In accordance with the provisions of such laws as the General Principles of Civil Law of PRC, the Contract Law of PRC, the
Land Administration Law of PRC and the Administrative Law of the Urban Real Estate of PRC and in combination with practices
in civil trials, with respect to the matters concerning the law application in the trial of the disputes arising from
contract for right to use the state-owned land, this Interpretation is thus promulgated.

1. The disputes arising form the contract for consignment of land-use right

Article 1 The contract for consignment of land-use right referred to in this Interpretation is the agreement in which
the municipal people's government or the people's government of a county, as the assignor, assigns the right to use the
state-owned land to the assignee for a certain term while the assignee pays the fees for assignment.

Article 2 The contract for assignment of land-use right concluded by the administrative committee of development zone
as a assignor and the assignee shall be determined to be invalid.
Where the contract for assignment of land-use right concluded by the administrative committee of development zone as a
assignor and the assignee prior to the implementation of the this Interpretation is recognized retroactively by the land
administration authorities of municipal people's government or the people's government of the county shall be determined to
be valid.

Article 3 Where the land-use right is assigned by way of agreement as approved by the municipal people's government or
the people's government of a county and the fees for assignment is lower than the lowest price prescribed by the
state at the time of the conclusion of the contract, the price clauses as agreed in the contract for assignment of land-use
right shall be determined to be invalid.
Where the party concerned requires paying the fees for assignment of the right to use land in accordance with the
market evaluation price at the time of the conclusion of the contract, the party shall be supported. Where the assignee
disagrees to compensate in accordance with the market evaluation price and requires rescinding the contract, the
assignee shall be supported. The losses thus caused shall be born by each party in accordance with respective fault.

Article 4 Where the assignor in the contract for assignment of land-use right fails to deliver the land because the
approval procedures of assignment of right to use land has not been gone through and the assignee requires rescinding the
contract, the assignee shall be supported.

Article 5 Where the assignee, after the approval of the city layout authorities in municipal people's government or the
people's government of a county, changes the purpose of the land as agreed in the contract for assignment of land-use
right, the party concerned requiring adjustment of the fees for the assignment of land-use right in accordance with the
fees for the assignment of right to use the land of same purpose at the time when the litigation is instituted shall be
supported.

Article 6 Where the assignee changes without authority the purpose of the land as agreed in the contract for assignment of land-use right, the assignor requiring rescinding the contract shall be supported.

