China’s property law: impact on the real estate sector

China’s property law: impact on the real estate sector

Article Type: Law Briefing From: Journal of Property Investment & Finance, Volume 27, Issue 2

China’s Law on Rights in Rem (, the “Property Law”), which took effect on October 1, 2007, contains many important legislative innovations and sets forth a number of ground-breaking rules that have had a profound impact on China’s economy, particularly in the real estate sector. Since the issuance of the Property Law, China’s central government agencies have issued a series of regulations to implement the Property Law in 2007 and 2008.

Of the existing implementation rules, the most important are the Land Registration Measures (, effective February 1, 2008)[1] and the House Registration Measures (, effective July 2008)[2]. In addition, various central government agencies have issued administrative measures that affect players in the real estate sector. These include the Measures for the Registration of Accounts Receivable Pledges (, effective October 1, 2007)[3], the Measures for the Registration of Movables Mortgages (, effective October 17, 2007)[4], and the Measures for Equity Pledges Registration(, effective October 1, 2008)[5]. According to these Measures, uniform registration systems (URSs) for land, houses, accounts receivable pledges, mortgages on movables, and equity pledges will be established throughout the nation.

For the first time in China’s legislative history, the Property Law affords equivalent legal protection to public property rights and private property rights[6]. In doing so, it strikes a delicate balance between safeguarding the socialist economic system and promoting private property[7]. While maintaining the primacy of China’s socialist market economic system, the Property Law provides real property owners a certain level of comfort by delineating their rights. For instance, the Property Law dedicates a chapter to construction land use rights and lays out specific rules that are critically important to real estate developers. It also eases real property owners’ concerns by specifically providing that the term of residential construction land use rights will automatically renew after the initial 70-year term expires.

1. Construction land use rights

According to the Chinese Constitution, the State owns all land, except in rural areas and suburbs, where some may be collectively owned by a community[8]. Only land use rights, not the land itself, may be transferred in accordance with relevant laws and regulations[9]. Real estate owners own their share of the land use rights attached to their real property, and real estate developers must obtain construction land use rights in order to build on the land. Since the construction land use rights are only valid for a certain fixed period of time, real estate owners and developers face significant uncertainties. The Property Law sets forth a new rule on residential construction land use rights to address these uncertainties.

i) Automatic renewal of residential construction land use rights

The Property Law states that on the expiration of residential construction land use rights, such land use rights will be automatically renewed[10]. Construction land use rights constitute part of ownership rights. For example, the title to a condo consists of two kinds of rights, one is the right to the structure of the condo, and the other is the right to use the land on which the condo is built for construction purposes. Without the latter right, the title is not complete. In China, no one but the State (or in the rural areas and suburbs, a collective community) may own the land itself, so a residential property owner may only own the construction land use right. According to laws and regulations prior to the Property Law, the term of such residential construction land use rights was 70 years. With the development of China’s real estate industry, many real estate owners were concerned that the State would revoke their construction land use rights after 70 years. The “automatic renewal” provision in the Property Law helps alleviate these concerns and reinforce the State’s promise that it will protect the legitimate private property of its citizens.

Nonetheless, it remains unclear how the Property Law will affect the renewal of non-residential construction land use rights. The Property Law merely states that the renewal of non-residential construction land use rights must be handled in accordance with relevant laws[10]. Due to the lack of specific provisions under current laws and regulations, real estate developers who focus on non-residential construction or owners of non-residential properties have reason to be concerned. To reassure these developers and owners, the Chinese government needs to issue detailed implementation rules regarding the renewal of non-residential construction land use rights. The Property Law’s inclusion of the “automatic renewal” provision for residential construction land use rights suggests that the same or similar provisions for non-residential land use rights will be adopted.

ii) Establishment and use of construction land use rights

The Property Law emphasizes and clarifies several issues concerning construction land use rights, including:

• •

  A construction land use right may be established above, on the surface of, or underneath the land. A newly established construction land use right does not impinge on the established right of usufruct, i.e., the right to use and derive profit or benefit from property owned by another person[11].

