be directed according to the current
Criteria.

2.

Quotative Criteria and Documents

The clauses included in the following Criteria and documents constitute an integral part of the articles of the current Criteria because
of their quotation. All the versions included herein shall be of effect with promulgation of the current Criteria. All the parties
that apply the current Criteria shall use the latest versions of the standards and documents followed:

Regulations on the Urban Land Evaluation (GB/T 18508-2001)

Model Text of “Contract on the Remising of State-owned Land Use Right” (Guo Tu Zi Fa [2000] No. 303)

Classification of the National Land (Guo Tu Zi Fa [2001] No. 255)

Guidepost of the Land Used for Industrial Construction Projects (Guo Tu Zi Fa [2004] No. 232)

3.

Basis

(1)

Land Administration Law of the People’s Republic of China

(2)

Urban Real Estate Administration Law of the People’s Republic of China

(3)

City Planning Law of the People’s Republic of China

(4)

Administrative License Law of the People’s Republic of China

(5)

Contract Law of the People￿￿s Republic of China

(6)

Interim Regulations of the People￿￿s Republic of Chin Concerning the Assignment and Transfer of the Right to the Use of the State-owned
Land in the Urban Areas

(7)

The Implementation Program of Setting up and Perfecting the System of Education, Bylaws and Supervision to Improve the Measures Against
Corruption(Zhong Fa [2005] No. 3)

(8)

Order No. 15 of the State Council on Reinforcing the Administration of State-owned Land Assets (Guo Fa [2001] No. 15)

(9)

The State Council’s Decision Concerning Intensifying Reform and Strengthening Land Administration (Guo Fa [2004] No. 28)

(10)

Provisions on the Remising on the basis of Agreement of State-owned Land Use Right (Decree No. 21 of the Ministry of Land and Resources)

4.

General Rules

4.1

Connotation of Remising on the basis of Agreement of State-owned Land Use Right

The term “remising on the basis of agreement of state-owned land use right” herein means an act whereby the administrative department
of land and resources at the municipal or county level transfers state-owned land use right to land users for a fixed number of years,
and the land users shall pay fees for the remising of state-owned land use right.

4.2

Principles of Remising of State-owned Land Use Right on the basis of Agreement

(1)

Being open, fair and impartial; and

(2)

Being Honest and Credible.

4.3

The Range of Remising of State-owned Land Use Right on the basis of Agreement

The situations are as follows where an remising of state-owned land use right may be directed by bringing an agreement to an end unless
it is set down by any law, regulation or rule that the ways of bid tendering, auction or hanging out a shingle shall be used:

(1)

Any land, excluding those used for commerce, tourism, entertainment and commercial residence, is only one intended land user after
a plan of land supply is released;

(2)

If an original user of any allocated or leased land applies for remising on the basis of agreement, it may use the means of ending
an agreement upon getting an approval according to law, unless it is defined clearly in the Decision on the Allocation of State-owned
Land, the Contract on the Lease of State-owned Land, or any law, provision or administrative regulation that the land use right shall
be return to new public remising again;

(3)

If an application for remising on the basis of agreement is filed for assigning the use right of allocated land, after an approval
is gotten according to law, the means of bringing an agreement to an end may be adopted unless it is defined clearly in the Decision
on the Allocation of State-owned Land, the Contract on the Lease of State-owned Land, any law, provision or administrative regulation
that the land use right shall be return to new public remising again;

(4)

The ways of bringing an agreement to an end may be adopted where a user of any assigned land applies for renewal of the land use right
and if the application is approved through examination; and

(5)

Under any other circumstance where it is defined clearly in any law, regulation or administrative provision that an remising on the
basis of agreement may be directed.

4.4

Organizations Management that Take upon the Remising of State-owned Land Use Right on the basis of Agreement

The remising on the basis of agreement of state-owned land use right shall be organized and carried out by the administrative department
of land and resources at the municipal or county level.

