Legal information

How should buildings on allocated land purchased from relevant departments be compensated for expropriation? In addition, how should the land certificate be renewed? Let’s learn about it through specific cases.

A company in Yichang, Hubei Province owns certain allocated land. In 2011, it purchased 32 acres of land through the State-owned Assets Supervision and Administration Commission, with more than 5,000 square meters of buildings on it. The company has been going through the transfer procedures after the purchase, and then the relevant departments also promised that there is no need to pay land transfer fees. In 2021, the relevant departments suddenly issued a time-limited demolition notice. It was forced to be demolished in June 2021. The business owner would like to ask the lawyer what compensation standard should be used for compensation during the expropriation process.

This type of case is quite common in our handling process. For various reasons, many companies have purchased bankrupt state-owned enterprise land, state-owned enterprise land, and state-owned enterprise factories from the State-owned Assets Supervision and Administration Commission. In addition, many are formed through investment and cooperation with state-owned enterprises. There are also some companies that are still using allocated land due to historical issues in the transfer process, lack of clear delivery, etc.

Be sure to note that if you still have allocated land in your hand, change it as soon as possible. Regarding the issue of how to compensate for allocated land, according to the "Regulations on Expropriation and Compensation of Houses on State-Owned Land", there is no mention of whether the land is allocated or transferred. There is no such provision in law, which means that the compensation for houses will not be affected. Regardless of whether the land is allocated, assigned, or transferred, as long as the land use rights are legal, compensation for house expropriation, losses from production and business suspension, excessive relocation, etc. will not be affected.

What affects the price of land resumption is the price. For example, if it is a simple land resumption, how should compensation be given? If the land is simply taken back, there should be no compensation for the allocated land. So, many business leaders have asked, isn’t the loss to the business too great? Relevant departments have issued interim regulations on the transfer of urban land very early, which clearly stipulate that if the allocated land is transferred, including the houses on the allocated land, the original land use rights holder must first pay the land transfer fee before the transfer or transfer can be carried out.

In other words, relevant departments such as land and resources should first pay the land transfer fee before selling these buildings to enterprises. Therefore, the reason for the current losses suffered by the company is that the relevant departments did not handle the back payment of land transfer fees in a timely manner, which led to the current losses of the company. Therefore, it is entirely possible to ask the relevant departments to compensate the company for its losses. In addition, if it is resolved in another legal relationship, it can be handled in accordance with the provisions of the Supreme People's Court on certain issues in the trial of administrative agreement cases. The regulations are very clear on how to handle administrative agreements. You can read the regulations and handle them according to the regulations.

Therefore, it does not mean that there is no way to protect the rights and interests of enterprises. We have done many cases of this kind, and basically we can get a satisfactory solution in the end. It is true that the relevant departments have some violations in the transfer process. For example, the case of a certain company in Shenyang and the case of an enterprise in Nanyang, Henan that our lawyers handled are very typical cases. They are all very typical cases. Some companies pay land transfer fees when purchasing houses and buildings, and the land transfer fees are covered by housing prices.

When encountering similar problems, you can consult a professional team of lawyers in a timely manner. The lawyers will safeguard the legitimate rights and interests of the enterprise in accordance with legal regulations, local policies, document notices from relevant departments, and relevant case precedents. You can also consult us. For political and commercial disputes, of course you should consult Beijing Yingting lawyers. We will provide detailed legal opinions based on the provisions of laws, regulations, local policy normative documents, and relevant cases, combined with some factual evidence of the case, and use legal knowledge to negotiate with the competent authorities to strive for a fair and satisfactory solution.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail.