| Real Right Law of the People's Republic of China
Adopted at the Fifth Session of the 10th National People's Congress on March 16, 2007 and shall go into effect as of October 1, 2007
Part I General Rules
Chapter I Basic Principles
Article 1 In accordance with the Constitution, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the res, bringing into play the utilities of the res and safeguarding the real right of the right holder.
Article 2 The civil relationships incurred from the attribution and utilization of the res shall be governed by the present Law.
The term "res" as mentioned in the present Law means realties and chattels. Where it is prescribed in any provision that certain right shall be taken as an object of real right, such provision shall be applicable.
The term "real right" as mentioned in the present Law means the exclusive right of direct control over a specific res enjoyed by the holder in accordance with law, including ownership, usufractuary right and real rights for security.
Article 3 In the primary phase of socialism, the state adheres to the basic economic system with the public ownership playing a dominant role and diverse forms of ownership developing side by side.
The public economy shall be consolidated and developed by the state, and the development of the nonpublic economy shall be encouraged, supported and guided.
The socialist market economy system shall be practiced by the state as well as the equal legal status and development rights of all market subjects shall be protected.
Article 4 The real right of the state, collective, individual or any other right holder shall be protected by law, and may not be damaged by any entity or individual.
Article 5 The varieties and contents of real rights shall be prescribed by law.
Article 6 The creation, alteration, alienation or termination of the real right of a realty shall be subject to registration in accordance with law. The creation or alienation of the real right of a chattel shall be delivered in accordance with law.
Article 7 One shall, when acquiring or exercising a real right, comply with the law, respect social morals and may not infringe upon the public interests or the lawful rights and interests of any other person.
Article 8 In case there exists any other special provision in respect of real right in any other law, such special provision shall prevail.
Chapter II Creation, Alteration, Alienation and Termination of Real Right
Section 1 Reality Registration
Article 9 Until it is registered in accordance with law, the creation, alteration, alienation or termination of the real right of a realty shall come into effect; unless it is otherwise prescribed by any law, it shall have no effect if it is not registered in accordance with law.
As regards the ownership of the natural resources owned by the state in accordance with law, the registration is not required.
Article 10 The registration of a realty shall be handled by the registration organ at the locality of the realty.
A uniform registration system over realties shall be practiced by the state. The scope, organ and measures of uniform registration shall be specified by the related laws and administrative regulations.
Article 11 In light of the different registration items, an applicant shall, when applying for the registration of a realty, provide the ownership certificate of the realty and such necessary materials as the location and area of the realty.
Article 12 A registration organ shall perform the duties as follows:
(1) To examine the ownership certificate and other necessary materials as provided by the applicant;
(2) To inquire the applicant about the registration items concerned;
(3) To register the related items in accordance with the facts and in a timely manner; and
(4) Other duties as provided for in any law or administrative regulation.
In case the related situation of the realty under application for registration needs further proving, the registration organ may request the applicant to provide supplementary materials and conduct on-the-spot inspection where necessary.
Article 13 No registration organ may commit any of the behaviors as follows:
(1) To ask for an evaluation of a realty;
(2) To repeatedly register in the name of annual inspection, etc. ; or
(3) Other behaviors conducted beyond its scope of registration duties.
Article 14 As regards the creation, alteration, alienation or termination of the real right of a realty, it shall go into effect since the date when it is recorded in the realty register in case the registration thereof is required by law.
Article 15 As regards a contract entered into by the related parties concerned on the creation, alteration, alienation or termination of the real right of a realty, it shall go into effect upon the conclusion of the contract, unless it is otherwise prescribed by any law or the contract; and the validity of the contract is not affected, whether the real right has been registered or not.
Article 16 The realty register shall be the basis for deciding the ownership and contents of a real right and shall be under the management of the registration organ.
Article 17 The realty ownership certificate shall be the evidence for the holder's ownership of a realty. The items recorded in the realty ownership certificate shall accord with those recorded in the realty register; unless it is proved that there is anything wrong in the realty register, the one recorded therein shall prevail in the case of any inconsistence.