The way of collective decision-making shall be used for the remising of state-owned land use right. The administrative department
of land and resources at the municipal or county level may establish an institution responsible for the coordination and decision-making
of the remising of state-owned land use right in order to see to coordinate and cope with the relevant problems in the process of
remising and determine the relevant matters in a collective manner according to the real situation.

4.5

Arbitrament about Dispute on Prices of Remising on the basis of Agreement

As far as any land that is exclusively used for business infrastructure or mining is concerning, a ruling system for any dispute on
prices of remising on the basis of agreement shall be set up. In the process of remising on the basis of agreement of any land under
the aforesaid category and if an intended user cannot accord with the assignor with regard to the assigning price because the intended
user thinks that the assigning price presented by the assignor is higher evidently than the market price of land, it may apply to
the administrative department of land and resources at the next higher level over the assignor for a ruling on the dispute on assigning
price.

4.6

Local Supplementary Provisions

A region may make supplementary provisions or detailed rules for the implementation of the present rules and present them to the administrative
department of land and resources at the next higher level for archival filing.

5.

Remising on the basis of Agreement in the Link of Land Supply

5.1

The General Processes for Remising on the basis of Agreement of State-owned Land Use Right in the Link of Land Supply

(1)

Disclosing remising information, accepting applications for land use and determining the way of land supply;

(2)

Formulating a plan of remising on the basis of agreement;

(3)

Evaluating the land price and determining the base price;

(4)

Reporting for approval the plan of remising on the basis of agreement and the base price;

(5)

Negotiating and concluding a Letter of Intent;

(6)

Publication;

(7)

Bringing an agreement to an end on remising and publicizing the result of remising;

(8)

Verifying an Approval for Construction Land and delivering the land;

(9)

Delivering the land for land registration.

5.2

Publishing the Information on Remising, Accepting Applications for Land Use and Determining the Way of Land Supply

5.2.1

The administrative department of land and resources at the municipal or county level shall publicize to the general public the approved
remising plan of state-owned land use right, a region with mature conditions may detail the remising plan of state-owned land use
right by stages to the specific location and plots and publicize the relevant information to the general public in a timely manner
according to the progress of land supply. The information on a remising plan of state-owned land use right as well as the detailed
location and plots shall be publicized via www.landchina.com simultaneously.

5.2.2

The administrative department of land and resources at the municipal or county level shall publicize the information on a remising
plan and detailed location and plots of state-owned land use right, and shall make clear simultaneously the way and method for one
to apply for land use, and publicly accept applications for land use.

5.2.3

An entity or individual that requests for land use (hereinafter referred to as an intended land user) shall submit an application
for land use to the administrative department of land and resources at the municipal or county level according to an remising plan
of state-owned land use right and the information on detailed location and plots that have been publicized as well as based on the
demand of self-use land.

5.2.4

Within the prescribed time limit, the administrative department of land and resources at the municipal or county level may adopt the
means of remising on the basis of agreement if only one intended user applies for a plot, except for the operational land used for
commerce, tourism, entertainment and commercial residence. Where it cannot be determined whether a land falls within the scope of
remising on the basis of agreement remising or not, it may be determined by the institution responsible for the coordination and
decision-making of remising on the basis of agreement of state-owned land use right.

5.3

Formulating a Plan of Remising on the basis of Agreement

The administrative department of land and resources at the municipal or county level shall formulate an remising plan of state-owned
land use right in collaboration with such departments as planning department and according to its remising plan of state-owned land
use right, urban planning and the type and scale of the land that an intended applicant has applied for.

A plan of remising on the basis of agreement shall include: location of the to-be-assigned plot, boundary, purpose of use, area, fixed
number of year, demands for land use, time of land supply and way of land supply, etc..

5.4

Evaluating the Land Price and Determining the Base Price

5.4.1

Evaluating the Land Price

The administrative department of land and resources at the municipal or county level shall organized an evaluation on the normal market
price of the to-be-assigned plot based on the status of the to-be-assigned plot and according to the Regulations on the Urban Land
Price Evaluation.

