【正文】 ion of real estate, and exercising administration of real estate in the Stateowned land within a planned urban district in the People39。s Republic of China (hereinafter referred to as the Stateowned land) shall ply with this Law. Houses as used in this Law means buildings and structures such as houses on the land. Development of real estate as used in this Law means acts of building infrastructure and houses on the Stateowned land, the landuse right for which has been obtained in accordance with this Law. Transaction of real estate as used in this Law includes transfer of real estate, mortgage of real estate and lease of houses. Article 3 The State shall practise a pensatory and terminable system for the use of Stateowned land in accordance with the law, however, allocation of the landuse right by the State under this Law shall be excepted. Article 4 The State shall, based on the social and economic development, support the development of construction of residential houses so as to gradually improve the housing conditions of residents. Article 5 Obligees of real estate shall abide by the laws, administrative rules and regulations and pay taxes according to law. The legitimate rights and interests of the obligees of real estate shall be protected by law and shall not be infringed by any units or individuals. Article 6 The department of construction administration and the department of land administration under the State Council shall, in accordance with the division of functions and powers prescribed by the State Council, attend to their own duties, act in close coordination and manage the work concerning real estate of the whole country. Institutional structures, and functions and powers of the departments of housing administration and land administration under the people39。s governments of the cities or counties after their submission to and approval by the people39。s government of the city or county, conclude an agreement on the modification of the granting contract or conclude a new contract for granting the landuse right and the fees for granting the landuse right shall be accordingly readjusted. Article 18 All the fees for granting the landuse right shall be turned over to the State Treasury and incorporated into the budget so as to be used for the construction of urban infrastructure and for land development. Specific measures for the turning over and use of the fees for granting the landuse right shall be formulated by the State Council. Article 19 Before the term for the use of land specified in the contract for granting the landuse right expires, the State is not to recover the landuse right obtained by the land user in accordance with the law. Under special circumstances as required by public interests, the State may, in accordance with legal procedures, recover the landuse right before the expiration of the term and shall make appropriate pensation based on the number of years of utilization and the actual development of the land by the land user. Article 20 The landuse right shall be terminated with loss of the land. Article 21 Where the term for the use of land specified in the contract for granting the landuse right expires, and the land user needs to continue the use of the land, the land user shall apply for an extension of the term no later than one year ahead of the expiration. Such an application shall be approved except for the land to be reclaimed as required by public interests. Upon approval of the extension, the land user shall enter into a new contract for the granting of the landuse right and pay fees for the granting in accordance with the relevant regulations. Where the term for the use of land specified in the contract for granting the landuse right expires, and the land user has not applied for an extension of the term or his application therefore is not approved in accordance with the provisions in the preceding paragraph, the landuse right shall be reclaimed by the State without pensation. Section 2 Allocation of the Landuse RightArticle 22 Allocation of the landuse right refers to acts that the people39。 (3) To have registered assets conforming to the regulations of the State Council。 (5) The ownership is under dispute。 (2) Having a permit for construction project planning。 (4) To have sufficient professional personnel。s government at the corresponding level. Upon verification by the department of land administration under the people39。s government at the corresponding level. Where provided otherwise by laws, the provisions of such laws shall apply. Article 61 Where real estate is to be mortgaged, registration of mortgage shall be made with the department designated by the local people39。s government at or above the county level. Upon verification by the department of land administration under the local people39。 and (4) Having made registration for presale with the administrative department in charge of house property under the people39。 or (7) Other circumstances under which transfer is prohibited by the provisions of laws, administrative rules and regulations. Article 38 Where the landuse right has been obtained by means of granting, transfer of the real estate shall meet the following conditions: (1) Having paid all the fees for the granting of the landuse right as agreed upon in the granting contract and obtained the certificate of the landuse right。 and (5) Other conditions as provided by laws, administrative rules and regulations. To establish a real estate development enterprise, an application for registration of establishment shall be made to the administrative department for industry and merce. Where conditions specified in this Law are met, the administrative department for industry and merce shall register the establishment and issue a business license. Registration shall not be made, where such conditions are not met.