Article 18 Any right holder or interested party may file an application for consulting or copying the registration materials, and the registration organ may not reject.
Article 19 In case any right holder or interested party holds that there is anything wrong in any item recorded in the realty register, it/he may apply for a correction of the registration. The registration organ shall revise the registration accordingly, in case the holder recorded in the realty register agrees to revise the registration in written form or there is evidence to prove that the registration is wrong.
The interested party may apply for dissidence registration, in case the holder recorded in the realty register does not agree to the alteration. Where the registration organ grants the dissidence registration but the applicant fails to lodge an action within 15 days as of the date of dissidence registration, the dissidence registration shall lose its effect. In case the dissidence registration is improper and bring into damages to the right holder, the holder may require the applicant to compensate for damages.
Article 20 In case the related parties entered into a purchase agreement on a premise or the real right of any other realty, they may apply for advance notice registration to the registration organ so as to ensure the realization of the real right in the future. Without the consent of the holder in the advance notice registration, any disposal of the realty, after the advance notice registration, may not produce effect of real right.
In case the obligee's right is terminated after the advance notice registration is made, or the application for the registration of the realty is not filed within three months as of the date when it can be registered, the advance notice registration shall lose its effect.
Article 21 In case any related party provides false materials for applying for registration and causes damages to any other person, it/he shall assume the liability for compensation.
In case any registration organ causes damages to any other person by virtue of any mistake in registration, it shall assume the liability for compensation. The registration organ may, after making the compensation, recover the amount from the person who causes the registration mistake.
Article 22 Realty registration fees shall be charged on each piece, and may not be charged on the basis of certain proportion of the size, volume or the realty's value. The concrete charging rates shall be formulated by the related departments in the State Council in collaboration with the competent pricing department.
Section 2 Chattel Delivery
Article 23 Unless it is otherwise prescribed by any law, the creation or alienation of the real right of a chattel shall come into effect upon delivery.
Article 24 The creation, alteration, alienation or termination of the real right of any vessel, aircraft or motor vehicle and so on may not challenge any bona fide third party if it is not registered.
Article 25 In case the right holder has legally possessed the chattel prior to the establishment or alienation of a chattel's real right, the real right shall come into effect upon the effectiveness of the legal act.
Article 26 In case a third party has legally possessed the chattel prior to the establishment or alienation of a chattel's real right, the person assuming the obligation of delivery may, instead of delivery, alien the right to request the third party to return the original object.
Article 27 In case both parties agree to let the alienator continuously possess the chattel when the real right of a chattel is alienated, the real right shall go into effect upon the effectiveness of the agreement.
Section 3 Other Rules
Article 28 In case the creation, alteration, alienation or termination of a real right is resulted from a legal document of the people's court or arbitration committee or a requisition decision of the people's government, etc., the real right shall come into effect upon the effectiveness of the legal document or the requisition decision of the people's government.
Article 29 In case a real right is acquired through inheritance or bequest, it shall go into effect as of the beginning time of the inheritance or bequest.
Article 30 In case a real right is created or terminated as a result of such factual behaviors as the legal construction or premise demolition, it shall come into effect upon the accomplishment of the factual behavior.
Article 31 As regards a real right of realty enjoyed according to the provisions of Articles 28 through 30 of the present Law, any disposal thereof may not produce effect of real right until it is registered as required by law.
Chapter III Protection of Real Right
Article 32 Where a real right is damaged, the right holder may settle the problem by means of conciliation, mediation, arbitration or litigation, etc.
Article 33 Where any dispute over the ownership or content of real right arises, the interested parties may require the confirmation of the right.
Article 34 Where a realty or chattel is under an unauthorized possession, the right holder may require the returning of the original object.
Article 35 In case a real right is under obstruction or may be obstructed, the right holder may require the removing of the impediment or the termination of the danger.
Article 36 In case a realty or chattel is damaged, the right holder may require the repairing, remaking, changing or the restoration of the original state.
