Circular of the Ministry of Housing and Urban-Rural Development on Matters concerning the Implementation of the Asset Valuation Law to Regulate the Administration of the Real Estate Valuation Industry

　　Jian Fang [2016] No. 275

　　December 6, 2016

　　Housing and rural-urban development departments of all provinces and autonomous regions, and Beijing Municipal Commission of Housing and Urban-Rural Development, Shanghai Housing and Urban-Rural Development Management Committee, Tianjin Municipal Bureau of Land Resources and Housing Administration and Chongqing Administration of Land, Resources and Housing:

　　In order to implement the Asset Valuation Law to regulate the administration of the real estate valuation industry and to promote the healthy development of the real estate valuation industry, the relevant matters are hereby notified as follows:

　　I. Fully understand the significance in implementing the Asset Valuation Law
　　The Asset Valuation Law (the "Law") is an important law for regulating the valuation industry, and the issuance of the Law for implementation has great significance in regulating the real estate valuation behaviors, protecting the legitimate rights and interests of the parties involved and public interests, promoting the healthy development of the real estate valuation industry and maintaining order in the real estate market. In this regard, the housing and urban-rural development (real estate) authorities at all levels and real estate evaluation industry associations shall fully recognize the importance and urgency of implementing the Law and seize the opportunity of the Law's implementation to further regulate the administration of the real estate valuation industry, effectively make the transition from system to system in an orderly manner and comprehensively improve the management level in the real estate valuation industry.

　　II. Implement a record-filing system for the administration of real estate valuation agencies
　　As of December 1, 2016, a record-filing system shall be implemented for the administration of real estate valuation agencies in lieu of the previous qualification approval system. The real estate valuation agencies shall be established subject to Articles 15, 27 and 28 of the Assets Valuation Law. For The provincial housing and urban-rural development (real estate) departments shall process the record-filing of qualified real estate valuation agencies and issue to them a record-filing certificate in a uniform format (the sample certificate shall be given separately); grades of qualification shall be indicated on the record-filing certificates of real estate valuation agencies meeting the standards for the corresponding grades as prescribed in the Administrative Measures for Real Estate Valuation Agencies.

　　III. Effectively make the transition from the qualification approval system to the record-filing system for real estate valuation agencies
　　For real estate valuation agencies that have already obtained qualifications, their original qualifications shall continue to be valid within their validity period; and 30 days prior to the expiration of their original qualifications, they shall submit an application for record-filing to the provincial housing and urban-rural development (real estate) departments, which shall in turn approve the filing, issue a record-filing certificate with the corresponding grade of qualification indicated thereon, and reclaim the original qualification certificate to the extent that the record-filing conditions are satisfied; the agencies that fail to file an application within the prescribed time limit shall not be allowed to engage in real estate valuation activities. Where real estate valuation agencies that have already obtained qualifications apply for re-registration due to any change in name, legal representative or managing partner, organizational form, address or other matters, the record-filing certificate shall be issued upon approval in lieu of the qualification certificate.
　　For real estate valuation agencies currently holding a Grade III qualification that fail to meet the conditions set in the Law upon the expiration of their qualification, they shall not be approved to file a record or engage in real estate valuation activities.

　　IV. Continue to implement the access administration system on real estate valuation practitioners
　　As stipulated in the Law on the Administration of Urban Real Estate, real estate valuation practitioners shall continue to be subject to professional qualification management for industry access under the same administrative bodies and measures, and shall be allowed to engage in real estate valuation activities only after they obtain the professional qualification of real estate appraiser and complete registration as such. For all types of real estate valuation business, at least two real estate appraisers are required to perform work and sign on real estate valuation reports. Violations of the the above-mentioned provisions shall be subject to penalties by the relevant housing and urban-rural development (real estate) departments in accordance with the Law on the Administration of Urban Real Estate, the Asset Valuation Law and the Administrative Measures for Certified Real Estate Appraisers.

　　The Ministry will formulate the Measures for Regulation of the Real Estate Valuation Industry under the Law on the Administration of Urban Real Estate and the Asset Valuation Law, and revise the basic standards for real estate valuation (National Standard – Code for Real Estate Valuation GB / T 50291-2015) when appropriate. Prior to the promulgation of the Measures for Regulation of the Real Estate Valuation Industry, the record-filing administration of real estate valuation agencies and other matters shall be handled provisionally in accordance with this Circular. In case of problems encountered during the implementation of this Circular by local departments, please promptly report to the Real Estate Market Regulation Department of the Ministry.