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making use of such land.
Article 136 The right to use construction land may be created separately on the surface of or above or under the land. The newly-established one may not injure the usufructuary right that has already been established.
Article 137 The right to use construction land may be created through transfer or allotment, etc.
As regards the land used for purposes of industry, business, tourism, entertainment or commercial dwelling houses, etc. as well as the land with two or more intended users, the alienation thereof shall adopt such means as auction, bid invitation or any other public bidding method.
It is severely restrained to create the right to use construction land through allotment. For adopting such means, the provisions on land uses in the laws and administrative regulations shall be observed.
Article 138 In case the right to use construction land is created through auction, bid invitation, or agreement, etc., the related parties shall conclude a written contract on the transfer of such right.
In general, a contract on transfer of the right to use construction land shall contain the items as follows:
(1) Names and domiciles of the parties concerned;
(2) Location and acreage, etc. of the land;
(3) Space to be covered by buildings, fixtures and affiliated facilities thereof;
(4) Use purposes;
(5) Use term;
(6) Payment methods for allotment fees and other fees; and
(7) Dispute settlement method.
Article 139 For establishing the right to use construction land, an application for registering such right shall be submitted to the registration organ. The right to use construction land shall be established as of the accomplishment of such registration. A certificate on the right to use construction land shall be issued by the registration organ to the holder of the right to use construction land.
Article 140 The holder of the right to use construction land shall reasonably use the land and may not alter the use purpose. In case the purpose of land use needs to be altered, the approval of the relevant administrative department shall be obtained.
Article 141 The holder of the right to use construction land shall, according to the legal provisions and the contract, pay transfer fees and other fees.
Article 142 As regards the buildings, fixtures and their affiliated facilities built by the holder of the right to use construction land, the holder shall enjoy the ownership thereof, unless it is otherwise proved by any contrary evidence.
Article 143 Unless it is otherwise prescribed by any law, the holder of the right to use construction land has the right to alienate, exchange, use as equity contributions, endow or mortgage the right to use construction land.
Article 144 For alienating, exchanging, using as equity contribution, endowing, or mortgaging the right to use construction land, the parties shall enter into a corresponding written contract. The parties concerned may make stipulations on the contractual term, which may not exceed the remnant term as stipulated in the contract on transfer of the right to use construction land.
Article 145 For alienating, exchanging, using as equity contribution, endowing, or mortgaging the right to use construction land, an application for alteration registration shall be submitted to the registration organ.
Article 146 When alienating, exchanging, using as equity contribution, endowing, or mortgaging the right to use construction land, the buildings, fixtures and affiliated facilities thereof on such land shall be disposed of at the same time.
Article 147 When alienating, exchanging, using as equity contribution, endowing, or mortgaging the buildings, fixtures and affiliated facilities thereof, the right to use construction land covered by the aforesaid buildings, fixtures and affiliated facilities thereof shall be disposed of at the same time.
Article 148 Before the term of the right to use construction land expires, where it is necessary to take back the land in advance by virtue of public interests, compensations shall, according to Article 42 of this Law, be given to the houses and other realties on such land, and corresponding land transfer fees shall be returned back.
Article 149 When the term of the right to use construction land for dwelling houses expires, it shall be renewed automatically.
As regards the term of the right to use construction land not for dwelling houses, the renewing shall be subject to legal provisions. In case there exists any stipulation on the ownership of houses and other realties on the aforesaid land, such stipulation shall prevail; in the case of no or unclear such stipulation, the ownership shall be determined in accordance with the provisions in the laws and administrative regulations.
Article 150 Where the right to use construction land is terminated, the transferor shall go through deregistration formalities in time, and the certificate on the right to use construction land shall be taken back by the registration organ.
Article 151 Where a piece of collectively-owned land is used as construction land, it shall be handled in accordance with the law on land administration and other related laws.
Chapter XIII Right to Use House Sites
Article 152 The holder of the right to use house sites has the right to possess and use land owned by a collective, and to construct residential houses and affiliated facilities thereof by utilizing such land.
Article 153 For acquiring, exercising and alienating the right to use house sites, the law on land administration, other related laws and the related provisions of the state shall apply.
Article 154 The right to use house site shall be terminated where a house site is terminated by virtue of any natural disaster, etc. A villager losing a house site shall be allotted a house site again.
Article 155 The alteration or cancellation registration shall be made in time in the case of the alienation or termination of a registered right to use house sites.
Chapter XIV Easement
Article 156 An easement holder shall, according to the contract, be entitled to utilize the realty of someone else so as to enhance the efficiency of his own realty.
The term "realty of someone else" as referred to in the preceding paragraph shall be the servient tenement, and "one's own realty" shall be the dominant tenement.
Article 157 For establishing an easement, the parties concerned shall enter into an written easement contract.
In general, an easement contract shall contain the items as follows:
(1) Names and domiciles of the related parties;
(2) Locations of servient tenement and dominant tenement;
(3) Purposes of use and methods;
(4) Use term;
(5) Fees and payment method; and
(6) Dispute settlement method.
