Primary Contents of the Draft Law on Property Rights

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Primary Contents of the Draft Law on Property Rights

The draft law on property rights, with 5 chapters and 268 items, defines and safeguards all the property rights related to every citizen’s fundamental rights.
The first chapter is General Principal, with 44 items.
•It defines that the property rights is the ownership, usufruct, and security interest for the real and movables properties. Property owners shall be given
reasonable compensation when their properties are taken over for public use.

Those who refuse to make the compensation will bear legal responsibilities;
•Real estate should enregister in the local institution, otherwise it is not property right. The enregister fee will be decided by State Council, and the local institution should not charge fees based on the acreage, price and cubage of the real estate.

The second chapter is Ownership, with 78 items.
• It defines the state-owned, collective and private ownership respectively, and the law protects all these three kinds of ownership.
• The administrative staff in state-owned enterprises shall bear the civil, administrative or even criminal liabilities if they transfer the ownership of the public property by buying stocks or selling companies at low prices, which lead to the public assets loss.
• Private saving, investment and benefits are protected by the law, and so is the heirdom of private property.
• It also defines that building is owned by the resident, the ownership of parking lots, grassland and clubs in resident community should be shared by the residents, rather than the real estate developers. The meeting of all the residents has the right to change the estate management company if they are not satisfied with the service provided by the company. If the real estate developers want to change the house into the building for business use, it must be agreed by all the residents. All the residents in a resident community have the rights to stop invasion and ask for compensation.
• According to the draft law, if a house-owner fits up his house, the fitment should not affect the neighbours. If somebody pick up something lost by other people, he should inform the owner or submit to related bureaus within 20 days, and the owner should pay the safekeeping fee, and should pay the rewards according to his promise.

The third chapter is Usufruct, with 69 items.
• According to the draft law, Usufruct includes the Contract for the managerial right of the Land, the Use of the constructive land, the Use of curtilage and Resident right.
• People who contracts the land can transfer the land to the third people.
• Anyone is not permitted to defalcate and impropriate the compensation fund for expropriating the land.
• When the use of the constructive land expire, people should apply for extending the time limit in advance of one year before the expiration;
• One rural family only has one curtilage, and can transfer to other rural people, but cannot change the use of curtilage. The urban citizen is not allowed to buy the land saved for farmers’ use so as to safeguard farmers’ fundmental property rights;
• People who live in other’s house can apply for the resident right, and he need not pay for the usage fee and great maintain fees except for the estate management fees, he has no right to rent the house according to the draft law.

The fourth chapter is Security Interest, with 67 items.
• It mainly includes the hypothec, pawnage and lien right.
• Some institutional units aiming to the public benefit, such as hospitals, schools and kindergartens are not permitted to be hypothecated.
• The pawnage right includes the pawnage of movables and rights.
• The rights that can be impawned are:
? Bill of exchange, cheque, and cashier’s cheque;
? Bonds and certificate of deposits;
? Bills of depot and lading;
? Transferrable stock rights;
? Transferrable appropriative right of registered trade mark, patent right, copyright and other intellectual rights;
? The rights of charge on road, telecom network and others;
? Other property rights regulated by the law.

The fifth chapter is Possession, with 10 items.
• Possession is defined as the actural control on the real estate and movabless.

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