Legal information

Article introduction: Merchants often consult us! How should compensation for shop demolition be calculated? Are there any specific compensation standards? Today we talk about this topic.

First, how many categories are there for shops and front houses? What are the reference compensation standards?

1. If the certificates are complete but the real estate certificate of the shop has not been obtained, compensation shall be based on the price of the front house.

2. For rental houses without real estate certificates and land certificates, or houses built on leased land, please refer to the compensation for suspension of production and business.

3. The shop is a completely leased house and cannot be compensated as a shop.

Second, compensation methods for shops include monetary compensation and property rights replacement.

1. Monetary compensation is based on different legal basis, and a professional evaluation agency conducts professional valuation of the demolished houses to generate a well-founded and multi-component compensation amount.

2. Yingting believes that there are three statutory assessment bases: Yingting Demolition Group believes that the market assessment price refers to the real estate market price of the demolished house. It is an activity that is carried out by a professional valuation agency that meets the regulations, based on the valuation purpose, following the valuation principles, and selecting appropriate valuation methods in accordance with the valuation procedures, and based on a comprehensive analysis of the factors that affect the real estate price, to estimate and determine the objective and reasonable price or value of the real estate at the valuation time point. The average transaction price of commercial housing refers to the average transaction price of ordinary residential commercial housing of the same type in the same area, which is regularly summarized, measured and published by relevant departments every quarter. Replacement price refers to the normal price of a new building with the same functional utility as the object of valuation determined by the valuation agency using the building materials and construction technology at the time of valuation, based on the price level at the time of valuation.

3. Property rights replacement is also called property rights exchange. There are two replacement methods based on different evaluation methods.

Value-standard property rights replacement refers to the evaluation of the property rights value of the demolished person's house in accordance with legal procedures, and then the property rights of the newly built house are replaced with equivalent value. Area-standard property rights exchange refers to the exchange of houses with different property rights based on the building area and within the area that should be resettled without settling the price difference. There are two forms of property rights replacement: off-site resettlement means that because the developer's project does not involve residential buildings or due to the floor area ratio of the land, relocation cannot be carried out. The only choice is to build new resettlement houses on other land parcels, and then through the increase or decrease of property rights, the property rights can be exchanged with equivalent value. Return resettlement means that the developer's demolition and reconstruction project can complete the return resettlement, and the return resettlement can be completed through the proportion of property rights replacement.

Third, shop demolition compensation includes losses from production and business suspension, etc.

1. Incentive fees incurred based on the demolition policy, including expedited relocation fees, demolition incentive fees, etc. However, only after seeing the demolition agreement can we determine whether the demolition is legal and what compensation we should seek.

2. Preliminary costs for relocation and downtime costs incurred during the relocation process, costs for debugging and repairing machinery and equipment, disassembly, packaging and transportation of materials, compensation for laid-off employees, etc.

3. If Ying Ting proposes to demolish non-residential buildings, resulting in the suspension of production and business, he should also be compensated. If the demolition of houses results in the suspension of production or business, within the specified transition period, a one-time minimum wage compensation will be provided according to the number of registered workers involved, or the actual number of employees registered in the industrial and commercial business license. Among them, if the transition period is within 18 months, 6 months of compensation will be given; if the transition period is between 18 months and less than 24 months, 10 months of compensation will be given; if the transition period is extended due to the responsibility of the demolisher, 1 month of compensation will be given for each overdue month starting from 1 month. If the demolition of the house results in a suspension of rent, 50% of the rent specified in the "House Rental Certificate" issued by the housing management department will be compensated until the house is moved back.

Yingting reminds you:

Many parties will also apply for administrative reconsideration and initiate administrative litigation to protect their rights and interests. But some people are afraid of spending money, or think that the matter is simple and can be done by themselves, so they spend some money to ask an acquaintance to write a reconsideration application (complaint), or simply write it themselves. Then go through the legal process of administrative review or administrative litigation. Since legal procedures are a very professional job, it cannot be done by non-legal professionals, civil and criminal lawyers who do not understand administrative cases and land acquisition and demolition, or lawyers who have few successful cases of land acquisition and demolition. Demolition is not a trivial matter, so don’t be greedy for small gains and suffer big losses. A procedure can only be carried out once, and the lawsuit cannot be repeated. Please treat your case with caution. If it is a corporate case, seek legal advice from a corporate demolition and vacation lawyer who has extensive experience in handling cases.