• •

  Land for industry, commerce, operation, tourism, entertainment and residence purposes, as well as land in which two or more parties are interested, must be granted through tendering, auction or other methods of public bidding. The establishment of a construction land use right by way of government allocation should be extremely rare[12].

• •

  The holder of construction land use rights is entitled to transfer, exchange, make capital contribution with, gift or mortgage such rights, unless otherwise prescribed by law[13]. Where a construction land use right is transferred, exchanged, used to make capital contribution, given away as a gift, or mortgaged, the parties involved must enter into a written contract. The parties may agree on the term of use, as long as the term is within the remaining term of the land use right[14].

• •

  When the holder of a construction land use right constructs buildings, structures or ancillary facilities, the holder has ownership rights to these constructions, unless contrary evidence proves otherwise[15]. Where the construction land use right is transferred, exchanged, contributed as capital, or given away as a gift, the buildings, structures and ancillary facilities attached to such land will be disposed of together with the construction land use right[16].

2. Rights of real estate owners

Various clauses in the Property Law strengthen the protection of the rights of real estate owners. In particular, for the first time in China, the Property Law addresses real estate owners’ differentiated ownership of a building when they both exclusively own some space in the building and co-own common areas of the building.

i) Equal protection of the legal property of private individuals

The Property Law establishes the principle that the rights of the State, private enterprises, social organizations, individuals and any other right holders in rem receive equal protection under the law. In particular, the Property Law emphasizes that the legal properties of private individuals are protected by law and must not be invaded, looted or damaged by any entity or individual[17]. These points reflect the 2004 Amendments to the Constitution of the PRC, which expound the principle that a citizen’s legal private property must be free from infringement[18].

ii) Real estate owner’s differentiated ownership of building areas

According to the Property Law, a real estate owner has an ownership right to any portion of a building, whether residential or commercial, that the owner exclusively owns, and has co-ownership and joint management rights over the common areas of the building[19]. The Property Law terms this concept “differentiated ownership of building areas.” Based on this concept, the Property Law introduces many new rules that impact not only real estate owners, but also real estate developers and brokers:

• •

  Public premises, public utilities and property service premises. The Property Law states that roads within a construction zoning area, excluding public roads in a municipality or township, are jointly owned by the owners. In addition, green spaces within the construction zoning area, excluding public greenery land in municipalities and greenery land expressly indicated as privately owned, are jointly owned by the owners. Other public premises, public utilities and property service premises in the construction zoning area are also jointly owned by the owners[20]. In order to promote the sale of real properties, real estate developers often promise gardens or greenery land to ground-floor purchasers and terraces to top-floor purchasers. However, since the gardens, greenery land and terraces are subject to joint ownership under the Property Law, real estate developers do not have the right to grant them to certain purchasers. Consistent with the Property Law, the House Registration Measures further provide that when a real estate development enterprise (“REDE”) applies for the primary registration of a house title, it must also apply for the registration of the building areas (such as the public premises, public utilities and property service premises mentioned above) legally co-owned by all the owners within the house’s zoning area. The house registration authority will then record the co-owner’s title to the co-owned building areas in the house register book without issuing any title certificate[21]. These measures provide clear guidance to REDEs on how to deal with the registration of premises for public use.

• •

  Parking spaces and garages planned for parking vehicles. According to the Property Law, parking and garage spaces within a construction zoning area must first be used to satisfy the needs of property owners. However, parties may contract on the allocation of parking and garage spaces through selling, gifting, leasing or other means. Off-road parking spaces and parking spaces in other jointly-owned areas are subject to joint ownership[22]. As the price of real property in China has skyrocketed in recent years, the price of parking and garage spaces has also increased significantly. The “priority status” enjoyed by real estate owners under the Property Law will prevent real estate developers from selling parking and garage spaces to parties other than the property owners for profit at the expense of the property owners.

iii) Neighboring relationships

The Property Law sets forth certain rules on neighboring relationships to prevent certain illegal activities by real estate developers and real estate right holders. For example, the Property Law dictates that the construction of a building may not violate relevant State regulations regarding construction projects and may not infringe on the ventilation, daylight, or sunshine rights of any neighboring building[23]. This clause protects the right of homeowners to enjoy natural light and prevents housing developers from engaging in illegal construction activities.

