【正文】 of house property shall be submitted to the department of housing administration under the local people39。s government at or above the county level is in charge of both housing administration and land administration as determined by the people39。s government at the corresponding level. Where a house has been built on the land for real estate development obtained pursuant to the law, an application for registration shall, on the strength of the certificate of landuse right, be submitted to the department of housing administration under the local people39。s governments at or above the county level for registration and record. The proceeds obtained from the presale of mercial houses must be used for the relevant construction projects. Article 45 In the case of presale of mercial houses, matters concerning the transfer of unfinished presale mercial houses that the buyers have purchased shall be prescribed by the State Council. Section 3 Mortgage of Real EstateArticle 46 Mortgage of real estate refers to acts that a mortgagor provides the mortgagee security for the payment of a debt with his legal real estate in the manner that the possession of his real estate is not transferred. Where a debtor fails to pay his debt, the mortgagee shall have the right in accordance with the law to enjoy the priority in pensation to be paid with funds obtained from auction of the real estate mortgaged. Article 47 A mortgage may be created on the ownership of a house obtained according to law together with the landuse right to the house site. A mortgage may be created on the landuse right obtained by means of granting. Article 48 The mortgage of real estate shall be dealt with on the strength of the certificate of the landuse right and the certificate of ownership of the house. Article 49 For the mortgage of real estate, the mortgagor and the mortgagee shall enter into a written mortgage contract. Article 50 Where the landuse right on which a mortgage is created has been obtained by means of allocation, the mortgagee may enjoy the priority in pensation only after the amount equal to the fees for the granting of the landuse right has been paid from the funds obtained from auction of the real estate done in accordance with the law. Article 51 After a contract for the mortgage of the real estate has been concluded, newlybuilt houses on the land shall not be regarded as the mortgaged asset. If the mortgaged real estate needs to be sold by auction, the newlybuilt houses on the land may be auctioned off according to law together with the mortgaged assets. However, the mortgagee shall not have the priority in pensation with respect to the funds obtained from auction of the newlybuilt houses. Section 4 Lease of HousesArticle 52 Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a leasee for use and the leasee pays rent for the house to the leaser. Article 53 In the lease of a house, the leaser and the leasee shall conclude a written lease contract defining such matters as the term, purpose and price of the lease, liability for repair, as well as other rights and obligations of both parties, and shall register the lease with the department of housing administration for the record. Article 54 Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and the people39。s government that has the authority for approval. Upon approval of the transfer by the people39。s government at or above the county level and shall not make a concealed or false report. Article 35 Where real estate is transferred or mortgaged, the party concerned shall register the ownership of the real estate pursuant to the provisions of Chapter V of this Law. Section 2 Transfer of Real EstateArticle 36 Transfer of real estate refers to acts that an obligee of real estate transfers his real estate to another person through sale, donation or other legal means. Article 37 No following real estate shall be transferred: (1) The landuse right has been obtained by means of granting, however, not meeting conditions set forth in Article 38 of this Law。 (3) Land used for projects of energy, munications or water conservancy, etc. which are selectively supported by the State。 where conditions do not permit and it is impossible to adopt the means of auction or bidding, the means of agreement between the two parties may be adopted. Fees for granting the landuse right by means of agreement between the two parties shall not be lower than the lowest price determined in accordance with the regulations of the State. Article 13 The maximum term for the granting of the landuse right shall be prescribed by the State Council. Article 14 Granting of the landuse right shall be conducted through concluding a written granting contract. The contract for granting the landuse right shall be concluded between the departments of land administration under the people39。s governments at or above the provincial level, draw up plans for the total area for annual granting of the landuse right, which shall, according to the regulations of the State Council, be reported to the State Council or the provincial people39。Law of the People39。s governments at or above the county level grant landuse right for development of real estate, they must, based on the quota set by the people39。s governments of the municipalities directly under the Central Government. Article 12 The landuse right may be granted by means of auction, bidding or agreement between the two parties. For Land used for mercial, tourism, recreation and luxury housing purposes, where conditions permit, the means of auction or bidding shall be adopted。 (2) Land used for urban infrastructure or public utilities。s government at or above the county level in the place where the registration autho