• Document Number：Order No.590 of the State Council
• Area of Law： Land
• Level of Authority： Administrative Regulations
• Date issued：01-21-2011
• Effective Date：01-21-2011
• Issuing Authority： State Council
• Status： Effective

Order of the State Council
(No.590)
The Regulation on the Expropriation of Buildings on State-owned Land and Compensation, as adopted at the 141st executive meeting of the State Council on January 19, 2011, is hereby issued and shall come into force on the date of issuance.
Premier Wen Jiabao
January 21, 2011
Regulation on the Expropriation of Buildings on State-owned Land and Compensation
Chapter I General Provisions
Article 1 This Regulation is formulated for purposes of regulating the expropriation of buildings on state-owned land and corresponding compensation, maintaining public interests and protecting the legitimate rights and interests of owners of the buildings to be expropriated.
Article 2 Where a building of any entity or individual on state-owned land is expropriated for public interest, the owner of the expropriated building (hereinafter referred to as the “owner”) shall be fairly compensated.
Article 3 The principle of “democratic decision-making, due process and open results” shall be followed in the building expropriation and compensation.
Article 4 The people's government at the city or county level shall be responsible for the building expropriation and compensation within its administrative region.
The building expropriation department as determined by the people's government at the city or country level (hereinafter referred to as the “building expropriation department”) shall organize and implement the building expropriation and compensation within its administrative region.
The relevant departments of the people's government at the city or county level shall, according to the provisions of this Regulation and the division of duties as prescribed by the people's government at the corresponding level, cooperate with each other to ensure smooth building expropriation and compensation.
Article 5 The building expropriation department may designate a building expropriation implementing entity to undertake the specific work on building expropriation and compensation. A building expropriation implementing entity shall not operate for profits.
The building expropriation department shall oversee the building expropriation and compensation activities of a building expropriation implementing entity within the authorized scope, and assume the legal liabilities for the consequences of such activities.
Article 6 The people's government at a higher level shall strengthen its oversight of the building expropriation and compensation work of the people's government at a lower level.
The competent department of housing and urban-rural development under the State Council and those of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, jointly with the public finance, land and resources, development and reform and other relevant departments at the corresponding level, strengthen the guidance on the implementation of building expropriation and compensation.
Article 7 Any organization or individual shall be entitled to report any violation of this Regulation to the relevant people's government, the building expropriation department or any other relevant department. The relevant people's government, the building expropriation department or any other relevant department receiving a report shall verify and deal with it in a timely manner.
Supervisory organs shall strengthen the supervision of the governments, the relevant departments or entities and their staff participating in the building expropriation and compensation.
Chapter II Expropriation Decisions
Article 8 Where, for public interests such as safeguarding the national security and promoting the national economic and social development, it is necessary to expropriate a building under any of the following circumstances, the people's government at the city or county level shall make a decision to expropriate the building:
(1) necessary for national defense and foreign affairs;
(2) necessary for the construction of energy, transportation, water and other infrastructures as organized and implemented by the government;
(3) necessary for a public cause such as science and technology, education, culture, health, sports, environment and resource protection, disaster prevention and mitigation, protection of cultural relics, social welfare or municipal utilities as organized and implemented by the government;
(4) necessary for the construction of a social security housing project as organized and implemented by the government;
(5) necessary for the rebuilding of an old urban area where dilapidated buildings concentrate and infrastructure lags behind as organized and implemented by the government according to the relevant provisions of the Urban and Rural Planning Law; or
(6) necessary for any other public interest as prescribed by a law or administrative regulation.
Article 9 According to Article 8 of this Regulation, all kinds of construction activities requiring expropriation of buildings shall comply with the national economic and social development plan, overall land use plan, urban and rural plan and special purpose plans. The construction of social security housing projects and the rebuilding of old urban areas shall be incorporated into the annual plan for national economic and social development at the city or county level.
Public opinions shall be extensively solicited in the making of the national economic and social development plan, overall land use plan, urban and rural plan and special purpose plans, and scientific demonstration shall be made.
Article 10 The building expropriation department shall draft an expropriation and compensation plan and report it to the people's government at the city or county level.
The people's government at the city or county level shall organize the relevant departments to demonstrate the expropriation and compensation plan and publish it for public opinions. The period for solicitation of public opinions shall be no less than 30 days.
Article 11 The people's government at the city or county level shall publish in a timely manner the public opinions solicited and the amendments made according to the public opinions.
Where buildings need to be expropriated due to the rebuilding of an old urban area, if the majority of the owners consider that the expropriation and compensation plan does not conform to the provisions of this Regulation, the people's government at the city or county level shall organize a hearing attended by the owners and the representatives of the public, and amend the plan according to the results of the hearing.
Article 12 Before making a decision on building expropriation, the people's government at the city or county level shall make a social stability risk assessment according to the relevant provisions, and if the decision involves a large number of owners, it shall be made at the executive meeting of the government upon discussion.
