【正文】 out pensation. Section 2 Allocation of the Landuse RightArticle 22 Allocation of the landuse right refers to acts that the people39。s government of the city or county must provide the land granted as agreed upon in the granting contract。 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 and their departments concerned of the counties under the municipalities directly under the Central Government shall be prescribed by the people39。s governments of the cities or counties after their submission to and approval by the people39。s governments of the cities or counties in a planned and stepbystep way. With regard to each lot granted, plans for its purposes, term of use, and other conditions shall be worked out by 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。s governments of provinces, autonomous regions or municipalities directly under the Central Government. Chapter II Land Used for Development of Real EstateSection 1 Granting of the Landuse RightArticle 7 Granting of the landuse right refers to acts that the State grants land users the right to use the Stateowned land (hereinafter referred to as the landuse right) for a certain number of years and the users shall pay the State a granting fee for the landuse right. Article 8 The landuse right for the collectiveowned land within a planned urban district may be granted with payment only after it is requisitioned in accordance with the law and turned into Stateowned land. Article 9 Granting of the landuse right must conform to the overall planning for land utilization, urban planning and the annual plan for land to be used for construction. Article 10 Where the local 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 Congress on July 5, 1994 and promulgated by Order of the President of the People39。Law of the People39。s Republic of China on the Administration of the Urban Real Estate (Adopted at the Eighth Meeting of the Standing Committee of the Eighth National People39。s Republic of China on July 5, 1994) Contents Chapter I General Provisions Chapter II Land Used for Development of Real Estate Section 1 Granting of the Landuse Right Section 2 Allocation of the Landuse Right Chapter III Development of Real Estate Chapter IV Transaction of Real Estate Section 1 General Conditions Section 2 Transfer of Real Estate Section 3 Mortgage of Real Estate Section 4 Lease of Houses Section 5 Intermediary Service Agencies Chapter V Administration of Real Estate Ownership Registration Chapter VI Legal Liability Chapter VII Supplementary Provisions Chapter I General ProvisionsArticle 1 This Law is formulated in order to strengthen the administration of the urban real estate, maintain the order of real estate market, protect the legitimate rights and interests of real estate obligees and promote the sound development of real estate business. Article 2 Obtaining the landuse right for development of real estate, engaging in development of real estate and transaction of real estate, and exercising administration of real estate in the Stateowned land within a planned urban district in the People39。s governments at or above the county level shall be determined by the people39。s governments at or above the county level grant landuse right for devel