Public Grant of Land Use Rights and Mortgage Lending Risks

October 02, 2007 | BY

clpstaff &clp articles

By Ruoying [email protected] Rules on the Grant of State Owned Land Use Rights Through Bidding, Auction and Public Offer, promulgated…

By Ruoying Chen

[email protected]

The Rules on the Grant of State Owned Land Use Rights Through Bidding, Auction and Public Offer, promulgated on  July 1 2002, require that all grants of land use rights for commercial purposes be conducted through one of three types of public grant: tender offer (招标), auction (拍卖) or public offer (挂牌) (collectively, Public Grants). The scope of mandatory Public Grants also covers land use rights for the purposes of business, tourism, entertainment and residential apartments and other circumstances. This bulletin considers some of the issues and legal risks inherent in the Public Grant process.

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