Interpretation of the Civil Code Articles 348 and 351 .

Mondo Social Updated on 2024-01-30

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Article 348 [Contract for the Transfer of the Right to Use Construction Land] Where the right to use construction land is established through bidding, auction, agreement, etc., the parties shall conclude a contract for the transfer of the right to use construction land in writing.

The contract for the transfer of the right to use construction land generally includes the following clauses:

1) The name and domicile of the parties;

2) Land boundaries, area, etc.;

3) The space occupied by buildings, structures and their ancillary facilities;

4) Land use and planning conditions;

5) the term of the right to use construction land;

6) Fees such as transfer fees and payment methods;

7) Methods of Dispute Resolution.

Interpretation: If the right to use construction land is established through open bidding (bidding, auction and listing), the transferor and the transferee shall enter into a written contract. This type of land use contract generally includes: (1) the basic information of the transferor and the transferee. The transferor is the natural resources management department as we usually understand it, and the transferee is the owner of the right to use the construction land. (2) The land to be sold must be clear, where is it?How much is the area?Generally, you can see one or two from the boundary map of the parcel being transferred. (3) The use of land for construction, the main building and supporting facilities and other occupied space should be clear. (4) What kind of business is it to use this piece of land for development. Is it industrial land?Commercial land?Recreational land?Residential land?You can't make money in any format, and you can't invest in development to make money, and the use of land must be strictly supervised and approved. (5) All land use rights are granted for a period of time, and the term for residential land is 70 years;50 years of industrial land;50 years of land for science, education, culture and health;40 years for commercial, tourism and recreational land;50 years for composite or other land. (6) All land transfers must first pay money to prove credit, and it is generally required to pay in full within 60 days after the signing of the transfer contract, otherwise, the transferor has the right to terminate the contract. (7) If more than two parties are involved in the transaction, disputes and conflicts are unavoidable, so the ways and methods of resolving the disputed matters should also be listed in the contract. Is it a negotiation?Arbitration?Litigation?

Article 349 [Registration of the Right to Use Construction Land] Those who establish the right to use construction land shall apply to the registration authority for the registration of the right to use construction land. The right to use construction land shall be established at the time of registration. The registration authority shall issue a certificate of ownership to the holder of the right to use the construction land.

Interpretation: The right to use construction land should be registered, because only when it is registered, this right will take effect. Registration is a requirement for validity. This can be combined with the registration of immovable property. What are you doing on the land for construction?Build a house. The house must be registered, the land goes with the house, and the right to use this piece of land must of course be registered. After registration and confirmation of rights, the registration authority shall issue a small copy proving rights. Of course, it is necessary to distinguish between the requirements for the validity of a contract and the requirements for the effectiveness of a property right. The transfer contract only needs the signatures and seals of both parties to take effect, while the right to use construction land is a real right, and this kind of real estate right needs to be registered before it takes effect. If it is not registered, only the real right will not take effect, but it will not affect the validity of the contract, and the parties can still pursue the liability of the other party for breach of contract according to the effective contract.

Of course, this is the case of the sale. And what about allocations?As mentioned earlier, the allocation can be regarded as an administrative act, not a commercial transaction, and it is credit in itself, and it does not need to be bound by a contract, so the allocation does not need to sign a contract, and the "State-owned Land Allocation Decision" can be directly issued in line with the allocation to confirm the right. However, it is also immovable property that is transferred, and it is also subject to registration.

Article 350 [Land Use Control System] The holder of the right to use construction land shall make reasonable use of the land and shall not change the use of the land;If it is necessary to change the use of land, it shall be approved by the relevant administrative departments in accordance with law.

Interpretation: Since the transfer contract stipulates what the approved land is used for, it must be developed according to the purpose agreed in the contract, and you can't develop it as you want, otherwise the law will sanction it. The most serious thing is to take back the land without compensation. If you think that it is better and more beneficial for this land to be engaged in other business forms, you need to tell the land management department and the urban planning department about this design and idea, and if these departments agree to change the business format and change the use, you need to sign a new transfer contract, hand over the transfer fee, and go through the registration. Once all these steps have been completed, you can put your design and ideas into practice.

Article 351 [Obligation of the Holder of the Right to Use State-owned Construction Land to Pay the Transfer Fee and Other Expenses] The holder of the right to use construction land shall pay the transfer fee and other expenses in accordance with the provisions of the law and the contract.

Interpretation: As the author said earlier, the transfer fee is "money", a symbol of currency, and a symbol of credit. The transferee needs to use money to prove that it has the strength of development and construction, and will live up to the expectations of the people and the people. If the money is not paid or insufficient when the money should be paid according to the contract, then it proves that the transferee is a big fool and has no strength, and the transferor can terminate the contract and require the transferee to bear the liability for breach of contract.

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