[Direct answer]The compensation for the transformation of shantytowns is divided into two categories: for the expropriation of houses on state-owned land, the compensation includes the value of the expropriated houses, relocation and temporary resettlement compensation, and compensation for the loss of production and business; the value of the houses shall not be lower than the market price of similar real estate on the date of the announcement of the expropriation decision, and the compensation can be in the form of monetary compensation or property exchange; for the transformation of shantytowns on collective land, fair and reasonable compensation shall be provided. According to the principle of compensating first and then relocating and improving living conditions for rural villagers, the measures include rearranging homesteads for house construction, providing resettlement houses or monetary compensation. The specific amounts shall be determined according to the local compensation plan and legal appraisal. If the compensation is obviously too low, the villagers can request a review, appeal, or file a lawsuit. For more details, please refer to Beijing Henglu Law Firm.Land expropriation and demolition lawyer teamAndOfficial website.

I. Legal basis and interpretation of provisions

1. Articles 17 and 19 of the Regulations on the Acquisition and Compensation of Houses on State-Owned Land (effective as of January 21, 2011)

Article 17 stipulates that the compensation for the expropriated persons by municipal and county-level governments includes three items: compensation for the value of the expropriated houses, compensation for the relocation and temporary resettlement caused by the expropriation of houses, and compensation for the loss of production and business caused by the expropriation of houses. Municipal and county governments may also formulate assistance and reward measures. Article 19 further clarifies that the compensation for the value of the houses shall not be lower than the market price of similar real estate of the expropriated houses on the date of the announcement of the expropriation decision. The compensation shall be evaluated and determined by an appraisal institution with corresponding qualifications in accordance with the appraisal methods for house expropriation. If the expropriated person has objections to the results, he/she may apply for a review or request the expert committee to appraise them. The two articles together constitute the basic framework for compensation for shantytown renovation on state-owned land.

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

When expropriating land, fair and reasonable compensation shall be provided to ensure 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 shall be determined according to the comprehensive land prices of the zones announced by the province, and the compensation standards for the attached objects and seedlings on the ground shall be formulated by the province; for the rural villagers' residences, 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 homesteads for house-building, providing resettlement houses or monetary compensation, etc., and social security expenses shall be arranged. Where the collective land involved in the urban village and suburban shantytown transformation projects, the standards set forth in this article shall apply.

3. Practical adjudication perspective (evaluation and standard disputes)

The amount of compensation is based on the evaluation conducted in accordance with the law. The court focuses on reviewing the following aspects: whether the evaluation agency was selected through consultation with the land expropriated or by majority decision; whether the evaluation report was delivered and the right to review within 10 days was guaranteed; and whether the evaluation date coincided with the date of the announcement of the expropriation decision. The "draft" evaluation report that has not been delivered cannot be used as the basis for compensation. If the evaluation excludes statutory compensation methods, cites outdated standards, or results in a significant decline in the original living standard, the compensation decision may be revoked and the expropriator ordered to make a new decision. The amount of compensation varies greatly depending on the location, ownership nature, and use of the land. Therefore, it is not advisable to compare prices across different cases. Instead, the compensation plan and evaluation standards of the current project should be checked item by item.

II. Real cases of Henglue Law Firm (detailed review)

Review of the case:Li Xiaoqin is a villager of Chenguang Village in XX District of A City, Shaanxi Province. Her No.50 courtyard is the foundation of her family. Since 2022, the local government has repeatedly negotiated with her for the demolition of her house as part of the shantytown renovation project, but Li Xiaoqin refused to sign the agreement due to the lack of transparency in the procedures and unreasonable standards. On April 11, 2022, the district government announced the "Expropriation Decision", which was later confirmed as illegal by the court. On August 12, 2024, the district government issued the "Expropriation Compensation Decision" to her: the property exchange compensation amounted to 2,256,766 yuan (300 square meters of residential housing plus 40 square meters of commercial housing), and the monetary compensation amounted to 2,699,766 yuan (for the additional 40 square meters of commercial housing). Li Xiaoqin believes that the decision is based on illegal grounds and violates legal procedures, so she entrusted Beijing Henglu Law Firm to handle the case for her.文品良The lawyer filed a lawsuit and requested the revocation of the decision.

The focus of the controversy:First, whether the "Expropriation Decision" that has been confirmed to be illegal can be used as the basis for the compensation decision; Second, whether the evaluation process is transparent - the plaintiff has not seen the recommendation notice, recommendation form and evaluation report, and whether the right to review is guaranteed; Third, whether it is legal and fair for the compensation and resettlement plan to exclude statutory compensation methods and outdated standards.

Our position and that of the other party are as follows:Li Xiaoqin argued that the "Expropriation Compensation Decision" was based on illegal grounds and violated legal procedures, and requested its revocation. The district government argued that although the "Expropriation Decision" was confirmed to be illegal, it was still valid as it had not been revoked, and the evaluation process included signature procedures and the compensation amount was calculated according to the plan.

Attorney's Strategy and Legal Opinion:Attorney Wen Pinliang put forward four points: The "Expropriation Decision" on which the compensation decision is based has been confirmed as illegal by the effective judgment, and should not be used as a basis; the evaluation process is not transparent, and the plaintiff did not receive the evaluation report and lost the right to review; the legal order of formulating and announcing the compensation and resettlement plan is misplaced, depriving the right to seek remedy for objections; the plan excludes the methods stipulated in Article 48 of the Land Management Law, but evaluates the decorative accessories without evaluating the main building and predetermines the standards in advance, citing the outdated measures of 2017, which violates the principle that the original living standard should not be reduced.