Before a decision on building expropriation is made, the compensation fees for expropriation shall be ready in full amount, deposited in a special purpose account and used for designated purpose only.
Article 13 The people's government at the city or county level shall, after making a decision on building expropriation, announcement it to the public in a timely manner. The announcement shall state the expropriation and compensation plan, rights to administrative reconsideration and administrative lawsuit and other matters.
The people's government at the city or county level and the building expropriation department shall do a good job in the publicity and explanation of building expropriation and compensation.
Where a building is expropriated according to law, the corresponding right to use state-owned land shall be retracted at the same time.
Article 14 An owner against a building expropriation decision made by the people's government at the city or county level may apply for administrative reconsideration or file an administrative lawsuit according to law.
Article 15 The building expropriation department shall organize surveys and registration of the ownership, location, use, construction area, etc. of buildings within the scope of expropriation, and the owners shall provide cooperation. The survey results shall be announced to the owners within the scope of expropriation.
Article 16 After the scope of expropriation is determined, acts which lead to an improper increase of compensation fees, such as new construction, expansion or reconstruction of a building or a change of the use of a building within the scope of expropriation, shall be prohibited. For such acts in violation of the relevant provisions, no compensation shall be made.
The building expropriation department shall notify the relevant departments in writing of suspending the handling of relevant formalities for the matters as listed in the preceding paragraph. A written notice on suspending the handling of relevant formalities shall state the period of suspension, which shall be no longer than one year.
Chapter III Compensation
Article 17 The compensation granted to an owner by the people's government at the city or county level which makes a building expropriation decision shall include:
(1) compensation for the value of the building expropriated;
(2) compensation for the relocation or temporary settlement resulting from the building expropriation; and
(3) compensation for the production or business interruption losses resulting from the building expropriation.
The people's government at the city or county level shall formulate subsidization and incentive measures to give subsidies and incentives to the owners.
Article 18 In case of expropriation of personal housing, if the owner meets the housing security conditions, the people's government at the city or county level which makes the building expropriation decision shall give priority to providing housing security for him. The specific measures shall be formulated by a province, autonomous region or municipality directly under the Central Government.
Article 19 The compensation for the value of the building expropriated shall not be less than the market price of real estate similar to the building expropriated on the date of announcement of the building expropriation decision. The value of the building expropriated shall be assessed by an eligible real estate price assessment institution according to the assessment measures for building expropriation.
An owner who opposes to the assessed value of the building to be expropriated may apply to the real estate price assessment institution for reassessment. An owner who opposes to the reassessment result may apply to the real estate price assessment expert committee for appraisal.
The administrative department of housing and urban-rural development under the State Council shall formulate the assessment measures for building expropriation, in the process of which the public opinions shall be solicited.
Article 20 The real estate price assessment institution shall be decided by the owners through consultation. If the consultation fails, the institution shall be determined according to the majority's decision, at random or by any other means, and the specific measures shall be formulated by a province, autonomous region or municipality directly under the Central Government.
A real estate price assessment institution shall carry out assessment of buildings to be expropriated in an independent, objective and impartial manner, and no entity or individual shall interfere with it.
Article 21 An owner may choose either monetary compensation or exchange of titles.
If an owner chooses exchange of titles, the people's government at the city or county level shall provide a building for exchange of titles, and calculate and settle with the owner the difference between the value of the expropriated building and the value of the building provided for exchange of titles.
If personal housing is expropriated due to the rebuilding of an old urban area, and an owner chooses exchange of titles in the rebuilt area, the people's government at the city or county level which makes the building expropriation decision shall provide a building in the rebuilt area or in a nearby area.
Article 22 In case of relocation due to building expropriation, the building expropriation department shall pay relocation fees to the owners; and if an owner chooses exchange of titles, the building expropriation department shall, prior to delivery of the building for exchange of titles, pay temporary settlement fees to the owner or provide the owner with a temporary dwelling.
Article 23 The compensation for production or business interruption losses resulting from building expropriation shall be determined on the basis of the proceeds from the building before expropriation, duration of production or business interruption and other factors. The specific measures shall be formulated by a province, autonomous region or municipality directly under the Central Government.
Article 24 The people's government at the city or county level and the relevant departments thereof shall strengthen according to law the supervision and administration of construction activities, and deal with according to law constructions in violation of the urban and rural plan.
The people's government at the city or county level shall, before making a building expropriation decision, organize the relevant departments to survey, confirm and deal with the unregistered buildings within the scope of expropriation. For buildings confirmed to be legal and temporary buildings not exceeding the approved period, compensation shall be made; and for buildings confirmed to be illegal and temporary buildings exceeding the approved period, no compensation shall be made.
