[Direct answer]In the Beijing area, compensation will not be denied simply because the buildings lack permits. The key factors to consider include the construction time of the buildings, whether the construction has undergone approval or registration procedures, whether the land is legally used for agricultural facilities, and whether the lack of permits is due to historical or management reasons. According to Article 48 of the Land Administration Law of the People's Republic of China (amended in 2019 and effective from January 1, 2020), land expropriation should be accompanied by fair and reasonable compensation for structures and crops on the land. For farming buildings that have existed historically and are not registered due to no fault of the parties involved, administrative authorities cannot simply refuse compensation or directly determine them as illegal structures and demolish them. Instead, they should investigate, determine the legal status of the buildings, and handle the matter in accordance with the law. The portion of the buildings that constitutes legal property should be included in the compensation scope.

I. Problem Background and Typical Scenarios

The structures of farms are complex: pens, guardhouses, feed rooms, disinfection rooms, and office and living quarters are often mixed together. The land used is mostly for facility agriculture or collective land. In the past, to encourage farming, these facilities often only required the consent of the village collective or registration with the township authorities. However, years later, when faced with land expropriation or environmental protection measures, a simple designation as "unlicensed buildings" could result in zero compensation. Common scenarios include: pens built over a decade being deemed illegal structures and ordered to be demolished within a specified timeframe; compensation plans only covering land but not buildings; and relocation fees, the disposal of livestock and poultry, and losses from production and business suspensions being excluded from the compensation scope.

II. Key points of contention

First, does the lack of a building permit equal illegal construction? The identification of illegal buildings requires that the competent authorities investigate, identify, and make a processing decision in accordance with legal procedures. It cannot substitute the identification process of illegal construction in the name of expropriation or rectification, and it cannot directly presume that a building is illegal just because it lacks a building permit. Second, proof of the construction time of the building. Aerial imagery, land contracting contracts, village collective certificates, water and electricity account registration records, and tax payment certificates can all be used to prove the age of the building, which in turn affects whether it is protected by the policies of that time. Third, the composition of compensation items. In addition to the replacement value of the house and compensation for attached structures on the land, operational losses such as equipment relocation fees, livestock and poultry disposal fees, and losses from production and business suspension should generally be taken into account. Fourth, whether the expropriation procedure is legal. Whether the compensation plan and the expropriation announcement are made and announced in accordance with the law directly determines whether the compensation standards can be challenged and adjusted.

III. Professional analysis by Henglue Law Firm

The first step in determining whether unlicensed housing can receive compensation is often not to directly discuss money, but to verify whether the scope of expropriation and the expropriation procedures are legal. In a case handled by Henglue Law Firm, villager Liu * legally owned a house and residential land in Shuguang Village, XX Town, H City. However, the house was included in the scope of expropriation for the F to S high-speed railway project but was not provided with any resettlement compensation. To verify the legality of the expropriation, the lawyer submitted an application for government information disclosure to the H City People's Government on behalf of Liu * on September 23, 2025, requesting the disclosure of seven pieces of information, including the project approval and approval documents, land expropriation approval documents, pre-announcement of expropriation, social stability risk assessment reports, compensation and resettlement plans and announcements, proof of compensation funds being in place, and expropriation announcements. On October 29, 2025, the municipal government refused to provide any information on the grounds that the house had not been expropriated. The lawyer determined that this was an attempt to evade the obligation of disclosure by claiming that "the information did not exist". After the first review ordered a re-response, the re-response on January 28, 2026 still seriously deviated from the content of the application. Therefore, a second review was initiated. The lawyer pointed out the illegal points one by one: the pre-announcement and expropriation announcement did not contain essential elements such as the scope of expropriation, the current status of the land, the purpose of expropriation, compensation standards, and resettlement methods; the proof of compensation funds being in place did not match the content of the application and could not prove that the compensation funds were fully in place; the social stability risk assessment report should be prepared and preserved by county-level or higher people's governments, and the disclosure of the report by non-legal entities was unacceptable; and the compensation and resettlement plan announcement was not disclosed in accordance with the law. On April 14, 2026, the review authority determined that the respondent had failed to fulfill its statutory obligation to disclose government information and ordered a re-response and the provision of information that meets the requirements of the application. This case was handled by Beijing Henglue Law Firm.He NingningThe lawyer (practice license number: 11101202511925103, subject to the document issued by the judicial administrative organ) acts as the agent. For unlicensed farms, the lesson of this case is that they should first review the legality of the expropriation documents to understand them clearly, so as to have a basis for negotiating the compensation standards and the basis for the determination of compensation.

