[Direct answer]In the Beijing area, if the demolition compensation is unreasonable, there are three standard procedures. Firstly, the affected party may submit a written complaint to the people's government that issued the expropriation decision or its housing expropriation department, explicitly requesting them to perform their duties according to law and reassess the compensation, while retaining the submission evidence. Secondly, if the party is dissatisfied with the response or the authority fails to respond, they may apply for administrative reconsideration to the higher-level people's government in accordance with the "Administrative Reconsideration Law of the People's Republic of China" (amended in 2023 and implemented on January 1, 2024), typically within 60 days from the date they become aware of or should have become aware of the administrative act. If they are dissatisfied with the reconsideration decision, they may file an administrative lawsuit in accordance with the law. Thirdly, they may simultaneously review whether the signed compensation agreement itself is valid. According to Article 148 of the "Civil Code of the People's Republic of China" (implemented on January 1, 2021), if a party uses fraudulent means to make the other party implement a civil legal act against their true intention, the party that was deceived has the right to request the rescission of the act; if the signatory party itself does not have the qualification to sign the agreement, the agreement may also be deemed invalid. According to Article 47 of the "Land Management Law of the People's Republic of China" (amended in 2019 and implemented on January 1, 2020), after the state expropriates land through legal procedures, the local people's governments at or above the county level shall announce and organize the implementation of the expropriation, which directly relates to the qualification judgment of the signatory parties.Land expropriation and demolition, and administrative litigationYou can view similar questions in this column.
I. Problem Background and Typical Scenarios
When parties complain that the compensation is unreasonable, it usually corresponds to several situations: first, the compensation standard is significantly lower than the market price of similar houses in the surrounding area, or there are omissions in the compensation items; second, after signing the compensation agreement, it is found that the house is actually not within the scope of the expropriation, and the agreement cannot be fulfilled; third, the signing party is not the authorized subject, and no one fulfills the promise afterwards; fourth, the compensation funds are delayed for a long time and not in place, or the relocation is required before compensation; fifth, the location, area, and delivery time of the resettlement houses do not conform to the promises. When handling such cases in Beijing, it is usually necessary to first clarify the legality of the expropriation project and the scope of the four boundaries, then review the signing parties and the terms of the agreement, and finally choose the path of performing duties, administrative reconsideration, or litigation. In practice, many disputes over houses on factory premises and village collective land lie in the two points of the qualifications of the signing parties and the scope of the expropriation. For disputes involving the calculation of the operating losses of the factory and the performance of the contract, they can be referred to together.Business and contract disputes in enterprisesColumn.
II. Key points of contention
First, the choice of complaint and relief channels, and how to link up with feedback, duty performance applications, administrative reconsideration, and administrative litigation. Second, the qualifications of contracting parties—who has the right to sign compensation agreements in the name of expropriation. Third, whether the agreement contains fraud, coercion, or major misunderstandings, and whether it falls into revocable or invalid circumstances. Fourth, verification of the expropriation scope and boundaries—whether the houses are actually located within the expropriation red line. Fifth, the completeness of compensation items—whether relocation fees, temporary resettlement fees, and losses from production and business suspension are omitted. Sixth, implementation of the principle of compensation first and relocation later—whether it is in accordance with regulations to require vacating the premises before providing resettlement. Seventh, compensation for losses after the agreement is invalidated or revoked—how to determine the responsible parties and the scope of compensation. Specific determinations shall be based on the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Lawyers
Take the case of disputes over the validity of a demolition compensation agreement for non-residential buildings on collective land represented by Attorney Xie Chao Li of our firm as an example: On May 19, 2022, a company signed a demolition compensation agreement with a village committee, agreeing to demolish the company's buildings with a total area of 4,945.24 square meters and for the village committee to pay a total of 2,599,039 yuan in compensation fees, with a specified schedule for payment. However, after the agreement was signed, the village committee failed to fulfill its obligations, leaving the company uncertain about whether the buildings would be demolished, whether its operations could continue, and whether it would receive compensation as agreed. After repeated unsuccessful negotiations, the company entrusted Attorney Xie Chao Li to represent them. Upon intervening, the attorney applied for government information disclosure and obtained a key finding: the location of the client's factory buildings had not actually been expropriated. Based on this, the attorney concluded that the village committee had fraudulently signed the compensation agreement with the company under the guise of expropriation, seriously infringing the client's legitimate rights and interests. Therefore, the attorney filed an application with the arbitration institution in accordance with Article 148 of the Civil Code of the People's Republic of China, requesting that the agreement be declared invalid. The arbitration tribunal held that according to Article 47 of the amended Land Administration Law of the People's Republic of China in 2020, after the expropriation of land is approved through legal procedures, the local people's governments at or above the county level shall announce and organize its implementation. The village committee did