The court's reasoning and the outcome of the case:The court determined that the evaluation company's "Inventory and Settlement Form" was only a draft, had not been served to the plaintiff or confirmed by him, and could not be used as the basis for the compensation decision. The defendant's decision based on this was considered to lack sufficient evidence. The significant flaws in the evaluation process resulted in the decision lacking factual basis and failing to protect the plaintiff's right to information and right to review. According to Article 70(1) of the Administrative Procedure Law, the court ruled to revoke the "Collective Land Expropriation Compensation and Resettlement Decision" and ordered the defendant to make a new decision within 60 days from the effective date of the judgment. The compensation recalculation thus gained a procedural opportunity.

This case is handled by Beijing Henglu Law Firm.文品良Attorney (Practice Certificate No.: 11101201910111365, subject to the certificate issued by the judicial administrative organ) acting as an agent.

III. Frequently Asked Questions

Q1: Is the compensation for the shantytown renovation calculated based on the area or the household registration?

Both approaches exist, and the key lies in the determination rules of the local compensation plan: for houses on state-owned land, the core consideration is the value of the house, which is calculated by multiplying the market assessment price by the determined area. The household registration mainly affects the eligibility for resettlement and the assistance projects; for housing renovation on collective land, it is usually based on the principle of "one household, one dwelling", combined with the area of the homestead and the determined resettlement area and population assistance for family members. Regardless of the model, the results of the evaluation and determination should be notified in writing and accompanied by review channels. If there are any objections, they should be raised in writing and documented during the announcement period.

Q2: Is it more cost-effective to choose monetary compensation or property rights exchange?

Depending on the comparison between the assessment price and the value of the relocation housing: If the assessment price is not lower than the market price of similar commercial housing in the surrounding area, monetary compensation is flexible and convenient for rapid resettlement; if the location, quality, and certification prospects of the relocation housing are good, the preservation value of the property exchange is strong. The acquiring party may be required to provide a complete estimate of the two options - the total amount of monetary compensation, temporary resettlement fees, and relocation fees, along with the area of the relocation housing, settlement of the price difference, and delivery time - before making a choice. The right of choice belongs to the acquiree according to law, and the compensation level shall not be reduced for any reason due to different choices.

Q3: How long does it usually take for the compensation money to be deposited into the account?

According to the principle of "compensation first, relocation later", compensation should be implemented before relocation: those who sign agreements shall pay according to the agreed time. In practice, it is often agreed that the payment shall be made within 30 to 90 days after signing the agreement. If the payment is overdue, the party concerned may demand performance and sue for enforcement; if the expropriated person does not apply for reconsideration or sue after the compensation decision is made, the compensation shall be paid according to the time limit specified in the decision. If the house has been demolished but the compensation has not been implemented, the expropriated person may apply to the expropriation department to perform the compensation duties, and if necessary, file a lawsuit to enforce the duties, which will proceed in parallel with the national compensation procedures.

Q4: If I haven't received the assessment report, is the compensation decision still valid?

There are major flaws. If the inventory and settlement table issued by the appraisal agency is only a draft and has not been served to the person subject to expropriation or confirmed by them, it cannot be used as the basis for the compensation decision. The decision made based on this may be revoked due to the lack of main evidence. In the aforementioned case, the court revoked the compensation decision and ordered the re-issuance within 60 days because the appraisal report was not served and the right to review was lost. Note: The application for review should generally be submitted within 10 days from the date of receipt of the appraisal report, and a review can be requested within 60 days after receiving the compensation decision, and a lawsuit can be filed within six months. These three time limits should be coordinated with each other.

Q5: What standards are used to compensate for old houses and unregistered houses?

Unregistered houses formed by historical factors do not necessarily mean zero compensation: For those unregistered due to historical reasons, their legality can be determined based on evidence such as the construction time, approval procedures, actual residence, and aerial photography maps, and corresponding compensation will be provided in accordance with local policies. Only for overdue temporary buildings or unlawful structures that should be demolished according to law may there be no compensation. For cases where "one-size-fits-all" unregistered treatment is applied and the standards are obviously too low, applicants can request information disclosure to verify the basis for the determination and claim fair compensation through administrative reconsideration and litigation. The court's rejection of the outdated standards in the previous case shows that there is still room for reassessment of old houses in accordance with the law.

IV. Advice on Protecting Rights and Interests

  • When receiving the compensation plan, first check the three bottom lines: whether the compensation methods are complete (resettlement of residential land, resettlement housing, and monetary compensation), whether the standards refer to the surrounding market prices, and whether the channels for evaluation review are specified.
  • Participate in the evaluation of the institutions selected by the agency and retain the voting and recommendation records; the evaluation report must be signed for receipt in person, and the 10-day review period starts from the date of receipt.
  • The decoration of the house, the attached items, and the losses from suspension of production and business operations shall be registered and photographed one by one, and the list shall be checked on the spot when the appraisal is conducted, so as to prevent omissions.
  • The time limits for reconsideration and litigation specified in the compensation decision shall be registered on a daily basis. The reconsideration shall be completed within 60 days, and the litigation shall be carried out in a reverse order within 6 months. No blank agreements shall be signed, and no original documents shall be submitted.
  • When the compensation cannot be agreed upon, first apply for information disclosure to verify the project and funds, and then choose the path of reconsideration or litigation based on the evidence to avoid passive delay.

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