[Direct answer]"Compensation first, relocation later" is the statutory basic principle of housing and land expropriation: the expropriating party must first implement compensation, that is, sign a compensation agreement or make a compensation decision, and ensure that the compensation funds are fully in place, before requiring the expropriated person to relocate and surrender the housing and land. Any unit or individual shall not use violence, threats, or illegal methods such as cutting off water and electricity to force relocation. The direct basis for this is Article 27 of the "Regulations on Housing Expropriation and Compensation on State-Owned Land", and the expropriation of collective land also requires compensation first. Failure to sign an agreement and demolition before compensation is illegal. The expropriated person may sue to confirm the illegality within 6 months from the date they learn of the demolition, and claim compensation on this basis. The path to protect rights can first be through legal procedures.Legal services for land expropriation and demolition, and administrative litigationI understand.

1. Problem background and typical scenarios

The compensation has not been finalized yet, but the house was demolished first; the compensation funds have not been received yet, but the homeowner was required to vacate the property within a specified timeframe; negotiations were still ongoing during the day, but the house was bulldozed in the middle of the night—the "demolish first, compensate later" and "use demolition to force signing" practices are the most pressing concerns raised by parties involved in land expropriation and demolition. Typical scenarios include: in the process of housing expropriation on state-owned land, municipal and county governments organize demolitions before making compensation decisions; in collective land expropriation, compensation funds are not fully paid and resettlement arrangements are not implemented before requiring relocation; in some cases, developers use coercive tactics, conduct illegal demolitions, or even force demolitions at night to create a fait accompli, forcing the homeowners to compromise on compensation. The principle of "compensation before relocation" was established precisely to curb such practices: it makes compensation a prerequisite for relocation, preserves negotiation space and remedial opportunities for homeowners, and serves as a yardstick for judging the legality of demolitions.

II. Key points of contention

  • The controversy over the order of the procedures: Whether the demolition carried out when the compensation agreement has not been signed, the compensation decision has not been made, or the compensation funds have not been fully paid is legal, which is the core controversy of the lawsuit to confirm the illegality and directly determines the status of the subsequent compensation negotiations.
  • Responsibility subject disputes: Forced demolitions are often carried out by entrusted organizations such as command headquarters, service centers, and management committees. Most of these units do not have the ability to independently bear legal responsibility. Who should bear the responsibility and who should be listed as the defendant directly affect the success or failure of the litigation.
  • The connection between relief pathways: It is necessary to determine how to combine lawsuits challenging illegal actions, lawsuits seeking compensation for breach of duty, and administrative compensation lawsuits. Should we first confirm the illegality or claim compensation simultaneously? The evidentiary requirements and procedural benefits of different pathways vary greatly.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers observed in handling land expropriation and demolition cases that most illegal demolitions involve the common feature of "demolition without compensation". Taking a case of collective land expropriation and demolition as an example: The house on the homestead of Mr. Liu and Mrs. Zhou was included in the expropriation scope due to urban construction. As the compensation standard could not be agreed upon, they refused to sign the agreement. The service center of a new district organized personnel to forcibly demolish the house without reaching a compensation agreement or applying for compulsory enforcement by the people's court according to law. After accepting the entrustment, Henglue Lawyers carried out legal protection along two lines: First, they strictly adhered to the requirement that expropriation should follow the principle of compensation before relocation, pointing out that it was obviously illegal to demolish without reaching an agreement or going through the statutory compulsory enforcement procedure. Second, according to Article 20, Paragraph 1 of the Interpretation of the Supreme People's Court on the Application of the Administrative Litigation Law of the People's Republic of China, the service center that carried out the demolition was a government-established public institution without the ability to independently bear legal responsibility, and the consequences of its actions should be borne by the municipal government that established it, thus identifying the appropriate defendant. After going through the first-instance and remand procedures, the court finally ruled that the city government's forced demolition was illegal, and the second-instance court upheld the original judgment, laying the foundation for the client to apply for compensation subsequently. After confirming the illegality, the implementation and enforcement of compensation can also be combined with other legal procedures.Creditor-debtor relations and enforcement case servicesCoordinated evaluation.

IV. Practical suggestions and legal basis

At the legal basis level: Article 27 of the "Regulations on the Acquisition and Compensation of Houses on State-Owned Land" (implemented on January 21, 2011) clearly stipulates that the implementation of house acquisition shall be preceded by compensation and followed by relocation, and it is prohibited to force relocation by violence, threats, or cutting off water and electricity supplies, or blocking road traffic. Article 28 stipulates that if the person subject to the acquisition does not appeal, file a lawsuit, or relocate within the legal time limit, the municipal or county government that made the acquisition decision shall apply to the people's court for enforcement according to law. Article 48 of the "Land Administration Law of the People's Republic of China" (amended in 2019 and implemented on January 1, 2020) establishes the principle that fair and reasonable compensation shall be provided for land acquisition. Article 13 of the "Administrative Enforcement Law of the People's Republic of China" (implemented on January 1, 2012) stipulates that if there are no provisions in the law for administrative enforcement by administrative organs, the administrative organ that made the administrative decision shall apply to the people's court for enforcement. Article 26 Paragraph 5 of the "Administrative Litigation Law of the People's Republic of China" (amended in 2017) stipulates that the administrative acts made by organizations entrusted by the administrative organ shall be deemed as acts of the entrusting administrative organ. At the practical advice level: When the acquisition project is launched, it is necessary to preserve the house ownership certificates, land use certificates, appraisal reports, and negotiation records as soon as possible; report the case to the police, take photos and videos, and fix the scene and items in the house when encountering forced demolition; and not sign agreements hastily with blank clauses or compensation that is obviously too low. If there are disputes over the value and ownership of the house, the parties concerned may seek help from the relevant departments.Real estate sales and construction project servicesEvaluation.

