[Direct answer]You can refuse obviously low compensation for shantytown renovation, but you cannot passively delay it. You need to follow the correct procedures: the compensation must not be lower than the market price of similar real estate of the expropriated house on the date of the announcement of the expropriation decision. For the expropriation of collective land, it should also ensure that the original living standard will not be reduced and the long-term livelihood will be guaranteed. If the standard is too low, you can take three steps: apply for a review within 10 days after receiving the evaluation report, and if you are not satisfied with the review result, apply for an appraisal by the expert committee; apply for administrative reconsideration within 60 days after receiving the compensation decision or file an administrative lawsuit within 6 months; if you encounter water and electricity cuts or illegal demolition during the refusal to sign the contract, you can sue to confirm the illegality and apply for state compensation. If necessary, you can entrust Beijing Henglue Law Firm to handle the case for you.Land expropriation and demolition lawyer teamFor a detailed evaluation of the plan, please refer to the following document.Beijing Henglue Law Firm.

I. Legal basis and interpretation of provisions

1. Article 19 of the "Regulations on the Acquisition and Compensation of Houses on State-Owned Land" (implemented on January 21, 2011)

The compensation for the value of the expropriated houses shall not be lower than the market price of similar real estate at the time of the announcement of the expropriation decision; the value of the expropriated houses shall be evaluated and determined by a real estate price evaluation agency with corresponding qualifications in accordance with the evaluation method for housing expropriation. If there are objections to the evaluation results, a review of the evaluation may be requested. If there are objections to the review results, an appraisal may be requested from the appraisal expert committee. The first benchmark for judging whether the standard is too low is the market price: errors in the evaluation time point, improper selection of comparable examples, and omissions such as decoration and suspension of production and business will all lower the figures, and each of these can be questioned and documented.

2. Article 48 of the Land Administration Law of the People's Republic of China (effective January 1, 2020)

The land expropriation shall provide fair and reasonable compensation, ensuring that the original living standards of the farmers whose land is expropriated will not be reduced and their long-term livelihoods will be guaranteed; the land compensation fees and resettlement assistance fees for expropriated agricultural land shall be determined according to the comprehensive land price of the district announced by the province; for rural villagers' housing, in accordance with the principle of compensation first and then relocation, and improvement of living conditions, fair and reasonable compensation shall be given by means of rearranging housing plots for house construction, providing resettlement housing or monetary compensation, etc. Classifying historically formed houses as "small property houses", reducing subsidies, only providing monetary compensation and excluding housing plots for resettlement, and citing standards from many years ago to apply a "one-size-fits-all" approach all contradict this article.

3. Practical adjudication guidelines (common reasons for revoking compensation decisions)

There are three common reasons why courts revoke decisions on expropriation compensation and resettlement: insufficient evidence, such as evaluation data being a "preliminary draft" that has not been confirmed after being served; failure to post the expropriation announcement; and excessive compensation for insufficient land; procedural violations, such as failure to guarantee the right to be informed of the evaluation and the right to review; and abnormally low compensation standards, citing outdated methods that result in compensation that is significantly lower than the surrounding market price, violating the principle that living standards should not be lowered. If the administrative act lacks sufficient evidence, the court may revoke it and order it to be redone in accordance with Article 70 of the Administrative Procedure Law. Refusing to sign the contract itself is not illegal, but it requires advancing the process to obtain the opportunity for a new pricing.

II. Henglue Law Firm's Real Cases (Detailed Review)

Review of the case:As early as 1988, 14 villagers in Guangming Village, B District, City A of Hebei Province raised funds to build the "Daughter's Building", which was included in the demolition scope during the urban village renovation. On August 28, 2023, the district government issued and delivered the "Decision on Land Expropriation Compensation and Resettlement", classifying the Daughter's Building as "small property rights housing", which directly led to a reduction in the subsidy standard, failure to guarantee one household one house, and illegal procedures. The villagers appealed against this decision and entrusted Beijing Henglu Law Firm to handle the case for them.Wu JianiThe lawyer, as a joint representative, defended the client's rights and interests through three stages: administrative review (upheld), first-instance litigation (dismissed), and appealing to the provincial high court.

The focus of the controversy:First, after the first-instance court held the trial, it allowed the defendant to supplement evidence twice. Was the procedure illegal? Second, was the determination of the facts of the expropriation incorrect? For example, the court failed to prove that the expropriation announcement was posted, the scope of the expropriation was unclear, the expropriation was carried out using a 14-year-old approval document with a smaller area than the actual one, and selective compensation was applied. Third, the minutes of the relevant thematic meetings treated the daughter's building as a small property house and showed gender inequality, which might conflict with higher-level laws.

Our position and that of the other party are as follows:14 villagers requested to revoke the illegal "Decision on Land Expropriation Compensation and Resettlement" and the review decision, as well as the first-instance judgment, and ordered a fair re-handling; the district government claimed that the daughter's building was a small property right house and the subsidy was compliant, and the municipal government maintained the review decision. The first-instance intermediate court ruled to dismiss the case.

Attorney's Strategy and Legal Opinion:Attorney Wu Jianni raised three points during the trial at the Provincial High Court: Firstly, the first-instance court requested the appellee to supplement evidence twice after the trial, which was a serious procedural violation; Secondly, the appellee failed to prove that the announcement of the expropriation and the scope of the expropriation were unclear, failed to implement the expropriation plan, and the selective compensation violated the principle of fair compensation in the Land Management Law. Moreover, it used the approval of collective construction land expropriation issued 14 years ago to expropriate land and took more than it was entitled to; Thirdly, documents such as the minutes of the special meeting No. XX5 of 2020 contain gender inequality and conflict with higher-level laws, and should be reviewed together.

