Ministry of Land and Resources, Grant of State-owned Leaseholds by Invitation for Bids, Auction and Listing Provisions

Promulgated: May 9 2002
Effective: July 1 2002
Applicability: "Invitation for bids for grant of State-owned leaseholds" means the announcement of bid invitation to invite specified or unspecified citizens, legal persons and other organizations to take part in the submission of bids for State-owned leaseholds and the land user is determined according to the results therefrom; "auction for grant of State-owned leaseholds" means the announcement of the auction, the conduct of the auction at the specified time and in the specified place, and the determination of the land user according to the results of the auction bids; "listing for grant of State-owned leaseholds" means the announcement of the listing, the listing of the conditions for the granting of the land at the specified land exchange, the making of offers by competing buyers and the determination of the land user according to the results of offers at the close of the listing (Article 2).

Main contents: State-owned leaseholds for commercial, tourist, entertainment or commodity residential premises development purposes shall be granted by invitation for bids, auction or listing. Leaseholds for other purposes shall also be granted by such means if there are two or more competitors (Article 4). Plans for granting State-owned leaseholds by such means shall be prepared and, if approved, published and implemented by the administrative department in charge of land of the municipal or county people's government (the Granting Party) (Articles 5 and 6). Implementation of invitation for bids, auction or listing begins with the announcement thereof at least 20 days in advance (Article 8). Participants in bidding, auction or listing shall be subject to qualification screening by the Granting Party (Article 11). Procedures for invitation for bids, auction and listing are stipulated in the Provisions (Articles 13 to 19). The Granting Party and the winning party shall execute a confirmation upon the closing of the bidding, auction or listing and a definitive State-owned Leasehold Grant Contract on the date specified in the confirmation (Articles 20 and 21). Upon payment of the agreed grant fee, the lessee shall apply for land registration and the State-owned leasehold certificate accordingly (Article 23).
Related legislation: PRC, Administration of Urban Real Property Law, Jul 5 1994, CLP 1994 No.8 p23; PRC, Land Administration Law (Revised), Aug 29 1998, CLP 1998 No.9 p27 and PRC, Land Administration Law Implementing Regulations (Revised), Dec 27 1998, CLP 1999 No.1 p9