virginia real estate lawyer

virginia real estate lawyer
What the law says

In China, neither domestic nor foreign
Companies can own country win bets, but they own Land Use
Rights. There are two types of Land Use Rights - Allocation and
Granted. In comparison with Western common law concepts,
Allocating land use rights are in some ways similar
Rents, and land use rights are granted in some way
similar to the life Estates.

Allocating land use rights are generally provided by the
Government for an indefinite period (usually state
Companies) and can not be pledged, mortgaged, leased or
transferred by the user. Moreover, land can be allocated
Reclamation by the government at any time.

Land use rights are granted by the government in
Exchange for a fee grant and the rights to the promise
Mortgages, leases, and within the period of the grant.
Land is granted for a fixed term - usually 70 years for
Housing, 50 years for industrial use, and 40 years for
commercial and other use. The concept is in the theory of renewable
(even if no foreign investor in China is long enough to
Find out how this works in practice). Unlike the usual case in
Western nations land is granted for the specific
Purpose for which it was granted.

Allocating land use rights can be issued in the country
Use rights to the payment of a fee grant to the state.
Also Granted Land Use Rights are subject to the expropriation of
the government under unusual conditions (in exchange for
fair compensation as the outstanding achievement in the field of
USA). This state of things for work in the favor of the rule
foreign investor - land to foreign companies
Expropriation is rare, but agricultural land is often
expropriated to make room for foreign
Projects.

How the law applies to foreign companies

Most of the foreign joint ventures receive Land Use Rights
by the Chinese party. A common problem is that the Chinese
Party only allocate land use rights for the land they
used (the search for this, if the Chinese side is a
State-owned enterprises). In this case, the authority to transfer
the land use is located in the local land administration
Office, and the Chinese party is not entitled to
it to the joint venture.

However, if the joint venture may purchase long-term
Land use rights granted to the Land Administration Bureau
through a land grant contract, the joint venture will
can mortgage the land or transfer it to a third party.
Note however, that vacant land is developed with 25%
Granted land use rights can be acquired. Do not attempt
Granted land use rights to acquire, if you do not intend to
they develop within a short time, because even if the country
qualified than 25% developed, and thus eligible for a grant, it
can still be "free", and free surfaces can be
recovered if the development is not started within 2 years
Transfer.

A second option would be for an investor to receive
Granted land use rights and then lease the land on the Common
Venture. However, vacant land can not be leased to a third party
(such as a joint venture or other foreign companies)
by the grantee. It is also noteworthy that a lease must be
be registered in order to fight against the leased
potential competing claims.

Thirdly, if you are prepared for the Land Use Allocation
Rights, foreign companies can simply use the
Land allocated to him by the local land administration office.

In the case of a joint venture, a fourth option would be to
Chinese party, the allocation of its Land Use Rights
to the joint venture as part of their capital contribution in
this case, the Chinese party shall be liable for the annual Country
Usage fees.

Another frequent problem is that the land and building (s) on
they are owned by different parties, the creation of a potentially messy
legal situation where all parties are not willing to cooperate.

Most importantly, it would be a good idea, the
Chinese party to prove the status of his land use rights with
Evidence for the application before approval of the project.
Further, pre-due diligence should include a thorough transfer
Impact on the environment, self-assessment (see Glossary for
Details). Finally, remember that the payment and transfer of
'title' by public registration with the Land
Administrative Bureau can not take place simultaneously --
Registration of land transfers are not permitted unless a
Receipt of payment with the registration transfer
Application.

David Carnes is licensed to practice law in California. He reads and speaks Mandarin Chinese and has several years experience working with Chinese law firms and Sino-American joint ventures. Read his website, imported from China.