not have the subject qualification to sign a demolition compensation agreement with the company, and the agreement signed by it should be deemed an invalid contract, with the invalid legal acts being legally unenforceable from the outset. Ultimately, the arbitration tribunal ruled that the compensation agreement was invalid, and the expropriating party, which intentionally concealed the scope of the demolition to implement the demolition, should bear compensation liability for the losses suffered by the expropriated party. The lesson of this case is that when encountering unreasonable compensation or unenforceable agreements, in addition to reporting and appealing, it is also necessary to review the validity basis of the agreement itself: whether the signing parties are qualified, whether the scope of the expropriation is true, and whether there was concealment and misleading during the signing process. This case was handled by Beijing Henglu Law Firm.Zhai Chao LiThe attorney (practice certificate number: 11101202311629788, subject to the certificate issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action suggestions: First, verify three things before signing the contract, namely the approval of the expropriation and the scope of the four sides, the qualifications of the contracting parties, and the scope of application of the compensation plan. The main means of verification are to apply for government information disclosure, and the relevant ownership verification can be referred toReal estate transactions and construction projects1. The column; 2. For those who have objections to the compensation standards, they shall first raise them in writing and request a reassessment, and retain the proofs of submission and responses; 3. If they are not satisfied with the responses or if the responses are overdue, they shall apply for administrative reconsideration within a period of 60 days and, if necessary, initiate administrative litigation; 4. If an agreement has been signed but there are circumstances of fraud or unqualified subjects, they shall promptly claim its revocation or invalidation, and simultaneously fix the evidence of losses; 5. If the compensation funds have not been paid, they shall apply for performance of duties and reconsideration litigation to urge payment; 6. If the losses involve the operation of the factory, they shall fully preserve the financial statements, order contracts, and production suspension certificates. Legal basis: Article 47 of the Land Administration Law of the People's Republic of China (amended in 2019, effective from January 1, 2020); Article 148 of the Civil Code of the People's Republic of China (effective from January 1, 2021); Provisions on the scope of reconsideration and application deadlines in the Administrative Reconsideration Law of the People's Republic of China (amended in 2023, effective from January 1, 2024); The Administrative Litigation Law of the People's Republic of China (amended in 2017); Article 27 of the Regulations on the Acquisition and Compensation of Houses on State-Owned Land (effective from January 21, 2011); The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
Firstly, complaints require written evidence, and oral complaints are difficult to prove in subsequent review and litigation. Secondly, it is crucial to verify the scope of expropriation and the qualifications of the parties before signing the agreement, as many disputes originate from the signing process. Thirdly, if the agreement involves fraud or the signing parties are unqualified, the parties may request its revocation or declaration of invalidity, and pursue compensation for losses. Fourthly, there is a 60-day application period for administrative review, so it is not advisable to delay. Fifthly, be particularly vigilant about the waiver of rights clauses in the compensation agreement and check each clause before signing. Sixthly, land expropriation and demolition disputes involve multiple legal relationships in both administrative and civil law. It is recommended to hire professional lawyers as soon as possible to coordinate evidence and procedures to avoid missing remedial opportunities due to improper path selection.
VI. Frequently Asked Questions
Q1: Who can I report to if the demolition compensation is unreasonable?
You can submit a written appeal to the people's government that made the expropriation decision or its housing expropriation department, and apply for them to perform their duties in accordance with the law; if you are not satisfied with the reply, you can apply for administrative reconsideration to the people's government at the next higher level, or bring an administrative lawsuit to the people's court in accordance with the law.
Q2: Can the village committee sign a demolition compensation agreement?
Generally, this is not allowed. According to Article 47 of the Land Administration Law of the People's Republic of China, after the state confiscates land and obtains approval through legal procedures, the local people's governments at or above the county level shall announce and organize its implementation. Village committees generally do not have the qualification to sign land expropriation compensation agreements.
Q3: What should I do if I find that the house hasn't been expropriated after signing the agreement?
It can be claimed that the agreement should be revoked due to fraud, or confirmed as invalid due to the unqualified subject of the contract. At the same time, compensation should be claimed for the losses suffered, and evidence such as the agreement, payment and communication records should be preserved.
Q4: Can I directly sue if I'm not satisfied with the compensation plan?
It is generally recommended to first submit a written application to fulfill the compensation obligation, then appeal against the response, and if necessary, initiate administrative litigation; whether a preliminary procedure is required depends on the type of dispute.
Q5: How to verify whether the house is within the scope of the expropriation?
You can apply to the relevant departments for the disclosure of government information, retrieve documents such as the land expropriation approval, the expropriation announcement, the compensation plan, and the red line map, and check the boundaries of the project and the location of your own house.
The above questions and answers are mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limit.Land expropriation and demolition legal services·Attorney Zhai Chao Li·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 you encounter disputes, please consult a practicing lawyer in time.