Article 37 In case the infringement upon a real right causes losses to the right holder, the right holder may require the compensation for the losses or the assuming of any other civil liability.
Article 38 The ways for protecting real right as prescribed in the present Law may apply either independently or jointly in light of the specific situation of an injury of real right.
In addition to assuming civil liabilities, any entity or individual infringing upon a real right shall assume the administrative liabilities where it/he violates any provision on administrative regulation; in case any crime is established, it/he shall assume the criminal liabilities.
Part II Ownership
Chapter IV General Rules
Article 39 The owner of a realty or chattel is entitled to possess, utilize, seek profits from and dispose of the realty or chattel in accordance with law.
Article 40 The owner of a realty or chattel is entitled to establish a usufructuary right or real right for security over the realty or chattel. The holder of usufructuary right or the holder of real right for security may, when exercising the right, not injure the owner 's rights and interests.
Article 41 As regards a realty or chattel that is exclusively owned by the state as prescribed by law, its ownership may not be acquired by any entity or individual.
Article 42 In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, premises owned by entities and individuals or other realties according to the statutory power limit and procedures.
When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement subsidies, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security fees for the farmers with land requisitioned, guarantee their livelihood and protect their lawful rights and interests.
When requisitioning the premises owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties; when requisitioning the individuals' residential houses, it is required to guarantee the housing conditions of the owners of the requisitioned houses.
The compensation fees for requisition and other fees may not be embezzled, misappropriated, privately shared, detained or delayed in the payment by any entity or individual.
Article 43 Special protections are provided by the state for farm lands, the conversion of farm lands into construction lands is strictly restricted and the aggregate quantity of construction lands is under control. No one may requisition any land owned collectively with violation of the statutory power limit and procedures.
Article 44 For meeting urgent needs of dealing with emergent dangers or rescuing in disasters, it is allowed for one to use the realties or chattels owned by entities and individuals according to the statutory power limit and procedures. Such realties or chattels shall, after the emergent use, be returned to the owners. In case any realty or chattel owned by any entity or individual is used or damaged or lost after being used, corresponding compensation shall be made.
Chapter V State Ownership, Collective Ownership and Private Ownership
Article 45 As regards the properties that shall be owned by the state as provided for by law, they shall be in the ownership of the state, that is, owned by all the people.
The State Council shall exercise the ownership of state-owned properties on behalf of the state; in case there is any otherwise provision in any law, such provision shall prevail.
Article 46 Mineral deposits, waters and sea areas shall be in the ownership of the state.
Article 47 Urban lands shall be in the ownership of the state. As regards lands in the rural areas and suburban areas that shall be owned by the state as prescribed by law, they shall be in the ownership of the state.
Article 48 Such natural resources as forests, mountains, grasslands, waste lands and tidal flats shall be in the ownership of the state, except for those that shall be in the ownership of collective as provided for by law.
Article 49 As regards the wildlife resources that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.
Article 50 Radio frequency spectrum resources shall be in the ownership of the state.
Article 51 As regards the cultural relics that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.
Article 52 National defense assets shall be in the ownership of the state.
As regards such infrastructures as railways, highways, electric power facilities, telecommunication facilities, and petrol and gas pipelines that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.
Article 53 State organs have the power to possess, utilize and dispose of in accordance with the laws and the relevant provisions of the State Council any realty or chattel directly controlled by them.
Article 54 The public institutions held by the state have the power to possess, utilize, as well as, according to the laws and the relevant provisions of the State Council, seek profits from and dispose of any realty or chattel directly controlled by them.
Article 55 As regards the enterprises set up with the funds invested in by the state, the State Council and the local people's governments shall perform and enjoy the contributor's duties as well as rights and interests on behalf of the state in accordance with the relevant laws and administrative regulations.
Article 56 The state-owned properties shall be protected by law, and no entity or individual may encroach, plunder, privately distribute, hold back or damage them.