The land price evaluation shall be directed by the administrative department of land and resources at the municipal or county level
or by the affiliated public institutions thereunder or may, be entrusted to evaluation institutions of land or real estate with the
qualification of land evaluation according to the actual demands.

5.4.2

Determination of the Base Price

The administrative department of land and resources at the municipal or county level or the institution in charge of the coordination
and decision-making of state-owned land use right shall make a collective decision so as to determine the base price of remising
on the basis of agreement according to the result of land evaluation, industrial policies and the land market.

The base price of remising on the basis of agreement shall not be any lower than the minimum price of remising on the basis of agreement
within the region where the plot is located.

Any base price of remising shall, once determined, be kept confidential before a remising is signed and no entity or individual may
divulge it.

5.5

Reporting Plan of Remising on the basis of Agreement and the Base Price for Approval

The administrative department of land and resources at the municipal or county level shall, according to the relevant provisions,
report the plan of remising on the basis of agreement and the base price to the competent people’s government for approval.

5.6

Negotiation and Conclusion of Letter of Intent

The administrative department of land and resources at the municipal or county level shall direct negotiate with the intended land
user on the price of land remising in light of the approved plan of remising on the basis of agreement and the base price. The negotiation
representatives of the administrative department of land and resources shall be over 2 persons in the process of negotiations.

Upon the consensus of both parties concerned through negotiation, the administrative department of land and resources at the municipal
or county level shall sign with the intended land user a Letter of Intent on the Remising of State-owned Land Use Right if it is
agreed that the assigning price shall be no less than the base price.

5.7

Publication

5.7.1

The administrative department of land and resources at the municipal or county level shall, after a Letter of Intent on the Remising
of State-owned Land Use Right is concluded, publicize such contents as the location, function of use, area, term for remising, demands
for land use, intended land users and the sketching-out price of remising in such designated places as the local tangible land market
as well as on the website www.landchina.com, wherein the method and way of feedback shall be given indications. The publication shall
be over 5 days.

5.7.2

During the period of publication, under the condition of any dissidence and if the administrative department of land and resources
at the municipal or county level does find any violation of the relevant laws and regulations in the process of examination, the
procedures for remising on the basis of agreement shall be ended.

5.8

Conclusion of Contract on Remising and Publication of Remising Results

Upon expiration of the publication period, under the condition of no dissidence or under the condition of any dissidence yet if the
administrative department of land and resources at the municipal or county level does not find any violation of any law or regulation
in the process of examination, the administrative department of land and resources at the municipal or county level shall sign with
the intended land user a Contract on the Remising of State-owned Land Use Right according to the commitments of the Letter of Intent
on the Remising of State-owned Land Use Right.

The administrative department of land and resources at the municipal or county level shall publicize the results of remising on the
basis of agreement to the general public on the website www.landchina.com as well as in such designated places as the tangible land
market within 7 days as of the day when a Contract on the Remising of State-owned Land Use Right is signed, in order to accept social
supervision.

The remising results to be publicized shall cover the location of land, area, purpose of use, development, grade of land, capacity,
term for remising, way of supply, assignee, trading price and trading time.

5.9

Verification and Issuance of the Land Using Permit for Construction and Delivery of Land

The administrative department of land and resources at the municipal or county level shall verify and issue the Land Using Permit
for Construction and give the land to the relevant assignee according to the schedule and term as specified in the Contract on the
Remising of State-owned Land Use Right and the Land Using Permit for Construction.

5.10

Coping with of Land Registration

An assignee shall, according to the provisions of the Contract on the Remising of State-owned Land Use Right, apply for dealing with
the formalities for land registration, collect the License for State-owned Land Use in order to get the land use right.