The Property Law also stipulates that the rightful occupant of a piece of real estate may not illegally discharge or release solid waste, air pollutants, water pollutants, noise, light, magnetic radiation or other harmful substances[24]. In addition, the rightful occupant may not endanger or damage any neighboring real estate when excavating the land, constructing buildings, laying ducts or pipes, or installing equipment[25]. Where the right holder of a piece of real estate has to use neighboring real estate to gain access to a water supply, discharge water, or lay down passages, ducts or pipes, such right holder must use his or her best efforts to avoid causing any harm to the right holders of the neighboring real estate. If any harm results, compensation must be made[26].

3. Registration of real estate

According to the Property Law, the establishment, modification, transfer or extinction of a right in rem pertaining to immovable property only becomes effective on registration in accordance with the law, and an unregistered right has no effect unless otherwise prescribed by law[27]. Since real estate is regarded as the most important kind of immovable property, the registration system for immovable property plays a vital role in the real estate sector. As part of the new Property Law, many changes have been and will continue to be made to the registration system of immovable properties.

i) Uniform registration system

Prior to the Property Law, many administrative authorities, including land, real estate, industry and commerce authorities, acted as registration authorities for the establishment, transfer and guarantee of a right in rem regarding immovable properties[28]. The handling of registration by various administrative authorities caused overlaps in registration, imposed burdens on rightful owners, and wasted resources.

However, according to the Property Law, the State will implement a uniform registration system (“URS”) for immovable properties at the local level. Specifically, the registration of immovable property will be handled by the local registration authority where such immovable property is located. The Property Law does not prescribe the scope of the uniform registration system, the role of the registration authorities or the specific registration procedures, but rather leaves these details to other laws and administrative regulations[29]. Accordingly, the Land Registration Measures and the House Registration Measures are intended to establish URSs for land registrations and house registrations, respectively.

In addition, the Measures for the Registration of Accounts Receivable Pledges establish a URS controlled by the PBC Credit Information Center for permissible pledges of accounts receivable[30] to provide pledgees with additional security. REDEs will benefit from such URS when they pledge their accounts receivable (such as those generated from the pre-sale of apartments and various leases) to improve their cash flow.

The Measures for the Registration of Movables Mortgages also establish a URS for movables mortgages[31]. Though movables mortgages are not commonly seen in China’s real estate sector, the fact that the mortgage of certain movables not currently owned but to be owned by a mortgagor in the future may be legally registered provides REDEs with more financial flexibility.

The Measures for Equity Pledges Registration, which apply to the equity interest of limited liability companies and companies limited by shares, except equities that have been registered with a securities clearing house, also contain a URS provision. Essentially, if holders of equity interest in non-publicly traded companies pledge their equity interest, this pledge must be registered with the administration for industry and commerce (AIC) in accordance with the URS. This will have a far-reaching and positive impact on REDEs, as well as other enterprises. In the past, there was no mandatory URS for equity pledges. Creditors were often unwilling to accept equity pledges as collateral due to their inability to verify such pledges. In practice, REDEs had to mortgage their land use rights, construction projects in progress or unsold completed buildings to their creditors in order to get loans. Without the ability to pledge their equities, REDEs often ran out of things to mortgage and found themselves with serious cash flow problems. Now, however, the URS makes equity pledges a more secure financial product, which in turn makes potential creditors more willing to grant loans. Investors will gain increased flexibility in financing their enterprises through pledging their equities, which potential creditors may value highly.

ii) Advance notice registration

With the rapid development of the real estate industry in China, pre-sale has become an increasingly important type of real estate transaction. However, because of the constantly rising price of real properties, some REDEs would sell a single set of real property to several different purchasers in order to maximize their profit, harming the rights and interests of individual purchasers, as well as the real estate market, in the process. Since 2006, the central government has taken steps to strengthen the management of pre-sale licenses and monitor the practice of real estate pre-selling[32]. However, these steps have failed to solve the problem.

