Allocated land is generally only allocated to stateowned enterprises for industrial or public use, although it might be possible for land
to be allocated to private enterprises in some localities. Land may be allocated to FIEs for construction in certain sectors, principally for large infrastructure projects.
There are certain restrictions on the uses of allocated land. For example, a mortgage or disposal of the right to use of allocated land is subject to the approval by the land authorities. Allocated land use rights usually do not have a term limit.
Grant of Land Use Rights:
This involves obtaining a grant of land use rights from the State or a local land authority for a fixed term by entering into a land grant contract. Upon payment of a grant premium and completing the registration procedures, a real estate ownership certificate will be issued. The land user has to pay an annual land use charge. Granted land use rights may be mortgaged 92 and are transferable.
Purchase from Existing Land Users:
Granted land use rights can be purchased from existing holders of such rights. A contract for the assignment of land use rights has to be entered into to effect the assignment of rights and the transfer of land use rights registered with the local real estate registration authority. Conditions attaching to the original grant will be transferred to the assignee, except for the regulatory requirements and conditions for land investment and development set out in the original grant contract that must be complied with before the transfer.
Obtain from Rural Collectives:
Before 2019, collectively-owned land had first to be converted to state-owned land before an FIE could obtain the land use rights. However, this has been changed by the amendment of the Land Administration Law in 2019. Land use rights over the land owned by rural collectives can now be obtained without such conversion, subject to fulfillment of certain requirements, including having the transaction approved by more than two-thirds of the members in the villagers’ meeting of the relevant rural collective or more than two-thirds of the villager representatives.
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