5. Henglu Law Firm's Reminder

Compensation before relocation is not just a slogan, but a litmus test for the legality of expropriation: if the agreement has not been signed, the compensation decision has not been made, or the compensation funds have not been provided, any demolition is suspected to be illegal. After the house is forcibly demolished, confirming the illegality of the demolition is a prerequisite for claiming administrative compensation. Before suing, it is necessary to fix the evidence of the implementing subject, the demolition time, and the on-site losses as much as possible. The above-mentioned case of confirming the illegality of the forced demolition was handled by Beijing Henglu Law Firm.Wu JianiThe lawyer (practice certificate number: 11101202011245064, subject to the certificate issued by the judicial administrative organ) acted as the agent, and after more than three years of procedures, it was finally confirmed that the city government's forced demolition was illegal. If you are currently facing similar difficulties, it is recommended that you seek legal help as soon as possible.Beijing Henglu Law FirmConsult and evaluate the timing of prosecution and evidence plans to avoid missing legal deadlines.

Q1: Is there a legal basis for compensating people first and then relocating them?

Yes. Regarding the expropriation of houses on state-owned land, Article 27 of the "Regulations on the Expropriation and Compensation of Houses on State-Owned Land" stipulates that the implementation of house expropriation shall first provide compensation and then proceed with relocation. No unit or individual may use violence, threats, or illegal methods such as cutting off water and electricity supplies to force the expropriated persons to relocate. Regarding the expropriation of collective land, Article 48 of the "Land Administration Law of the People's Republic of China" requires that fair and reasonable compensation be provided for land expropriation, and the "Implementing Regulations of the Land Administration Law of the People's Republic of China" (amended in 2021) further specify the requirements for the implementation of compensation fees. The principle of compensation first means that before the signing of the agreement or the issuance of the compensation decision, and before the full payment of the compensation funds, the expropriator has no right to require the expropriated persons to relocate, let alone demolish their houses on their own.

Q2: If the compensation agreement isn't signed and the house is forcibly demolished, is that illegal?

It is usually illegal. There is only one legal path for forced demolition: after the compensation issue is resolved in accordance with the law, the government that made the expropriation decision shall apply to the people's court for compulsory enforcement. Article 13 of the Administrative Enforcement Law of the People's Republic of China stipulates that if there are no provisions in the law for the administrative organ to enforce by force, it shall apply to the people's court for compulsory enforcement, while the current law does not grant the administrative organ the right to directly demolish legal houses by force. If no agreement has been signed, no compensation decision has been made, and no application for court enforcement has been made, the demolition action will usually be confirmed as illegal. The expropriated persons should pay attention to filing a lawsuit within 6 months from the date they know about the demolition action (Article 46 of the Administrative Procedure Law of the People's Republic of China), requesting to confirm that the forced demolition is illegal.

Q3: If the compensation money hasn't arrived yet, but I'm being asked to vacate the premises and hand over the property, what should I do?

You can temporarily delay the handover of the house and raise objections in writing. The requirement that compensation be provided before relocation means that compensation must be implemented before relocation. If the compensation funds are not fully in place or the resettlement housing is not specified, the expropriated persons have the right to refuse to relocate within the time limit and may submit written reasons to the expropriation department and keep the delivery certificates; if the expropriation side implements water and electricity cuts or harassment to force relocation, they can file complaints and reports with relevant departments and preserve evidence; if the house is illegally demolished during this period, they should promptly file a lawsuit to confirm the illegality. It is important not to use oral delay to replace written claims, as written correspondence records are often key evidence to prove that the expropriation side's procedures are illegal in subsequent litigation.

Q4: After the house is forcibly demolished, should I sue the district government or the municipal government?

The key lies in the nature of the implementing entities and the entrustment relationship. According to Article 26 Paragraph 5 of the Administrative Procedure Law of the People's Republic of China, the acts implemented by entrusted organizations shall be sued by the entrusting administrative organs; according to Article 20 Paragraph 1 of the Interpretation of the Supreme People's Court on the Application of the Administrative Procedure Law of the People's Republic of China, the acts implemented by institutions established by the government but not having the ability to independently bear legal liability shall be sued by the government that established them. In practice, we should collect the expropriation decisions, entrustment documents, on-site videos, news reports, etc. to identify the demolition implementing units and the underlying entrustment relationships; if it is difficult to distinguish them at the moment, we can sue the relevant governments together, and the court will review and determine the appropriate defendants.

Q5: After confirming that the forced demolition is illegal, how can I get compensation?

Confirming the violation is a prerequisite for applying for administrative compensation. You can first submit a compensation application to the compensation-liable organ. If the compensation is not granted within the time limit or if you disagree with the amount, you can then initiate an administrative compensation lawsuit. The scope of compensation generally includes direct losses such as housing losses (determined by referring to the market price of similar houses in the surrounding area or the compensation standards for expropriation), losses of items in the house, and relocation and temporary resettlement expenses. When claiming compensation, you should provide evidence such as ownership certificates, purchase receipts, and on-site photos. If the house has been included in the scope of expropriation, you can also claim compensation and a seamless connection with the expropriation compensation process. If an agreement on the amount cannot be reached, you can apply for an appraisal or have the court determine the amount. If necessary, you should also prepare for enforcement at the same time.

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 Wu Jiani·Beijing Henglue Law Firm