The court's reasoning and case handling results:The Provincial Higher People's Court found that the B District government's decision on land expropriation compensation and resettlement lacked sufficient evidence and should be revoked according to law. The municipal government's review decision and the first-instance judgment were revoked together due to unclear facts. The district government was ordered to make a new decision within 60 days, and 14 winning judgments were implemented. The compensation standard being too low is not just a matter of "accepting it and moving on". As long as the procedures and evidence are in place, there is still room for a different judgment.

This case is handled by Beijing Henglu Law Firm.Wu JianiThe attorney (practice certificate number: 11101202011245064, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: Will I be subject to forced demolition if I refuse to sign the contract? Is forced demolition legal?

For lawful forced demolitions, there is only one legal path: after the compensation decision is made, if the expropriated person does not apply for administrative reconsideration or file an administrative lawsuit within the statutory time limit, and does not relocate within the time limit specified in the compensation decision, the municipal or county-level government that made the expropriation decision may apply to the people's court for compulsory enforcement in accordance with the law. If the administrative organ organizes the forced demolition by itself, or forces the relocation by cutting off water and electricity, piling up earth and blocking roads, etc., it is illegal and can be sued to confirm the illegality and apply for state compensation. During the refusal to sign, the evidence of the original state of the house (photos, videos, decoration receipts) should be fixed to prepare for the compensation claim in case of forced demolition.

Q2: The evaluation report is too low. Can it still be salvaged after the 10-day review period has passed?

Missing the review period will increase the difficulty of correction, but remedies at the level of compensation decisions are still available: within 60 days after receiving the "Expropriation Compensation Decision", you can apply for a review or sue within six months, claiming that the evaluation process is illegal - such as the evaluation report not being delivered, the right to review not being guaranteed, the selection of the evaluation agency being irregular, and the evaluation time point being wrong, etc., all of which can be used as grounds to negate the validity of the evaluation conclusion. The aforementioned case of revoking the compensation decision won based on the evaluation data not being confirmed and the main evidence being insufficient, showing that the substantive result may not be locked by the review period. The key is to fix the procedural flaws into evidence.

Q3: If the compensation is too low, is it more advantageous to drag out the process for as long as possible?

No. The "hard delay" of not signing the agreement, not reviewing the case, and not filing a lawsuit may lead to the risk of judicial demolition and shrinking room for negotiation. The correct approach is to turn the delay into a procedural process - review and appraisal within 10 days, review within 60 days or file a lawsuit within 6 months. During the procedural process, it is often possible to promote renegotiation. In the aforementioned case, the 14 villagers went through review, first-instance trial, and second-instance trial. In the end, the Provincial High Court ordered the district government to handle the case again within 60 days, relying on the progress of the procedure rather than waiting. Writing down each node in the timetable and advancing them one by one is the correct approach after refusing to sign the agreement.

Q4: How much does it cost to litigate a case like this?

Administrative reconsideration is free of charge; the acceptance fee for administrative litigation cases is 50 yuan per case, with the main cost being attorneys' fees. For expropriation administrative cases, risk-based representation is prohibited by law, and the "no-win, no-fee" commitment is not compliant. Fees are generally charged per case or per procedural stage, and are related to the disputed area, amount, and number of procedures. Before entrusting a lawyer, the client should require the lawyer to list in writing the scope of services (including information disclosure, review and appraisal, reconsideration, litigation, and state compensation) and payment milestones, and incorporate them into the entrustment contract to avoid mid-way price increases or unclear rights and responsibilities.

Q5: Can I directly sue for a compensation plan with low standards?

The compensation plan itself is usually difficult to sue separately. It is generally reviewed together with the expropriation decision and the compensation decision, or the applicant may request a review of the normative documents in the process of reconsideration or litigation. In the aforementioned case, the lawyer proposed a concurrent review of the minutes of the meeting that classified his daughter's building as a small property right house and the unequal treatment of men and women, combined with factual issues such as the failure to post the expropriation notice and the approval of less land than actually occupied. As a result, the Provincial High Court revoked the decision and ordered a re-examination. Applying for information disclosure to fix the plan and approval documents first, and then identifying the illegal points to sue, is a safe and efficient approach.

IV. Suggestions for Protecting Your Rights

  • On the day of receiving the evaluation report, check three items: the evaluation date, comparable examples, and omitted items (decoration, suspension of production and business, and relocation transition). Submit a written review application within 10 days.
  • After receiving the compensation decision, there are two deadlines to consider: a 60-day appeal period and a 6-month statute of limitations for filing a lawsuit. When deciding whether to appeal first or file a lawsuit first, lawyers will determine the best course of action based on the available evidence.
  • For categories such as "treated as small property rights housing" and "capped according to old standards", collect evidence of building approval, historical payments, and one household, one house, and apply for a review of normative documents when necessary.
  • During the rejection of the application, preserve evidence of the original state of the house. If you encounter water and electricity cuts or forced demolition, immediately call the police and keep records to provide evidence for confirming the illegality of the action and seeking compensation from the state.
  • The negotiation window often appears during the progress of the program. It's more effective to negotiate with a list of illegal points than just making verbal demands.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Land expropriation and demolition legal services·Attorney Wu Jiani·Beijing Henglu Law Firm