5.11

Archival Filing of Materials

After all the formalities for remising on the basis of agreement are gone through, the administrative department of land and resources
at the municipal or county level shall, according to the relevant provisions, put in order and place on archives the relevant materials
and documents in such links as the publication of remising information, application for land use, examination and approval, negotiation,
publicity and conclusion of agreement in the process of land remising. The materials of land remising that shall be placed on archives
include:

(1)

Application materials for land use;

(2)

Conditions of the land plot and the demands of the planning indicators for the land plot;

(3)

Evaluation Report on Land;

(4)

The base price of land remising and records of collective decision-making;

(5)

Scheme of remising on the basis of agreement;

(6)

Reply to a scheme of remising;

(7)

Notes of negotiations;

(8)

Letter of Intent on Remising on the basis of Agreement

(9)

Publication materials of remising on the basis of agreement;

(10)

Contract on the Remising of State-owned Land Use Right;

(11)

Announcement Materials on the Results of Remising on the basis of Agreement;

(12)

Verification and Issuance of the Land Using Permit for Construction as well as the relevant materials of land delivery; and

(13)

Other materials that shall be placed on archives.

6.

Application of Original User of any Allocated or Leased Land for Remising on the basis of Agreement

6.1

Where an original user of any allocated or leased land applies for remising on the basis of agreement, it shall be coped with according
to the following circumstances:

(1)

Where such demands for land use as the purpose of land use are not required to be altered and if the demands for planning are satisfied,
it shall be reported to the people’s government at the municipal or county level for approval and may be settled by means of remising
on the basis of agreement

(2)

Where such 7 demands for use as the purpose of land use can be altered upon approval of the administrative department of planning,
the relevant formalities for remising on the basis of agreement may be coped with upon approval of the people’s government at the
municipal or county level, unless it is defined clearly in the Decision on the Allocation of State-owned Land, the Contract on the
Lease of State-owned Land, any relevant law, regulation or administrative regulation that the use right of allocated land shall be
return to new public remising again.

6.2

Application and Acceptance

6.2.1

It or he shall apply to the administrative department of land and resources at the municipal or county level upon the following relevant
materials if the original user of any allocated or leased land applies for dealing with the formalities for remising:

(1)

An Application;

(2)

A License for State-owned Land Use, a Decision on the Allocation of State-owned Land or a Contract of the Lease of State-owned Land;

(3)

Certification of the property right of above-ground structures, constructional work as well as other attaching;

(4)

Effective identity supporting documents of the original user to the land use right;

(5)

Approval documents issued by the administrative department of planning on changing the purpose of land use; and

(6)

Any other relevant material as defined clearly by any law, regulation or administrative regulation to be presented.

6.2.2

It shall implement a preliminary examination on the application materials and decide whether to accept it or not after the administrative
department of land and resources at the municipal or county level accepts an application.

6.3

Examination and Making Sure of a Plan of Remising on the basis of Agreement

6.3.1

Examination

It shall direct an examination on the application materials according to the relevant provisions, and consult the opinions of the
administrative department of planning regarding the purpose of use of the plot after the administrative department of land and resources
at the municipal or county level accepts an application. Where, upon examination, an application for plot use abides by the planning
and meets the demands for dealing with the formalities for remising on the basis of agreement the administrative department of land
and resources at the municipal or county level shall carry out a land price evaluation, ascertain the sum of land remising and sketch
out a plan of remising on the basis of agreement.

6.3.2

Land Price Evaluation

The administrative department of land and resources at the municipal or county level shall carry out an evaluation on the market price
of remising of the applied plot as well as the price of rights and interests of the use right of allocated land or the market price
of the use right of the leased land. The base date of evaluation shall be regarded as the time of the remising. Where such demands
for land use as the purpose of land use are altered, the price of the land use right shall be evaluated according to the new terms
of demands for land use.

6.3.3

Verification of the Remising Sum and Sketching-out of the Remising Plan

The administrative department of land and resources at the municipal or county level or the institution in charge of coordination
and decision-making of state-owned land use right shall, according to the result of land price evaluation, industrial policies and
the current land market, make a collective decision, determine the sum of remising on the basis of agreement of land in a collective
manner and sketch out a plan of remising on the basis of agreement.