The Property Law introduces a new phase of regulations on pre-sale activities. According to the Property Law, where parties have entered into an agreement regarding the sale and purchase of real estate, they may apply for advance notice registration (“ANR”) from the registration authority in order to protect the future realization of an in rem right. After such ANR, any disposal of the real estate without the consent of the right holder in the ANR has no effect[33]. Therefore, ANR by a purchaser may effectively prevent REDEs from selling the same set of real property to several different parties[33]. Consistent with this point of the Property Law, both the Land Registration Measures and the House Registration Measures have provided detailed rules on the handling of ANR.

The ANR mechanism under the Land Registration Measures allows the parties to a land transfer agreement to register their land rights under the agreement before the formalities of the transfer are completed. Throughout the duration of the ANR, the land registration authority will not register any change in land rights or any mortgage rights or servitude on the land. The ANR will expire if the relevant creditor’s rights end or if the application for the registration of the property is not filed within three months of the date it may first be registered[34].

Under the House Registration Measures, parties may apply for ANR when any of the following occurs:

• •

  the pre-purchase of a house;

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  the mortgage of a pre-purchased house;

• •

  the title transfer or mortgage of a house; and

• •

  any other situation as provided by laws or regulations.

Once it grants ANR for a house, the house registration authority will not register the disposal of the house unless the right holder of the ANR consents in writing[35]. However, if the applicants apply for house registration when the relevant creditor’s rights end or within three months of the date or that such registration was first allowed, the house registration authority will handle such application based on the items recorded in the ANR[35].

iii) “Objection” registration

The Property Law answers the question of what document constitutes proof of an ownership right to a real property. The record in a real estate register managed by the registration authority is the basis for property attribution and the substance of a right in rem[36]. The details recorded in the real estate register are supposed to be consistent with those on the Real Estate Ownership Certificate, but if discrepancies arise, the register prevails, unless there is convincing evidence that the register is mistaken[37].

The Property Law sets forth a registration system for objections. Where a right holder or interested party believes that the details recorded in the real estate register are incorrect, it may apply for a correction. If an interested party claims there is a mistake in the real estate register and the right holder of record agrees in writing to correct the mistake, then the registration authority must do so. Alternatively, if the interested party produces evidence to substantiate its claim that the real estate register is erroneous, then the right holder of record does not have to submit a letter for the registration authority to correct the error. However, where the right holder of record disagrees with the interested party, the interested party may lodge an objection with the registration authority. However, if the objecting party fails to file a lawsuit within 15 days from the date it lodges the objection, the objection becomes void. Where the objection registration is unjustifiable and causes harm to the right holder of record, the right holder may claim damages against the applicant for its objection[38].

Both the Land Registration Measures and the House Registration Measures implement the objection registration mechanism set forth by the Property Law. The objection registration rules under both measures are very similar.

Under the Land Registration Measures, if an interested party objects to another party’s claim to certain rights over a piece of land, the land registration authority may record the objection to provide the potential rightful owner with temporary protection. Throughout the duration of the objection registration, the land registration authority will not register any mortgage rights or any change in land rights. In addition, third parties will be notified of the objection registration so they can avoid suffering losses due to a defect in the land title. The objecting party must file a complaint regarding the disputed land right with a court within 15 days of the objection registration. If the court decides to hear the case, the objection registration will remain valid until the court delivers its final judgment. Once the objection registration expires, the parties may not petition for another objection registration on the same subject matter.

As the key implementation rules for the Property Law, the Land Registration Measures and the House Registration Measures outline several other mechanisms based on the principles of the Property Law.

In contrast to the Old Land Registration Rules, the Land Registration Measures emphasize the protection of multiple parties’ land rights, and make it clear that land registrations will only provide right holders with administrative verification rather than government approval. In addition, a fundamental function of land registration is to notify parties of the rights over or encumbrances on a certain piece of land. Unlike the oversimplified categorization of land registrations in the past, the Land Registration Measures group land registrations into comprehensive registration, primary registration, change registration, deregistration and “other registrations,” which is consistent with the Property Law.

In addition to the ANRs and objection registrations mentioned above, seizure registrations are also included as a subset of the “other registrations” group. In the past, when a court seized a piece of land to enforce a judgment, it would seal off the land and post announcements of the seizure. However, since the legal transfer of a piece of land only required a simple change in the registration of the land rights, these measures did not adequately protect bona fide third parties or prevent illegal transfers of seized land. Now, the Land Registration Measures require that the registration authority record any court seizure or pre-seizure of the land on the land register. After the land register shows such information, any action that affects the interests in the land will be invalidated.

The House Registration Measures have also adopted several important implementation rules. For instance, co-owners of a house may now jointly apply for the registration of their house[39]. In the past, only one person’s name could be recorded on the title certificate as the owner of the house, even if the house was co-owned by two or more people. This proved problematic, because the owner recorded on the house title could try to sell the house without the consent of his or her co-owners. For this reason, purchasers needed to take caution to ascertain whether houses were co-owned by other people. Now, however, the co-owners (including spouses) of a house may jointly apply for title registration and the title certificate may list all co-owners’ names.

The guardian of a minor may apply for registrations regarding the minor’s house. When a guardian applies on behalf of a minor, the guardian must submit sufficient materials to prove his or her identity as the guardian. Where such registration is for the disposal of the minor’s house, the guardian must also submit a written guaranty that the disposal is for the minor’s benefit[40].

The house registration authority will conduct an on-site inspection in the process of handling certain registrations, such as:

• •

  the primary registration of a house title;

• •

  the registration of a mortgage right in a construction project in progress;

• •

  the deregistration of a house title due to house destruction; and

• •

  other house title registrations for which laws or regulations require on-site inspection[41].

The house registration authority will not grant any registration for a house if:

• •

  the planning permit or construction permit was not legally obtained, or the house was not constructed as planned;

• •

  the applicant is unable to provide legal and valid documents to prove his or her source of rights, or the claimed rights are inconsistent with such certificates;

• •

  the application contradicts the record in the house register book;

• •

  the house is not specific or does not have the value of independent use;

• •

  the original rights holder applies for the registration of a house that has been legally expropriated or confiscated;

• •

  the rights holder applies for the registration of a house that has been legally seized; or

• •

  any other circumstance as provided by laws or regulations[42].

When a transferee of a rural residential house is not a member of the rural collective economic organization where the house is located, the house registration authority will not register the house, unless otherwise prescribed by laws or regulations[43].

4. Mortgages

A security right is the right of priority pertaining to some secured property that must be repaid when a debtor fails to pay an outstanding debt or meet other obligations agreed to by the parties. The most important security right in the real estate industry is a mortgage. Compared to previous regulations embodied in the Security Law of China and Judicial Interpretations of the Supreme Court on Some Issues Concerning the Application of Security Law, the Property Law has made substantial changes to the laws governing mortgages. According to the Property Law, when conflicts between the Security Law and the Property Law arise, the latter prevails[44].

i) Scope of permissible mortgaged properties

The Property Law enlarges the scope of permissible mortgaged properties. According to the Property Law, any property may be mortgaged unless prohibited by laws or administrative regulations. By way of example, the Property Law enumerates the following properties that may be mortgaged:

• •

  any building and other land appurtenances;

• •

  any construction land use right;

• •

  the right to contract management of barren land and other lands as obtained by means of tendering, auction, public consultation, etc.;

• •

  any manufacturing equipment, raw materials and semi-finished products;

• •

  any building, vessel or aircraft under construction; and

• •

  any transportation tools[45].

