China to further standardize land acquisitions and compensation practices

0 Comment(s)Print E-mail Xinhua, July 15, 2011
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China's central government on Thursday said local governments must conform with its regulation on land acquisitions and compensation practices.

The Legislative Affairs Office of the State Council, the Ministry of Housing and Urban-Rural Development and the Ministry of Land and Resources jointly issued an order to phase out rules and regulations contradictory to or not in line with the national regulation.

According to a public notice, the order is targeted at local governments. Local governments are required to phase out rules and local regulations counter to the national regulation by Oct. 1.

The national regulation on land acquisition and compensation came into effect on Jan. 19, 2011, and is designed to protect homeowners.

It provides, for instance, that compensation paid to homeowners should not be lower than the sum of the market price of the property, the cost of moving and temporary accommodation, and losses caused by suspension of business.

There have been many instances since China reformed the property market where homeowners and property developers have come into conflict over demolition plans and compensation payouts.

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