[Direct answer]Lawyers cannot directly "increase" the amount of compensation, but they can challenge the basis of low compensation through a legality review: for expropriation compensation decisions made based on evaluation data that have not been confirmed by delivery, or compensation plans that violate procedures, the expropriated person may, in accordance with Article 70 of the Administrative Litigation Law of the People's Republic of China (amended on June 27, 2017), request the court to revoke the decision and order a new one. In a shantytown renovation case handled by Henglue Law Firm, the court revoked the compensation decision on the grounds of insufficient main evidence and ordered a new decision within 60 days. The process of making a new decision provides room for renegotiation. For disputes over shantytown renovation compensation, it is advisable to first understand the relevant laws and regulations.Legal services for land expropriation and demolition, and administrative litigation.

1. Problem background and typical scenarios

The transformation of shantytowns involves a wide range of aspects and strong policy implications. Compensation disputes typically erupt in several stages: the selection of appraisal institutions and the opaque process of household surveys; the appraisal reports or inventory forms not being delivered or adopted without the consent of the expropriated parties; the exclusion of legal methods such as rearranging residential plots for housing construction from the compensation and resettlement plans, or the application of outdated standards leading to unfair compensation; the practice of demolishing first and negotiating later, which deprives the expropriated parties of bargaining leverage; and the compensation being made based on flawed procedures even after the expropriation decision itself is confirmed as illegal. What the expropriated parties care most about are: how long they can delay signing the agreement, whether there's still a chance to appeal after the compensation decision is finalized, and what lawyers can actually change in this situation.

II. Key points of contention

  • The legality of the compensation decision: Whether the assessment process guarantees the right to information and the right to review, whether the assessment data can be used as evidence without being confirmed, and whether the decision letter can be revoked directly.
  • Fairness of the compensation plan: According to Article 48 of the Land Administration Law of the People's Republic of China (amended on August 26, 2019), the expropriation should 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. If the legal compensation methods or the compensation standards are abnormally low, the parties concerned can claim that the compensation plan is unfair in substance.
  • Timing of relief: the statute of limitations, the choice of review and litigation in succession, and whether normative documents can be reviewed together in litigation. Missing the deadline will result in the loss of the opportunity to reverse the situation.

III. Professional analysis by Henglue Law Firm

Take the case of the demolition and compensation for shantytowns represented by Henglue Law Firm as an example. Li Xiaoqin, a villager of Chenguang Village in XX District of A City, Shaanxi Province, had her No. 50 courtyard included in the shantytown renovation project. Due to the lack of transparency in the procedures and unreasonable compensation standards, Li Xiaoqin failed to sign a compensation agreement. As early as April 11, 2022, the district government announced the "Seizure Decision", which was later confirmed as illegal by the Intermediate People's Court and upheld by the Higher People's Court. On August 12, 2024, the district government issued the "Seizure and Compensation Decision" to Li Xiaoqin, offering two options: property exchange (with a compensation amount of 2,256,766 yuan, including a 300-square-meter residential unit and a 40-square-meter commercial relocation unit) or monetary compensation (with a compensation amount of 2,699,766 yuan, plus an additional 40-square-meter commercial relocation unit). Li Xiaoqin argued that the decision was based on illegal grounds and violated procedural norms, and she entrusted Attorney Wen Pinliang from Beijing Henglue Law Firm to file a lawsuit requesting the revocation of the decision.

In the lawsuit, the two parties confronted each other. The district government argued that although the "Expropriation Decision" was confirmed to be illegal, it was still valid as it had not been revoked. The evaluation process included records of posting recommendation notices, distributing recommendation forms, and conducting on-site inspections and signature collection. The compensation amount was calculated based on the plan, and the evidence was sufficient. The lawyer put forward four legal opinions: the "Expropriation Decision" that had been confirmed to be illegal by a valid judgment should not be used as the basis for the compensation decision; the plaintiff had never seen the recommendation notices, recommendation forms, and evaluation reports, and had lost the right to review the evaluation process and results; the legal order of formulating and publicizing the compensation and resettlement plan and announcing the land expropriation was misplaced, depriving the plaintiff of the right to appeal; the compensation plan excluded the method of rearranging residential plots for house construction as required by Article 48 of the Land Management Law, and the evaluation standards for decorative fixtures and main buildings were inconsistent and referenced outdated 2017 measures, violating the principle of not reducing the original living standard.

After trial, the court held that the key issue is that the company's "Inventory and Settlement Table" was only a draft, and it was not served to the plaintiff or confirmed by him, so it cannot be used as the basis for the compensation decision. The defendant's decision based on this lacks sufficient evidence, and the major flaws in the evaluation process failed to protect the plaintiff's right to information and review. Since the value of the house still needs to be evaluated by the administrative organ and there is discretionary space, the court should not directly determine the specific compensation. Finally, in accordance with Article 70, Paragraph 1 of the "Administrative Litigation Law of the People's Republic of China" (amended on June 27, 2017), the court ruled to revoke the "Collective Land Expropriation Compensation and Resettlement Decision" and ordered the district government to make a new expropriation compensation and resettlement decision within 60 days from the date the judgment takes effect.

IV. Practical suggestions and legal basis

At the legal basis level: Article 48 of the Land Administration Law of the People's Republic of China (amended on August 26, 2019) stipulates that land expropriation shall be subject to fair and reasonable compensation, ensuring that the original living standards are not reduced and long-term livelihoods are guaranteed. The compensation methods include rearranging residential plots for housing construction, providing resettlement housing or monetary compensation, etc., and following the principle of compensation first and relocation later; Article 70 of the Administrative Procedure Law of the People's Republic of China (amended on June 27, 2017) stipulates that if an administrative act lacks main evidence or violates legal procedures, the court shall rule to revoke or partially revoke it, and may order the administrative organ to make a new administrative act; Article 46 stipulates that the time limit for direct litigation is 6 months from the date of knowing the administrative act. Practical suggestions: When receiving the compensation decision, first check whether the evaluation data has been confirmed by oneself and whether the scheme excludes the statutory compensation methods; sue within the time limit and apply for retrieving the full process materials of the evaluation; in the litigation, raise both procedural and substantive issues. For issues involving housing ownership and evaluation techniques, they can be combined with each other.Legal services for real estate transactions and construction projectsVerify the ownership chain; for historical ownership disputes, you can also refer to the relevant materials.Special services and legal services for other cases.

5. Henglu Law Firm's Reminder

The essence of the game of compensation for shantytown renovation is a game of procedures and evidence: the evaluation not being delivered for confirmation, the exclusion of statutory methods in the plan, and outdated standards are all points that can be overturned according to law. This is precisely where lawyers are most likely to change the outcome after their involvement. Not signing an agreement does not mean delaying to one's advantage. Once the six-month statute of limitations for suing expires after the compensation decision is made, the chance of winning the lawsuit will be lost. It is advisable to sue as soon as possible and apply for evidence retrieval. This case is handled by Beijing Henglu Law Firm.文品良The lawyer (practice license number: 11101201910111365, subject to the document issued by the judicial administrative organ) acts on behalf of the client. The court revoked the compensation decision and ordered the re-issuance within 60 days. If you are currently facing disputes over compensation in the shantytown renovation project, it is recommended that you consult a professional lawyer as soon as possible with the acquisition documents and evaluation materials. You can first contact us for advice.Beijing Henglu Law FirmMake an appointment for an evaluation.

Q1: If the compensation for the housing demolition and relocation is unreasonable, can I win the lawsuit?

It depends on whether the legal defects of the decision itself exist. According to Article 70 of the Administrative Litigation Law of the People's Republic of China (amended on June 27, 2017), if the compensation decision lacks sufficient evidence or violates legal procedures, the court shall order its revocation and may order it to be redone; if the evaluation data have not been delivered for confirmation by the expropriated person, the evaluation process deprives them of the right to be informed and the right to review, or the compensation plan excludes legal compensation methods, these are all common grounds for revocation in practice. In the shantytown transformation case handled by Henglue Law Firm, the court revoked the compensation decision on the grounds that the evaluation form was only a draft and had not been delivered for confirmation, and the main evidence was insufficient. It is recommended that lawyers first review the decision and evaluation materials to determine the likelihood of the existence of defects, and then decide on the litigation strategy.

Q2: I haven't received the evaluation report. Is the compensation decision still valid?

There are major flaws. If the assessment agency's accounting form is only a draft and has not been delivered to the person subject to expropriation or confirmed by them, it cannot be used as the basis for the compensation decision. A decision made on this basis may be revoked by the court due to insufficient main evidence. According to the law, the assessment procedure should guarantee the right of the person subject to expropriation to be informed and to review the assessment: if they have objections to the assessment results, they can apply for a review of the assessment; if they still have objections to the review results, they can apply for an appraisal by the expert committee. During the period when they have not received the report, they should pay attention to preserving objective evidence of non-receipt and non-witnessing; after receiving the decision letter, they should sue as soon as possible within the 6-month statute of limitations and let the court retrieve the materials of the entire assessment process to review the procedural compliance.

Q3: If you disagree with the compensation decision, should you file for reconsideration first or initiate litigation first?

Both paths can be chosen. For those who directly file a lawsuit, according to Article 46 of the Administrative Litigation Law of the People's Republic of China (amended on June 27, 2017), the lawsuit should be filed within 6 months from the date they learn of the compensation decision; for those who choose to go through the reconsideration process, if they are still not satisfied with the reconsideration decision, they can still file a lawsuit, but the overall timeframe will be longer. For ordinary housing demolition projects, there are no mandatory pre-reconsideration requirements, except for cases involving special subjects. After evaluating the evidence of the case, lawyers usually suggest: if the evidence materials are complete and the procedural flaws are clear, directly file a lawsuit to seize the time; if it is necessary to further fix the illegal facts through the reconsideration process, you can first go through the reconsideration process and then file a lawsuit. Specifically, you should arrange it in combination with the litigation time limit and the progress of the case to avoid wasting time on both sides.

Q4: How are the fees for demolition lawyers usually charged?

In cases involving expropriation compensation, attorneys' fees are typically charged on a per-case or per-object basis, which is related to the area of the house involved, the amount of compensation, and the procedural stages (reconsideration, first-instance trial, second-instance trial). The fees can be negotiated as a fixed amount or paid in stages upon entrustment. Two points need to be noted: First, before signing the contract, it is necessary to require the attorney to list in writing the services to be provided, such as whether the application for information disclosure, litigation, evidence collection, court hearings, etc. are included. Second, be vigilant against quotes that claim to "guarantee an increase in the compensation ratio" and charge based on inflated differences. Legitimate law firms will not promise specific outcomes. After entrustment, the original documents such as the expropriation decision, compensation decision, and appraisal materials should be handed over to the attorney for review, and the fees and refund provisions should be included in the contract.

Q5: After the compensation decision is revoked, will the compensation automatically be increased?

It won't automatically increase, but it will open up the possibility for renegotiation. After the court rules to revoke the compensation decision and orders the administrative organ to make a new decision within a specified timeframe, the administrative organ must reorganize the evaluation and procedures. The new decision-making process is bound by the original judgment, and the administrative organ cannot make decisions based on unconfirmed evaluation data anymore. For the land expropriated persons, this is precisely the window period for seeking reasonable compensation: they can raise objections to the evaluation results and claim statutory compensation methods and current standards during the re-evaluation process, and simultaneously prepare negotiation proposals. If the new decision-making process still contains similar illegal circumstances, they can sue again. Whether the compensation can be substantially increased depends on the claims and evidence organization of the land expropriated persons during the re-evaluation process.

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