Article 57 The institutions and working personnel thereof in charge of performing the duties of managing and supervising state-owned assets shall, according to law, strengthen the management and supervision of state-owned assets so as to promote the value maintenance and appreciation and prevent the losses thereof; in case any entity or individual causes any loss of state-owned assets by misusing authority or neglecting duty, it/he shall assume legal liabilities in accordance with law.
In case any entity or individual, in the process of enterprise restructuring, merger, division or affiliated transactions, causes losses of state-owned assets by way of transferring at a low price, conspiring to distribute them secretly, providing guarantee with them without authorization or any other way with violation of the provisions on the management of state-owned assets, it/he shall assume legal liabilities in accordance with law.
Article 58 The collectively-owned realties and chattels shall contain:
(1) Lands, forests, mountains, grasslands, wastelands and tidal flats that shall be in the ownership of collective as provided for by law;
(2) Buildings, production facilities, farmland, and water conservancy facilities that are in the ownership of collective;
(3) Facilities for education, science, culture, sanitation and sports, etc. that are in the ownership of collective;
(4) Other realties and chattels that are in the ownership of collective.
Article 59 The realties and chattels that are in the ownership of a farmers' collective shall be collectively owned by all the members of this collective.
The following issues shall be determined by the members of the collective according to the statutory procedures:
(1) Land contracting plan and whether to contract out a land to an entity or individual not included in the collective;
(2) Adjustment of the contracted lands among the right holders of the contracted management of land;
(3) Methods for using and distributing such fees as land compensation fees;
(4) The alteration of ownership or any other related issue of an enterprise set up with the funds invested in by the collective; and
(5) Other issues provided for by any law.
Article 60 As regards any collectively-owned land, forest, mountain, grassland, wasteland or tidal flat, the ownership thereof shall be exercised according to the provisions as follows:
(1) In case it is owned by a farmers' collective of a village, the collective economic organization or the villagers' committee of the village shall exercise the ownership on behalf of the collective;
(2) In case it is owned by two farmers' collectives or more in a village, all the collective economic organizations or villagers' groups of the village shall exercise the ownership on behalf of the collective; and
(3) In case it is owned by a farmers' collective of a town, the collective economic organization of the town shall exercise the ownership on behalf of the collective.
Article 61 As regards any realty or chattel owned by an urban collective, this urban collective has the rights to possess, use, seek profits from and dispose of it according to the related laws and administrative regulations.
Article 62 The collective economic organization, villagers' committee or villagers' group shall, in accordance with the relevant laws, administrative regulations, articles of association and village regulations and villagers' pledges, publicize the situation of the properties owned by a collective to the members of the collective.
Article 63 Collectively-owned properties shall be protected by law, and any entity or individual may not encroach, plunder, privately distribute, hold back or destroy them.
Where the legitimate rights and interests of any member of the collective are infringed upon by any decision made by a collective economic organization, villagers' committee or the principle thereof, such member may require the people's court to cancel the decision.
Article 64 An individual has the right to own his legal income, premise, household goods, production instruments, raw materials as well as other realties and chattels.
Article 65 The legal savings, investments and the proceeds therefrom of an individual shall be protected by law.
An individual's right of inheritance as well as other legal rights and interests shall be protected by the state in accordance with law.
Article 66 An individual's legal properties shall be protected by law, and any entity or individual may not encroach, plunder or destroy them.
Article 67 The state, any collective or individual may invest to set up a limited liability company, a company limited by shares or any other form of enterprise. In case the state, a collective or an individual invest the realties or chattels it owns in an enterprise, the contributor shall, in accordance with the agreement or on the basis of his proportion of investment, enjoy rights such as obtaining asset returns, making important decisions and selecting operators and managers and perform their duties.
Article 68 In accordance with the laws, administrative regulations and its articles of association, an enterprise legal person is entitled to possess, utilize, seek profits from and dispose of any realty or chattel it owns.
As regards the rights over the realties and chattels owned by a legal person other than an enterprise legal person, the provisions of the related laws, administrative regulations and its articles of associations shall apply.
Article 69 The realties and chattels owned by social organizations in accordance with law shall be protected by law.
(to be continued) | 