Thus, any building under construction, together with any construction land use right, can be mortgaged under the Property Law.

ii) The relationship between buildings and construction land use rights

The Property Law states that the mortgage of a building and the mortgage of the construction land use right associated with the building go hand in hand. In other words, where a building is mortgaged, the construction land use rights on the area occupied by the building are also mortgaged, and vice versa. If the mortgagor fails to mortgage the building and land use rights concurrently, any property not mortgaged will be deemed to have been mortgaged together under the law[46]. Previously, however, since many buildings in China were constructed on leased land use rights, it was difficult for building owners to separate the building property from the land use rights. Therefore, this provision will have a very significant impact on mortgage practice.

As for newly constructed buildings, the Property Law states that after the construction land use rights have been mortgaged, any newly constructed buildings on such land will not be treated as part of the collateral. Where the mortgagee exercises its rights against the mortgaged construction land use rights, any newly constructed buildings on such land must be disposed of together with the land use rights, but the mortgagee has no priority to claim repayment from the proceeds of the disposal of the newly constructed buildings[47]. According to the Security Law, where a creditor exercises such rights against the mortgaged construction land use rights, any newly constructed buildings on the land “may,” rather than “must,” be disposed of together with its construction land use rights[48]. The Property Law supersedes the Security Law in this regard to provide a clearer rule.

The Property Law further states that the construction land use rights of any township or village enterprise may not be mortgaged separately. Where the buildings, such as plants of a township or village enterprise, are mortgaged, the land use rights of the land occupied by the buildings are also mortgaged[49].

iii) Elimination of the prohibition against “excessive mortgages”

According to the Security Law, the debt secured by a mortgage may not exceed the value of the collateral. After being mortgaged, the balance of the property value in excess of the secured debt may be mortgaged again, but the subsequent mortgage may not exceed the value of the balance[50]. This prohibition against “excessive mortgages” diminishes the effectiveness of the mortgage mechanism by increasing transaction costs and restricting debtor finances. The Property Law allows repeated mortgages on one piece of property and does not set a cap on successive mortgages[51]. This represents significant progress for the security rights system.

iv) Realization of mortgages

According to the Security Law, only when a debtor defaults on a debt may a creditor exercise its rights against the collateral[52]. However, according to the Property Law, the creditor may also realize mortgages under other circumstances agreed to by the parties[53]. This expansion of creditor rights is a manifestation of the autonomy principle, and enhances the protection of creditor rights and interests. For example, a creditor may get the debtor to agree in a mortgage contract that the funds may only be used for specific purposes, otherwise the creditor may exercise its rights on the collateral.

The Property Law effectively decreases the cost of exercising rights on a mortgage. According to the Security Law, when a debtor fails to repay a debt in time, the creditor may seek to reach an agreement with the debtor to receive repayment by liquidating the collateral or converting it into cash through an auction or direct sale. If the debtor and creditor fail to reach an agreement, the creditor may file a suit in court[54]. However, considering attorney fees, court costs and application fees for the court’s compulsory enforcement, the cost of exercising a mortgagee’s rights through litigation is relatively high. Therefore, because they have to take into consideration mortgage realization costs, banks often undervalue the mortgaged property when offering loans to enterprises. Under the Property Law, however, when no agreement can be reached between the debtor and creditor regarding mortgage realizations, the creditor may request that the court auction or sell the mortgaged property. Requesting a liquidation of the mortgaged property is an inexpensive non-litigation procedure.

In short, since real estate development has been a pillar of China’s economic boom, and a growing number of people own real estate in China and consider it to be their most valuable investment, the rules on real property rights contained in the Property Law have drawn particular attention. The Property Law has laid a solid foundation for the protection of private property, including real property, in China, and the corresponding regulations that the government has subsequently issued demonstrate its dedication to fully implementing the Property Law. Many uncertainties still remain on how the Property Law will play out in practice, but the Property Law and its accompanying regulations present a good start to a regulatory system that offers more transparency and specific mechanisms for property owners to seek and receive protection of their property rights.