Article 25 The building expropriation department and an owner shall, according to this Regulation, enter into a compensation agreement on the method, amount and time of payment of compensation, location and area of the building provided for exchange of titles, relocation fees, temporary settlement fees or temporary dwelling, production or business interruption losses, time limit for relocation, transition manner, transition period and other matters.
After a compensation agreement is signed, if one party fails to perform any obligation under the compensation agreement, the other party may file a lawsuit according to law.
Article 26 If a compensation agreement cannot be reached by the building expropriation department and an owner within the contracting period as determined in the expropriation and compensation plan, or the owner of the building to be expropriated is unclear, the building expropriation department shall report it to the people's government at the city or county level which makes the building expropriation decision for making a compensation decision under the expropriation and compensation plan in accordance with this Regulation, which shall be announced within the scope of expropriation.
A compensation decision shall be fair, and include the relevant matters in a compensation agreement as prescribed in paragraph 1 of Article 25 of this Regulation.
An owner who disagrees on a compensation decision may apply for administrative reconsideration or file an administrative lawsuit according to law.
Article 27 Compensation shall be made before relocation in building expropriation.
After the people's government at the city or county level which makes a building expropriation decision compensates an owner, the owner shall complete relocation within the time limit for relocation as agreed on in the compensation agreement or as determined in the compensation decision.
No entity or individual shall force an owner to relocate by violence or threat, by cutting off the supply of water, heating, gas or electricity or road passage in violation of the relevant provisions or by any other illegal means. Construction entities shall be prohibited from involvement in relocation activities.
Article 28 Where an owner does not apply for administrative reconsideration or file an administrative lawsuit within the statutory time limit and fails to relocate within the time limit as determined in the compensation decision, the people's government at the city or county level which makes the building expropriation decision shall apply to the people's court for enforcement according to law.
Documents on the compensation amount, account number of the related special deposit account, location and area of the building provided for exchange of titles or the temporary dwelling, etc. shall be attached to the written application for enforcement.
Article 29 The building expropriation department shall establish building expropriation and compensation files according to law, and announce the information on division of household and compensation to the owners within the scope of expropriation.
The audit organ shall strengthen the supervision over the management and use of compensation fees for expropriation, and announce the audit results.
Chapter IV Legal Liability
Article 30 Where, in building expropriation and compensation, any functionary of the people's government at the city or county level or the building expropriation department fails to perform his duties as set out in this Regulation, or abuses his power, neglects his duties, practices favoritism or makes falsification, the people's government at the higher level or at the same level shall order him to make a correction, and circulate a notice of criticism of him; if any loss is caused, he shall be liable for compensation according to law; the directly responsible person and other directly liable persons shall be subject to disciplinary actions according to law; and if a crime is constituted, the offenders shall be subject to criminal liability according to law.
Article 31 Whoever forces an owner to relocate by violence or threat, by cutting off the supply of water, heating, gas or electricity or road passage in violation of relevant provisions or by any other illegal means, causing losses, shall be liable for compensation according to law; and the directly responsible person and other directly liable persons shall be subject to criminal liability according to law if a crime is constituted, be subject to disciplinary actions if no crime is constituted, or be subject to public security administration punishment according to law if a violation of public security administration is constituted.
Article 32 Whoever obstructs lawful building expropriation and compensation by violence, threat or any other means shall be subject to criminal liability if a crime is constituted; or be subject to public security administration punishment if a violation of public security administration is constituted.
Article 33 Whoever embezzles, misappropriates, secretly partitions, withholds or defaults compensation fees for expropriation shall be ordered to make a correction, the relevant amount shall be recovered, illegal gains shall be returned within a prescribed time limit, and a notice of criticism or a warning shall be given to the relevant liable entity; if any loss is caused, the violator shall be liable for compensation; and the directly responsible person and other directly liable persons shall be subject to criminal liability according to law if a crime is constituted or be subject to disciplinary actions according to law if no crime is constituted.
Article 34 Where a real estate price assessment institution or a real estate valuer provides a false or seriously flawed assessment report, the certificate-issuing organ shall order it or him to make a correction within a prescribed time limit, give a warning to it or him, impose a fine of not less than 50,000 yuan but not more than 200,000 yuan on it or a fine of not less than 10,000 yuan but not more than 30,000 yuan on him, and record it into its or his credit file, and if the circumstances are serious, revoke the qualification certificate or registration certificate; if losses are caused, it or he shall be liable for compensation according to law; and if a crime is constituted, it or he shall be subject to criminal liability according to law.
Chapter V Supplementary Provisions
Article 35 This Regulation shall come into force on the date of issuance. The Regulation on the Dismantlement of Urban Houses issued by the State Council on June 13, 2001 shall be abolished simultaneously. Projects for which the building demolition and relocation permits have been obtained according to law before the implementation of this Regulation shall continue to be governed by the former provisions, but the government shall not order the relevant departments to conduct forced demolition and relocation.