Article 158 The easement shall be established since the easement contract comes into effect. Where the related parties consider that the registration thereof is necessary, they may apply to the registration organ for easement registration; otherwise, they may not challenge any third party with good faith.
Article 159 The holder of servient tenement shall allow an easement holder to use his/its land in accordance with the contract, and may not hamper the latter from exercising the right.
Article 160 An easement holder shall, according to the purposes and methods as stipulated in the contract, use the servient tenement, and make efforts to reduce the real right restrictions on the holder of the servient tenement.
Article 161 The easement term shall be stipulated by the related parties. However, it can not be longer than the remnant term of such usufructuary rights as the right to the contracted management of land, the right to use construction land, etc.
Article 162 As regards the easement enjoyed or assumed by the owner of the land, where the right to the contracted management of land or the right to use house site is created, holders of such rights may continuously enjoy or assume such established easement.
Article 163 Where any such usufructuary right as the right to the contracted management of land, the right to use construction land, the right to use house site, etc. on the land has already been established, the land owner may, without consent of the aforesaid usufructuary right holder, not establish any easement.
Article 164 The easement may not be transferred alone. Unless it is otherwise stipulated by the contract, where any such usufructuary right as the right to the contracted management of land, the right to use construction land, the right to use house site, etc. is alienated, the easement shall be alienated at the same time.
Article 165 The easement may not be mortgaged alone. Where the right to the contracted management of land or the right to use construction land, etc. is mortgaged, when such mortgage is realized, the easement shall be alienated simultaneously.
Article 166 When the dominant tenement as well as the right to the contracted management of land, the right to use construction land or the right to use house site thereon are partially alienated, the transferee shall enjoy the easement simultaneously in case the easement is involved in the alienated part.
Article 167 When the servient tenement as well as the right to the contracted management of land and the right to use construction land thereon are partially alienated, the easement shall be binding on the alienatee if the easement is involved in alienated part.
Article 168 The holder of the servient tenement has the right to rescind the easement contract in case an easement holder is under any of the following circumstances, and the easement shall be terminated:
(1) To go against the legal provisions or the contract, or misuse the easement; or
(2) As regards the paid use of servient tenement, upon expiration of the stipulated time limit for payment, fails to pay fees within a reasonable period for two times after being urged to do so.
Article 169 For changing, alienating or eliminating the registered easement, the alteration or cancellation registration shall be go through in a timely manner.
Part IV Real Rights for Security
Chapter XV General Rules
Article 170 Where the obligor fails to pay its due debts or any circumstance for realizing real rights for security as stipulated by the parties concerned happens, the holder of real rights for security shall enjoy preferred payments from the property for security, except that it is otherwise provided for by any law.
Article 171 According to the present Law or any other law, an obligee may, in such civil activities as loans or sales, establish the real rights for security in case the security is required for ensuring the realization of its/his credits.
Where a third party provides security to the obligee for an obligor, countersecurity from the obligor may be required. The countersecurity shall be pursuant to the present Law and other related laws.
Article 172 For establishing real rights for security, a security contract shall be entered into in accordance with the present Law and the other related laws. A security contract shall be a subordinate one to the principal contract. Unless it is otherwise prescribed by any law, the security contract shall be invalid when the principal contract is nullified.
After a security contract is confirmed to be nullified, the obligor, the security provider and the obligee that have faults shall, in light of their respective faults, undertake corresponding civil liabilities.
Article 173 The security range shall cover principal obligee's rights and their interests, default fines, damages as well as expenses for keeping the property for security and for realizing the real rights for security. In case there are otherwise stipulations between the related parties, such stipulations shall prevail.
Article 174 In case, during the security term, the property for security is damaged, lost or expropriated, the security holder may seek preferred payments from the insurance money, damages or indemnities, etc. incurred therefrom. If the term for performing the obligee's rights as secured has not expired, such insurance money, damages or indemnities, etc. may be submitted to a competent authority for keeping.
Article 175 As regards any security provided by a third party, where the obligee, without obtaining the written consent of the third party, allows the obligor to transfer all or part of its obligations, the security provider does not have to undertake corresponding security liabilities any more.
Article 176 As regards a secured credit involving both physical and personal security, where the obligor fails to pay its due debts or any circumstance as stipulated by the parties concerned for realizing the property for security happens, the obligee shall realize the obligee's rights as stipulated; in the case of no or unclear such stipulation, and where the obligor provides his/its own property for the security, the obligee's rights shall be realized firstly by the security in property; and if the security by property is provided by a third party, the obligee may, by the physical security or through requiring the guarantor to assume the guaranty liability, realize the obligee's rights. The third party has the right, after undertaking the security liability, to recover payments from the obligor.
Article 177 Real rights for security may be terminated under any of the following circumstances:
(1) The principal obligee's rights are terminated;
(2) The real rights for security have been realized;
(3) The obligee waives the real rights for security; or
(4) Any other circumstance under which the real rights for security will be terminated as provided for by any law.
Article 178 Where any provision in the Guarantee Law conflicts with that of the present Law, the latter shall prevail.
(To be continued)
Source: www.fdi.gov.cn, not the official translation | 
