【正文】 e relevant regulations of the State, submit the presale contracts to the departments of housing administration and departments of land administration under the people39。s government at or above the county level in the place where the registration authority is located. Article 30 The proportion of registered assets of a real estate development enterprise to its total investment shall ply with the relevant regulations of the State. Where a real estate development enterprise develops real estate in phases, the amount of phased investment shall be mensurate with the scale of the project and the capital shall be put into construction of the project on schedule as agreed upon in the contract for granting the landuse right. Chapter IV Transaction of Real EstateSection 1 General ConditionsArticle 31 In the transfer or mortgage of real estate, the ownership of the house and the landuse right to the house site shall be transferred or mortgaged therewith. Article 32 The basic land price, standard land price and replacement prices for houses of various types shall be determined and made public regularly. Specific measures shall be formulated by the State Council. Article 33 The State shall practise an appraisal system for real estate prices. The appraisal of real estate prices shall adhere to the principles of justice, fairness and openness, and be carried out according to the technical standard and appraisal procedures prescribed by the State, based on the basic land price, standard land price and replacement prices for houses of various types and in the light of local market prices. Article 34 The State shall practise a report system for real estate transaction prices. An obligee of real estate shall, in transfer of his real estate, truthfully report the transaction price to the department designated by the local 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。Law of the People39。 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 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。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