2. The disputes arising from the contract for the transfer of land-use right

Article 7 The contract for transfer of land-use right as referred to in this Interpretation is the agreement in which
the owner of the land-use right, as the transferor, transfers
the land-use right to the transferee while the transferee pays
the fees thereof.
Article 8 After the owner of the land-use right concludes the
contract for transfer of land-use right with the transferee,
either party requiring for the determination of the invalidity
of the contract because that the parties have not conducted
registration procedures of the change of the land-use right
shall not be supported.
Article 9 Where the transferor who doesn't obtain the
certificate of land-use right concludes contract with the
transferee and obtains the certificate of land-use right or
the people's government that has the approval authority agrees
to the transference before the litigation is instituted, the
contract shall be determined to be valid.
Article 10 Where the owner of land-use right, as the
transferor, concludes more than one transfer contracts for one
land-use right, and the transfer contracts are valid and all
transferee requires the performance of the contract, it shall
be dealt with in accordance with the following circumstances:
(1) The transferee that has gone through the registration
procedures for the change of land-use right and requires the
transferor to perform such contractual liabilities as delivery
of land shall be supported.
(2) Where non has gone through the registration procedures
for the change of land-use right and the transferee that has
already legally occupied and invested for development of the
land requires the transferor to perform such contractual
liabilities as the registration for the change of land-use
right shall be supported.
(3) Where non has gone through the registration procedures
for the change of land-use right and legally occupied and
invested for development of the land, the transferee that has
already paid the land transfer fees and requires the
transferor to perform such contractual liabilities such as
delivery of land and registration for the change of land-use
right shall be supported.
(4) Where all contracts are not performed and the transferee
in the contract that is established at the earliest time
requires the performance of the contract, the transferee shall
be supported.
Where the transferee that has not obtained the land-use right
requires rescinding contract and damages, it shall be dealt
with in accordance with relevant provisions of the Contract
Law of PRC.
Article 11 Where the owner of land-use right failing to be
approved by the people's government that has the approval
authority concludes contract with the transferee to transfer
the allotted land-use right, the contract shall be determined
to be invalid. Where before the litigation is instituted the
people's government that has the approval authority approves
the transfer of land-use right, the contract shall be
determined to be valid.
Article 12 Where the owner of land-use right concludes
contract with the transferee to transfer the allotted land-use
right and before the litigation the people's government that
has the approval authority approves the transfer thereof and
the transferee conducts the land-use right transfer
formalities, the contract between the owner of the land-use
right and the transferee may be treated as the contract with
compensation nature.
Article 13 Where the owner of the land-use right concludes
contract with the transferee to transfer the allotted land-use
right and the people's government that has the approval
authority, before the litigation is instituted, decides not to
conduct the transfer formality of the land-use right but to
allot the land-use right directly to the transferee, the
contract between the owner of the land-use right and the
transferee may be treated as the contract with compensation
nature.
3. Disputes arising from the contract for cooperative
development of real estate
Article 14 The contract for cooperative development of real
estate as referred to in this Interpretation is the agreement
concluded between parties to provide the transference of
land-use right or fund as cooperative investment to develop
real estate, to share profits and take risks together.
Article 15 Where one party to the contract for cooperative
development of real estate has the qualification for real
estate development and operation, the contract shall be
determined to be valid.
Where all parties do not have the qualification for real
estate development and operation, the contract shall be
determined to be invalid. Where one party has obtained the
qualification for real estate development and operation or a
real estate development enterprise with qualification for real
estate development and operation is established by cooperation
before the litigation is instituted, the contract shall be
determined to be valid.
Article 16 Where the owner of land-use right concludes
contract with others to develop real estate together, with the
allotted land-use right as investment without the approval of
the government that has the approval authority, the contract
shall be determined to be invalid. Where the approval
procedure is gone through before the litigation is instituted,
the contract shall be determined to be valid.
Article 17 Where the investment amount exceeds what has been
agreed in the contract for cooperative development of real
estate, and parties concerned are not able to determine the
share rate of the extra amount by mutually consulting, the
share rate shall be determined based on the fault of the
parties. Where it is because of the reasons non-attributable
to the parties or the fault of the parties can't be
ascertained, the determination shall be made according to the
agreed investment rate. Where there is no agreed investment
rate, the determination shall be made according to the agreed
profit sharing rate.
Article 18 Where the actual construction acreage of the house
is less than that agreed in the contract for cooperative
development of real estate, and parties concerned are not able
to determine the allocation rate of the actual construction
acreage of the house by mutually consulting, the rate shall be
determined based on the fault of the parties. Where it is
because of the reasons non-attributable to the parties or the
fault of the parties can't be ascertained, the determination
shall be made according to the agreed profit sharing rate.
Article 19 Under the following circumstances, the request of
the parties to the contract for cooperative development of
real estate for the allocation of the proceeds of the real
estate project shall not be accepted and those that have been
accepted shall be rejected:
(1) The real estate construction project that needs approval
in accordance with law is not been approved by relevant
authority of the people's government that has the approval
authority;
(2) The real estate construction project does not obtain the
layout certificate for construction project;
(3) The layout of the construction project has been changed
without authority.
Losses caused because the parties conceal the fact that the
layout of the construction project has been changed shall be
born by the parties based on their fault.
Article 20 Where the actual construction acreage of the house
is more than the construction acreage in the layout and
parties concerned are not able to determine the share rate of
the extra amount of the house by mutually consulting, the
share rate shall be determined based on the agreed profit
sharing rate after the approval the people's government that
has the approval authority. Where parties concerned are not
able to determine the share rate of the extra amount of
investment by mutually consulting, the share rate shall be
determined based on the agreed investment rate, and where
there is no agreed investment rate, the determination shall be
made according to the agreed profit sharing rate.
Article 21 Where the house the development and construction
of which violate the layout is determined by the authority of
the people's government that has the approval authority to be
illegal construction and ordered to be removed and the parties
can't determine the bearing of losses by mutual consulting,
the bearing of the losses shall be determined based on the
fault of the parties. Where the fault of the parties can't be
ascertained, the determination shall be made according to the
agreed investment rate. Where there is no agreed investment
rate, the determination shall be made according to the agreed
profit sharing rate.
Article 22 Where the contract for cooperative development of
real estate stipulates that the determination of profit
sharing rate is to be made based on the investment amount and
the party does not pay full investment, the profit shall be
shared based on the actual investment.
Article 23 The parties to the contract for cooperative
development of real estate requiring for profit sharing with
the payment in advance sales of the house deducting the
investment shall not be supported.
Article 24 The contract for cooperative development of real
estate stipulating that the party providing land-use right
will not bear operation risk and only accept fixed proceeds
shall be determined to be contract for transfer of land-use
right.
Article 25 The contract for cooperative development of real
estate stipulating that the party providing fund will not bear
operation risk and only be distributed with fixed number of
houses shall be determined to be contract for sale of house.
Article 26 The contract for cooperative development of real
estate stipulating that the party providing fund will not bear
operation risk and only accept fixed money shall be determined
to be contract for sale of house.
Article 27 The contract for cooperative development of real
estate stipulating that the party providing fund will not bear
operation risk and only use the house by way of lease or
otherwise shall be determined to be contract for lease of
house.
4. Other Provisions
Article 28 This Interpretation shall be implemented as of
August 1, 2005; the first instance case thus accepted after
the implementation thereof applies this Interpretation.
Where the judicial interpretation promulgated by the Supreme
People's Court before this Interpretation is in conflict with
this Interpretation, the latter shall prevail.
　

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