Decision to dispel concerns about 70-year land warrants
China's decision to study land use renewal after the current 70-year land warrants expire will help clear up public concerns and reduce disputes over demolitions, experts said.
According to a guideline released Sunday by the Central Committee of the Communist Party of China (CPC) and the State Council, China will study the legal arrangements for current 70-year land warrants, improvements to expropriation regulations and relations between owners and managers of State-owned property.
"This is the first time for China to issue a guideline on the State level on the protection of property rights. It reassures the public as many are concerned that their property would be seized by the government after their use rights expire," Fu Weigang, a research fellow at the Shanghai Institute of Finance and Law, told the Global Times.
In China, homebuyers can prove ownership of an apartment, but not the land. A land warrant for residential development runs for a maximum of 70 years, those used for industrial or cultural purposes for 50 years, while those for business or commercial-use for 40 years. Some local governments have also issued land warrants for shorter periods of time.
The guideline provides a direction for the future revision of the Property Law, Fu said, adding that the law states that "the term of the right to use land for the construction of houses shall be automatically renewed upon expiration," but gives no specific criteria, said Fu.
Fu cited the expiry of 20-year residential land use rights in Wenzhou, Zhejiang Province, saying that it would affect social stability when similar incidents are handled improperly.
The Wenzhou government has asked homeowners to pay up to a third of their homes' value to renew their rights to apartments they bought 20 years ago, triggering public concern across China on how to renew their use rights in April, the Xinhua News Agency reported.
"Property rights are an individual's most important and valuable civil rights ... Discussing regulations after use rights expire is an effort to make homes the permanent property of their holders and helps boost society's respect for people's property rights," said Renmin University of China law professor Yang Lixin.
Yang suggested that local governments which issued land warrants shorter than 70 years should extend the period to 70 years. And the government could charge a small fee for renewing the term to be regulated by the legislative body.
The guideline also states that although China is moving to protect property rights, many problems remain, including the infringement on private property by government authorities and weak intellectual property rights protection.
Secure property rights "raise people's sense of wealth security, boost social confidence, foster positive expectations and encourage entrepreneurship and innovation," said the guideline.
Leveling playing field
The guideline also says law enforcement officers should be prudent in applying judicial policies to property rights and economic disputes. The presumption of guilt principle should be banned.
"Regulations on expropriation should be improved and the scope of public interests should not be broadened. Compensation should be fair," read the guideline.
Chen Fengshan, the founder and head of the "homeowners committee" of his Beijing residential community, told the Global Times that defining "public interest" remains a problem.
Chen has been battling with the property management company over the ownership of the community's public facilities since 2009, and claims he has studied regulations on property right ever since.
Some local governments may profit from expropriating land at a low price and selling it to real estate developers at a high price under the guise of "public interest," which lead to cases of forced demolition and relocations, said Chen.
Data from the People's Procuratorate in Sichuan Province shows that 108 people were punished in the first half of the year for their involvement in rural land development. Jia Jinglong, a villager from Hebei Province, was executed for murdering a local official out of revenge after his home was demolished.
Chen added that encouraging greater public involvement would help prevent clashes, such as public hearings and compensation standards.