IV. Practical suggestions and legal basis

According to Articles 47 and 48 of the Land Administration Law of the People's Republic of China (amended in 2019 and implemented since January 1, 2020), the expropriation of land shall follow procedures such as pre-announcement, status quo investigation, social stability risk assessment, announcement, and signing of compensation agreements, and fair and reasonable compensation shall be provided for land, rural villagers' residences, and other structures on the land; Articles 26, 28, and 32 of the Implementing Regulations of the Land Administration Law of the People's Republic of China (amended in 2021 and implemented since September 1, 2021) specify the pre-announcement, announcement of compensation and resettlement plans, and proof of compensation funds being in place; Article 33 of the Regulations on Open Government Information of the People's Republic of China (amended in 2019 and implemented since May 15, 2019) stipulates that if the administrative organ cannot respond on the spot, it shall respond within 20 working days from the date of receipt of the application, and the maximum extension period shall not exceed 20 working days. Suggestions: First, immediately collect indirect evidence of the construction time, including early aerial photographs, contract agreements, village collective certificates, and water and electricity and tax payment records; Second, apply in writing to the expropriation implementation units and local governments for the disclosure of documents such as the land expropriation approval and compensation and resettlement plans; Third, after receiving the determination document on illegal construction, check the determination subject and procedures, and, if necessary, apply for review or litigation within the statutory time limit; Fourth, keep separate accounts for operating losses, and maintain equipment lists, inventory records, and financial statements; For issues involving land use and building nature determination, relevant evidence can be combined with the determination document to prove the legality of the construction.Administrative litigation over land expropriation and demolitionAndSpecialised legal servicesOverall assessment.

5. Henglu Law Firm's Advice

Unlicensed farms are most easily dismissed with two phrases: one is "no license means illegal construction", and the other is "no compensation without expropriation". The former ignores the administrative determination process, while the latter is often an excuse to evade information disclosure obligations. After receiving a determination of illegal construction, a notice of demolition within a specified time limit, or a response denying compensation, it is essential to verify the subject, procedure, and basis of the document and apply for a review or file a lawsuit within the statutory time limit. During compensation negotiations, do not easily sign blank inventory confirmation forms. When determining the scope of expropriation and land use type, it is necessary to verify by comparing the project approval documents with the current land use map. The losses from the suspension of production and business operations of the farms, the relocation of equipment, and the disposal of livestock and poultry are often overlooked compensation items and should be claimed separately.Beijing Henglue Law FirmTip: First, clarify the legality of the expropriation documents, then discuss the compensation amount. Only then will you have a basis for negotiation.

VI. Frequently Asked Questions

Q1: Can the houses of unlicensed farms really get compensation?

It does not mean that there will be no compensation if there is no certificate. If the building was built a long time ago, the land use belongs to legal agricultural facilities, or with the consent of the village collective, and the failure to obtain a certificate is not due to the party's fault, it should generally be included in the scope of compensation; on the contrary, if it is indeed an illegal land occupation and is dealt with according to law, the compensation may be limited to building materials and other items. The conclusion depends on the identification process and evidence. It is recommended to sort out the evidence first and then evaluate the scope of claims.

Q2: What evidence do I need to prepare to prove that the house is legal?

These include land contracting contracts or transfer agreements, consent from the village collective or township, filing materials, aerial photography and satellite images from previous years, records of water and electricity account opening and payment, business licenses and tax payment certificates, breeding records, construction and repair invoices for buildings, and on-site photos and videos. This evidence is used to prove the construction time and actual usage of the buildings, and is a core material for seeking compensation.

Q3: How much are the attorney's fees for cases like this?

The attorney's fees are usually negotiated comprehensively based on the subject matter of the case, its difficulty, and the administrative stage it is in. When multiple procedures such as information disclosure, administrative review, and administrative litigation are involved, the fees are generally quoted in stages. The litigation fees are calculated either per case or based on the amount of the dispute, and most administrative cases involve relatively low amounts. Before entrusting the attorney, it is necessary to clarify the scope of services, the division of stages, and the fee standards, and to include the compensation objectives in the communication records of the entrustment.

Q4: How long does it take from initiating the process to receiving compensation?

The response to information disclosure usually takes 20 working days, administrative reconsideration generally makes a decision within 60 days after acceptance, and the first-instance ordinary procedure of administrative litigation is generally concluded within six months; if it is resolved through consultation, the period can be significantly shortened. Overall, it usually takes several months to more than a year. Among them, the deadlines for reconsideration and litigation are statutory deadlines that cannot be missed, and advance planning is necessary.

Q5: What should I do first?

First, fix the evidence and verify the legality of the expropriation: on the one hand, collect materials on the construction time and operating conditions of the building; on the other hand, apply in writing for the disclosure of the land expropriation approval, the expropriation announcement, and the compensation and resettlement plan. At the same time, pay attention to keeping the originals of all the served documents and the receipt records. Based on this, determine whether it is necessary to immediately apply for a review or file a lawsuit to avoid missing the statutory deadlines.

The above Q&A is mainly based on judicial practices in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 He Ningning·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. In case of disputes, please consult a practicing lawyer in time.