Real Estate Law In China For Foreign Investors
Posted on February 20, 2008 - Filed Under Legal and Law | Leave a Comment
What the Law Says
In China, neither domestic companies nor Foreign Invested
Enterprises may own land outright; instead they own Land Use
Rights. There are two kinds of Land Use Rights – Allocated and
Granted. In comparison with Western common law concepts,
Allocated Land Use Rights are in some way similar to
leaseholds, and Granted Land Use Rights are in some ways
similar to life estates.
Allocated Land Use Rights are generally provided by the
government for an indefinite period (usually to state-owned
entities) and cannot be pledged, mortgaged, leased, or
transferred by the user. Furthermore, Allocated land can be
reclaimed by the government at any time.