[Direct answer]Those that meet the requirements can enter the market. Article 63 of the Land Administration Law of the People's Republic of China (amended in 2019 and implemented on January 1, 2020) stipulates that for collective construction land designated for industrial, commercial, and other business purposes by the overall land use plan and urban and rural planning and registered in accordance with the law, the land owners may transfer it to units or individuals for use through methods such as assignment or lease, and shall sign a written contract that specifies the land boundaries, area, construction start date, use period, land use purpose, planning conditions, and other rights and obligations of both parties. Such assignments or leases shall be approved by more than two-thirds of the members of the villagers' meeting of the collective economic organization or more than two-thirds of the villagers' representatives. Therefore, collective construction land that meets the planning and registration requirements and follows the democratic decision-making procedures can enter the market, with the same entry, equal rights, and equal prices as state-owned land, but its use, procedures, and income distribution must comply with laws and regulations.
1. Problem background and typical scenarios
Rural collective economic organizations own idle commercial construction land and hope to introduce industrial projects to generate profits, but they are concerned about "whether they can enter the market, how to handle the procedures, and who will benefit from the profits". There are also enterprises that want to acquire commercial land in rural areas, but they are not familiar with the market entry procedures and risks. The entry conditions and democratic decision-making procedures are key thresholds.
II. Key points of dispute
First, the statutory conditions and applicable scope for entering the market. Second, the implementation of the consent procedure of the villagers' meeting. Third, the necessary contents of the transfer and lease contracts. Fourth, the distribution and supervision of land revenue. Fifth, the legal effectiveness and risks of not entering the market in accordance with the law.
III. Professional analysis by Henglue Lawyers
Henglue Lawyer explained it from three aspects: conditions, procedures, and risks. Firstly, legal conditions: the land must be planned for industrial, commercial, or other operational purposes and have been legally registered as collective operational construction land. Land that does not comply with planning or belongs to residential plots or public welfare land is not eligible for this market entry path. Secondly, democratic procedures: market entry must be approved by more than two-thirds of the members of the collective economic organization's villagers' meeting or more than two-thirds of the villagers' representatives. Improper procedures may lead to disputes over the validity of resolutions and contracts, so it is necessary to keep meeting records and voting materials. Thirdly, contract content: the written contract should specify the land area, construction start date, usage period, land use, planning conditions, and the rights and obligations of both parties to avoid disputes arising from unclear agreements. Fourthly, income distribution: the land appreciation income should be reasonably distributed among the collective and its members and managed and used in accordance with regulations. The distribution plan should be determined through democratic procedures and the accounts should be made public. Fifthly, risk warnings: failure to comply with legal procedures or change the agreed use may result in contract invalidation, land recovery, or administrative penalties. After obtaining land use rights, enterprises should legally handle planning and construction procedures and not arbitrarily change the use or leave the land idle. When promoting such market entry in Beijing, the district-level government usually coordinates and formulates corresponding supervision rules.
IV. Practical suggestions and legal basis
Action suggestions: First, confirm the land planning use and registration status; Second, perform the voting procedures in accordance with the law at the villagers' meeting or representative meeting and keep the records; Third, sign a comprehensive written contract, specifying the use and duration; Fourth, regulate the distribution and use of profits and accept supervision. For collective land and real estate, you can refer to the relevant provisions.Real estate transactions and construction projectsFor matters involving land expropriation and administrative management, you may refer to the following documents for reference:Land expropriation and demolition, and administrative litigationLegal basis: Articles 63 and 64 of the Land Administration Law of the People's Republic of China (amended in 2019 and implemented on January 1, 2020), Article 361 of the Civil Code of the People's Republic of China and related provisions. The specific application shall be subject to the currently effective laws, regulations and local policies.
5. Henglue Law Firm's Reminder
Firstly, to enter the market, both planning and registration must meet the standards. Secondly, it is an indispensable procedure to obtain the consent of a legally prescribed proportion of villagers at a meeting. Thirdly, the more clear the contract terms are, the fewer disputes there will be in the future. Fourthly, the distribution of profits should be decided democratically and the accounts should be made public. For matters involving the entry of collective construction land into the market and contracts, it can be handled through the following procedures:Real estate transactions and construction projectsWe can provide a comprehensive solution for services related to land administration management.Land expropriation and demolition, and administrative litigationFor reference, you can check the sections related to corporate investment and contractsBusiness and contract disputes in enterprisesFor any questions regarding difficult situations, please feel free to consult us.Special servicesTeam.
VI. Frequently Asked Questions
Q1: Can collective-operated construction land be put up for sale?
For those plots of land that are used for industrial or commercial purposes as determined by the planning and have been legally registered, they may be transferred or leased out. This requires the approval of more than two-thirds of the members of the villagers' meeting or the villagers' representatives, and a written contract must be signed.
Q2: What procedures do I need to go through to enter the market?
Generally, it includes planning confirmation, registration in accordance with the law, democratic voting approval, signing of transfer or lease contracts, and handling relevant procedures. Improper procedures may affect the validity of the agreement, so it is necessary to keep all relevant documents intact.
Q3: Who will receive the land revenue?
The income shall be reasonably distributed among the collective and its members. The distribution plan shall be determined through democratic procedures and the accounts shall be made public. The specific distribution methods shall be subject to local regulations and collective decision-making, and shall be subject to supervision.
Q4: Can we change the land use?
It is not allowed to make unauthorized changes. The contract should clearly specify the purpose and planning conditions. Making unauthorized changes may result in the termination of the contract, the recovery of the land, or administrative penalties. If adjustments are necessary, the relevant procedures for modification should be carried out in accordance with the law.
Q5: What should I pay attention to when signing a contract to enter the market?
It should specify the boundary area, the construction deadline, the usage period, the land use, the planning conditions, and the rights and obligations of both parties, and stipulate the liability for breach of contract. It is recommended to conduct a legal review before signing the contract to prevent risks.
The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.