Land lease renewals may cost money

April 16, 2009 | BY

clpstaff &clp articles

Draft land administration law introduces confusion

Draft amendments to the PRC Land Administration Law may give the government power to decide to charge for the renewal of a land lease every 70 years.

The draft, published in mid-March and now open for comment, has added 49 new regulations and started debate on the topic of renewal of leaseholds on premises.

Article 149 of the PRC Property Law states that leaseholds of construction land for residential premises shall be "renewed automatically". The new draft land administration law contains a rather more vague description to the effect that renewals must "comply with the country's relevant provisions".

Some have taken this as opening the door to charging fees for renewals of residential leaseholds.

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