6.3.3.1

An applicant shall pay the price of remising on the basis of agreement of the land use right according to the following formulas:

(1)

Where such demands for land use as the purpose of use have not been changed

Payable Sum for the Remising of Land Use Right =Market Price of Remising of the Use Right of the to-be-assigned Land ￿C Price of Rights
and Interests of the Use Right of Allocated Land or the Market Price of the Use Right of Leased Land

(2)

Where such demands for land use as the purpose of use have been changed

Payable Sum for the Remising of Land Use Right = Market Price for Remising of the Use Right of the to-be-assigned Land on the New
Terms of Demands for Land Use – Price of Rights and Interests of the Use Right of Allocated Land or the Market Price of the Use Right
of Leased Land on the Original Terms of Demands for Land Use

6.3.3.2

A plan of remising on the basis of agreement shall cover the location, boundary, purpose of use, area, term, time of remising as well
as the payable sum for the remising of the plot subject to the dealing with of formalities for remising.

6.4

Report of Remising Plan for Approval

The administrative department of land and resources at the municipal or county level shall report the plan of remising on the basis
of agreement to the people’s government at the municipal or county level for examination and approval according to the relevant provisions.

6.5

Conclusion of Remising Contract and Publication of Remising Results

After the people’s government at the municipal or county level approves the plan of remising on the basis of agreement, the relevant
administrative department of land and resources shall recede the Decision on the Allocation of State-owned Land from the land user
or relieve the Contract on the Lease of State-owned Land, nullify the registration of land, take back the original land certificate
and sign with the applicant a Contract on the Remising of State-owned Land Use Right according to the approved plan.

After a Contract on the Remising of State-owned Land Use Right is signed, the administrative department of land and resources at the
municipal or county level shall publicize the results of remising according to Provision 5.8.

6.6

Dealing with of Land Registration according to Provision 5.10

6.7

Archival Filing of Materials

After all the formalities for remising on the basis of agreement are gone through, the relevant bureau of land and resources at the
municipal or county level shall arrange the relevant materials and documents in such links as the application for land use, examination
and approval and conclusion of contract in the process of land remising and place them on archives according to the relevant provisions.
The materials of land remising that shall be placed on archives include:

(1)

Application materials of an applicant;

(2)

Land conditions and the relevant materials;

(3)

Materials of land price evaluation;

(4)

Ascertaining materials of the sum of remising;

(5)

Plan of remising on the basis of agreement;

(6)

Reply to the remising plan;

(7)

Contract on the Remising of State-owned Land Use Right;

(8)

Announcement materials of remising on the basis of agreement; and

(9)

Other materials that shall be placed on archives.

7.

Remising on the basis of Agreement for the Transfer of the Use Right of Allocated Land

7.1

For an application for the transfer of the use right of allocated land, it shall be subject to the approval of the people’s government
at the municipal or county level and the relevant assignee may, upon getting approval, direct an remising on the basis of agreement,
unless it is defined clearly in the Decision on the Allocation of State-owned Land, or any law, regulation or administrative regulation
that the use right of allocated land shall be receded for new public remising.

7.2

Application and Acceptance

7.2.1

An original land user shall apply to the administrative department of land and resources at the municipal or county level for transfer
of the use right of allocated land with the following relevant materials:

(1)

An Application;

(2)

Certificate of State-owned Land Use Right and Decision on the Allocation of State-owned Land;

(3)

Certification on the property rights of above-ground structures, constructional work as well as other attaching;

(4)

Effective identity supporting documents of the original land user;

(5)

Written opinions of co-owners, in case any real estate is co-owned; and

(6)

Any other relevant material as defined clearly by any law, provision or administrative regulation to be presented.

7.2.2

After receiving an application, the administrative department of land and resources at the municipal or county level shall direct
a preliminary examination on the application materials which an applicant has presented and decide whether to accept it.

7.3

Examination and Determination of a Plan of Remising on the basis of Agreement

7.3.1

Examination

After accepting an application, the administrative department of land and resources at the municipal or county level shall direct
an examination on the application materials as presented by the applicant according to the relevant provisions and consult the opinions
of the administrative department of planning in term of