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Changes in property ownership? [Copy link] 中文

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Post time 2015-12-22 10:28:47 |Display all floors
We are curently apartment hunting and are being informed by a property agent that buying the lease for a property has now ended. I have not seen any mention of this in the news and it does seem to be somewhat anti communist where land is owned by "the people" not the person (far be it for me to suggest that property agents might provide incorrect information). I believe the only land actually owned is by some farmers.

To my understanding when you buy a property you are actually buying the building but leasing the land.  The length of the lease is determined by the property developer and the local goverment at the time of construction and can be anything from 40 to 70 years.

Does anyone have any information on this?

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Post time 2015-12-24 21:24:20 |Display all floors
To the best of my belief, the government still owns ALL the land and holds it in trust for the people. From time to time they decide to develop a parcel of land so they lease it to a developer for a specified purpose such as accomodation. The developer then builds accommodation on the site and is free to lease it to private individuals. The private individuals may in turn sell their leases or rent the property to a third party. The individuals are not assigned control of the land.

The length of the lease is determined by the nature of the asset. For example, accommodation is typically awarded 70 years whereas agricultural leases get about 35 years I think. If you buy the lease on a second hand property then you are buying the residue of the lease. e.g. roughly 70 years less the age of the building.

Different regional governments have set their own regulations concerning the leasing of property. Foreigners, depending on which city you live in, are also subject to an additional set of regulations.

I jointly own an apartment with my wife in China and she has not heard of anything that prohibits the sale of leases although I have hear a few years back that foreigners signing new leases require a Chinese name now for admin purposes and there may well be restrictions to the number of accomodations you can lease as a foreigner. My guess is that you might be at the blunt end of a local regulation, possibly concerning foreigners or simply with regard to the leases that are being issued to property developers in your area. Give it 6 months and someone will change the regulations again to match the market conditions at the time. I would ask this agent to spell it out for you exactly why you cannot lease a property - can you lease one in a different building, different city etc. If you can no longer lease then is it because you are a foreigner? Maybe you need a partnership with a Chinese national? What are your options if you cannot lease?

When the lease expires it may be possible to get an extension/renewal depending on what plans the government and the developer may have for the land and the condition of the property etc. If either the government or the developer do not wish you to renew/extend your lease then it seems normal for compensation to be offered which may or may not include alternative accommodation or cash.

Farmers do not own the land but in recent years they have been allowed to sell the residue of their lease and maybe even be able to raise capital against it.

(mostly harmless)

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Post time 2015-12-26 11:44:17 |Display all floors
This post was edited by Laowai2? at 2015-12-26 11:47
fatdragon Post time: 2015-12-24 21:24
To the best of my belief, the government still owns ALL the land and holds it in trust for the peopl ...


There is no problem in buying the apartment, in fact I'm getting daily phone calls from the agent with ever increasingly better deals. What they seem to be saying is that the leasing system has ended which I don't believe. At a new development the apts have the standard 70 year lease which seems to prove that the agent (or the translation) is incorrect.

The rules for foreigners seems to change like the wind and depends on the governments' efforts in trying to control supply, prices and demand. I think the last rule in GZ area was that foreigners can only buy one property to control speculation. There are hundreds if not thousands of owned but uninhabited apartments in GZ, many still naked (as my wife calls them) meaning unfinished.

Regarding the farmers, I understood that land that has always been farmed by the same family is effectively owned by them but cannot be sold. It can only be passed to members of the same family.

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Post time 2015-12-28 20:02:01 |Display all floors
I am 99% sure the lease system is still in place, we bought another property in Shanghai 5 months ago and it was then. Go to the Property Registration Office in your city and check with them, you will need to go there anyway if you buy.

As property sales have slowed down in China the agents are getting desperate as most of them work on a commission basis so needs sales to make wages.

The 70 years starts to count down when the place is built so if it is not a new place then the lease will be less than 70 years.

Shanghai only allows foreigners to buy one commercial and one residential property and only after they have been there for 2 years.

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Post time 2015-12-29 11:09:49 |Display all floors
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Post time 2015-12-29 13:46:19 |Display all floors
It sounds as these lease laws are governed and dictated by the locality.  My wife and I bought a new house in Handan three years ago.  At the time, the lease could only be in her name as I am a foreigner... and they didn't allow 2 people to be on the lease.  I had already been in Handan seven years and we had been married for six.  We put 60% down cash and financed the balance.  The bank required a whole bunch of documentation and forms from me, but the loan is in my wife's name only... again, as they state, because I am a foreigner.  The bank simply didn't know how to deal with it as I was the first foreigner in this town to apply for a home loan.

In September, I submitted my application for Permanent Resident... what a task.  Handan Public Security told us they had only processed 1 application before and that was 4 years ago... they admitted that they didn't know how to process the application and documentation.  Three months have passed and the local Public Security Bureau is still sitting on the application... it hasn't been forwarded to the Provincial level yet, let alone to Beijing.
You don't need a weatherman to know which way the wind blows. — Bob Dylan

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Post time 2015-12-29 14:11:58 |Display all floors
that's not real exactly .. you pay a large sum of money and in the end you are just leasing .
that's ridiculous then how can they ask for you to pay so much money in a short time?

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