Legal information

One house during land acquisition and demolition is quite special because it is not only a house but also a shop. In life, we often see people who convert their houses into shops. The most common ones are shops and B&Bs. Is it true that no compensation will be given if this kind of house is demolished? If so, how should I make up for it?

First of all, as long as legal houses are demolished, compensation will be provided no matter what purpose they are used for. Moreover, our country's laws stipulate that for those whose property rights are residential within the scope of demolition, but who have obtained a business license for commercial use in accordance with the law, various localities can provide appropriate compensation based on their actual business conditions, operating years, tax payments and other actual conditions. Therefore, if your house renovation is deemed illegal by the demolition party and no compensation is given, you must find a way to protect your legal rights and interests in a timely manner.

Secondly, as for the compensation content of expropriated houses, our country’s laws have clear regulations. The compensation provided to the expropriated persons by the municipal and county-level people's governments that make the decision on house expropriation includes:

(1) Compensation for the value of the expropriated house;

(2) Compensation for relocation and temporary resettlement caused by house expropriation;

(3) Compensation for losses caused by suspension of production and business due to house expropriation.

The people's governments at the city and county levels shall formulate subsidies and reward measures to provide subsidies and rewards to the expropriated persons.

So how do you make up for the housing that is required for housing reform in practice? Generally speaking, in order for a house to be recognized as a residential reform without compensation, two conditions need to be met: first, a business license is obtained, and second, the house is objectively used for office or production operations. However, it is not acceptable to simply use the house for office or production operations without obtaining a business license. Or, although a business license has been obtained, no business activities occurred objectively during the relocation. Such situations generally cannot be regarded as non-residence reform.

When compensating this type of house in actual operation, the compensation standard will not simply be determined by the nature of the house recorded on the house ownership certificate. Instead, the actual situation of the expropriated house will be comprehensively measured to determine whether to compensate for the loss caused by the suspension of production and business. But in fact, compensation is different across the country. Some are compensated based on actual use, some are determined based on the average of the estimated compensation amount for residential houses and the estimated amount of demolition compensation for non-residential houses, and some are based on the compensation standards for commercial houses. For example, in Shanghai’s “renovation from residential to non-residential housing” program, in principle, compensation is based on the assessed value of residential housing, and additional subsidies are provided based on the number of industrial and commercial business licenses registered in the housing.

Finally, it is recommended that the demolished people should not bear it when they encounter problems. Only by seeking help in time can they turn the tide. If you have any questions about the demolition compensation for non-house renovation or other questions about land acquisition and demolition, you can come to us for consultation.