Promulgated by the Ministry of Land and Resources (MLR) to replace the outdated Land Registration Rules (issued in 1989 and revised in 1995, the “Old Land Registration Rules”).

Promulgated by the Ministry of Housing and Urban-Rural Development (MHURD (the former Ministry of Construction)) to supersede the Rules on the Administration of the Registration of Urban House Title (issued in 1997 and revised in 2001).

Published by the People’s Bank of China (PBC).

Promulgated by the State Administration for Industry and Commerce (SAIC) to supersede the Administrative Measures for the Registration of Enterprise Movables Mortgages (issued in 1995 and revised in 1998 and 2000).

Promulgated by the SAIC.

Article 3 of the Property Law provides, “The State adopts a socialist market economic system, and protects the equal legal status and the development rights of all market players.”

See Article 1 of the Property Law: “In order to maintain the basic economic system of the State, to safeguard the socialist market economic order, to specify the attribution of specific properties, to promote the utilities of properties and to protect the real rights of rights holders, this Law is made in accordance with the Constitution.”

Article 10 of the Constitution of the PRC (as amended in 2004).

Article 2 of the Property Law on Land Administration of the PRC (, as amended in 2004).

Article 149 of the Property Law.

Article 136 of the Property Law.

Article 137 of the Property Law.

Article 143 of the Property Law.

Article 144 of the Property Law.

Article 142 of the Property Law.

Article 146 of the Property Law.

Article 66 of the Property Law.

Article 13 of the Constitution of China (2004).

Article 70 of the Property Law.

Article 73 of the Property Law.

Article 31 of the House Registration Measures.

Article 74 of the Property Law.

Article 89 of the Property Law.

Article 90 of the Property Law.

Article 91 of the Property Law.

Article 92 of the Property Law.

Article 9 of the Property Law.

See Article 42 of the Security Law, for example.

Article 10 of the Property Law.

Such as those accounts receivable generated from: creditor’s rights from sale (including the sale of goods, the supply of water, power, gas and heat, and the licensed use of intellectual property); creditor’s rights from leases (including the leases of movables and immovables); creditor’s rights from rendering services; rights to charge fees for such immovables as highways, bridges, tunnels and ferries, etc.; and creditor’s rights from granting loans or other credits. See Article 4 of the Registration of the Pledge of Accounts Receivable.

The Measures for the Registration of Movables Mortgages broaden the scope of permissible movables mortgages by allowing enterprises, self-employed individuals/proprietors and agricultural producers/operators to mortgage movables currently owned or to be owned by the mortgagors, such as equipment, raw materials, semi-finished products and end products. See Article 2 of the Measures for the Registration of Movables Mortgages.

See Circular on Further Rectifying and Standardizing the Order of the Real Estate Business, jointly issued by the Ministry of Construction, the National Development and Reform Commission and the State Administration for Industry and Commerce on July 6, 2006.

Article 20 of the Property Law.

Article 62 of the Land Registration Measures.

Article 68 of the House Registration Measures.

Article 16 of the Property Law.

Article 17 of the Property Law.

Article 19 of the Property Law.

Article 13 of the House Registration Measures.

Article 14 of the House Registration Measures.

Article 19 of the House Registration Measures.

Article 22 of the House Registration Measures.

Article 87 of the House Registration Measures.

Article 178 of the Property Law.

Article 180 of the Property Law.

Article 182 of the Property Law.

Article 200 of the Property Law.

Article 55 of the Security Law.

Article 183 of the Property Law.

Article 35 of the Security Law.

Article 199 of the Property Law.

Article 33 and 53 of the Security Law.

Article 179 of the Property Law.

Article 53 of the Security Law.

Jun Wei, Steve Robinson, Michael ZouHogan & Hartson