Buying Property In China
Chinese property law has existed in various forms for centuries. After the Chinese Communist Revolution in 1949, most land is owned by collectivities or by the state; the Property Law of the People's Republic of China passed in 2007 codified property rights.
buying property in china
An investor who wants to invest or develop land or property in China must bear in mind China's property laws, most notably the property law introduced in 2007,[7] which for the first time protects the interest of private investors to the same extent as that of national interests.[8]
Ownership rights are protected under Article 39 of The Property Law of the People's Republic of China, which gives the owner the right to possess, utilize, dispose of and obtain profits from the real property. However, this right has to comply with laws and social morality. It can harm neither public interests nor the legitimate rights and interests of others.[9]
In China, there is no unified official procedure for the rules on the registration of land-use rights and the ownership of property.[28] All interests in land must be recorded in the official government register. This register is proof of ownership. However, different interests might be registered under different registries.[29] The Property Law only offers a general guideline as to recordation. Peter Ho has described the recordation of Chinese property rights per institution as it exists until 2014. An overview is in the table below.
Article 10(2)(l) requires a unified registration system for all real property rights, but this unified system is currently only adopted in tier one cities[30] like Beijing and Shanghai. The unification of interests in a single registry is still not prevalent in the smaller cities and will take more time before its implementation.[29]
The rights holder is entitled to "appropriate compensation" in the first two situations.[40] As the state owns the land, compensation is not made for the loss of the rights holder's land use rights,[41] but for the private property which he had lost. It is made either in cash (based on market prices) and accounts for any moving expenses or resettlement subsidies, or in kind (in the form of a replacement structure).[42]
With the passing of the Property Law, a number of local legislators fear that "while the new property law would undoubtedly increase protection for home owners and prevent land seizures, it would also erode China's socialist principles."[50]
The Shimen real estate exhibition fair, where Deng Bibo spoke, showcased 19 developers and 10,000 homes. The county government offered coupons valued at $442 for any potential homebuyers, and promised that it would subsidize 50% of the property tax of any home sold. Local officials in other counties have also taken matters into their own hands: Officials in Yulin, Guangxi, went door to door to tell villagers to buy at least 8,000 houses this year collectively, according to Chinese media.
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(3) foreign individuals are not allowed to freely purchase properties in China, and are restricted to buy only one property for self-use purpose provided the foreign buyers have been worked or studied in China for up to one year.
(4) besides the aforesaid curbing measures, the most effective way of cooling off foreign capital zeal in China real estate property market is to filter the inflow of foreign hot money. Only foreign exchanges that meet the requirement may be wired and converted into RMB (Chinese official currency) in China.
With Decree 171the massive inflow of foreign hot money into China property market has suddenly braked hard to a halt. On the other hand, we have seen more and more foreign owners start selling their China properties, many believe that China property market has reached the peak point and may turn downward soon. Unfortunately, this has proved to be wrong till now.
You see, Decree 171 has mainly focused on fending off foreign speculative investment in China property market and shed no light on how foreign corporate owners that have bought China properties therebefore can sell such China properties.
In the past, we used to know one bank in China that offers a solution to such foreign corporate property owners to entrust a foreigner to receive such sale proceeds and then purchase foreign exchanges and remit the same out of China. But later last year (2021), they have stopped that practice closing the only channel that could have been used by foreign property owners to sell China properties. So far there seems no way for foreign company owners to sell their China properties.
I remembered some 15 years ago, when I helped my first client in selling her property in China, it has been very onerous process of visiting the foreign exchange authorities quite a number of times despite that I had been familiar with foreign exchange law before that. Things have evolved in the regulation: loosened in some aspects, and tightened in other aspects.
In the past, from our experience, seldom would the bank ask how the foreign owners come to own the China properties they sold. In other words, so long as a foreigner name is on the title deed of the property, he has the right to sell it and send the sale proceeds out of China. But recent years, some banks started asking how the foreign owners come to acquire the China properties.
(b) as a result of inheritance or gift from prior China owners. In this regard, please note that some first-tiered cities in China like Beijing, Shenzhen and Guangzhou, foreigners are not allowed to receive gift of China properties if they are not qualified for purchasing China property as prescribed under Decree 171.
As you can see, much of the work for repatriating money of property sale proceeds out of China is to be done with banks in China. From our more than a decade of experience, we have found out that due to different internal risk control policies, banks vary a lot in their dealings of foreign exchange deals. For example, foreign-invested banks are more flexible than most domestic banks in China. Small banks may be more willing to help with difficult tasks big banks are wary of.
BEIJING (Reuters) -The United States is violating the principles of market economy and international trade rules in considering a ban on Chinese citizens buying property in the United States, the Chinese foreign ministry said on Friday.
Texas, Florida, Arkansas and several other states are weighing legislation that would bar Chinese citizens from buying real estate, according to several reports, as tensions rise between the United States and China over national security issues.
GENE WU: It would mean that every permanent resident - so everyone with a green card, everyone who's here on a visa, either invited to do business or invited here to study - would not be able to purchase property, would not be able to own property.
In October, Republicans on the US House Agriculture and Oversight Committee asked the Government Accountability Office to investigate international investments in US farmland, particularly from China, and House Democrats backed a measure to prevent China-owned companies from buying US farmland.
"If left on its own, more homebuyers may stop paying mortgages, [further] straining property developers' cash flows, which in turn could lead to more construction delays and project halts," the Goldman report said.
After two decades of tremendous growth, China's property developers have found it harder to stay afloat under Beijing's crackdown on the companies' high reliance on debt for growth. Highly indebted developers like Evergrande Group defaulted late last year.
Many Chinese and Hong Kong nationals may find this an intriguing option because of the relatively cheaper housing prices in the United States (compared to metro areas of other western countries) and the availability of coastal area properties in many country locations. However, the property market in the United States differs significantly from one place to the next.
In recent years, an increasing number of foreigners, notably from Asian nations such as China and Hong Kong, have made significant investments in the US real estate market. However, before entering the US real estate market, you must first get your feet wet by learning about local buying rules, taxes, and purchasing procedures.
For someone unfamiliar with the US real estate process, the process of purchasing property might be overwhelming. Likewise, buying property in the United States from China or Hong Kong may appear to be a daunting task.
As a result, many Chinese and Hong Kong investors are wary of overseas markets because of their insecurity and the start of an unknown process. However, buying US real estate is a great investment and this article will look at the primary considerations a Chinese and Hong Ko should make while conducting cross-border real estate transactions in the United States.
China is experiencing a property bubble concerns, which was further heightened by the Evergrande issue. In contrast, US real estate investment is relatively stable and secure investment coupled with capital appreciation in USD. In addition, the EB-5 Visa program in the United States rewards larger and more prominent real estate investments for Chinese investors eager to create jobs. Chinese nationals currently account for nearly three-quarters of all EB-5 visa holders in the United States. 041b061a72