Abstract
China has experienced a two-stage city transition—urbanisation and townification. The consequence of urbanisation has increased the multi-owned property (MOP) rights boom in urban China. The MOP boom extends to peri-urban and rural areas during townification. As the city transition occurs ahead of legislations, it drives the need of legislation and triggers a MOP rights boom in China.
The MOP rights are mainly protected by three legislations: the 2004 Constitution amendment, the 2007 Property Law and the coming amendment of the Land Administration Law. The history of legislation improvement records the appropriateness of MOP rights for private property owners upon the demand of rights protection with the trend of city transitions.
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Notes
- 1.
(Law) the right to use and derive profit from a piece of property belonging to another, provided the property itself remains undiminished and uninjured in any way. Source: Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014.
- 2.
Jus in re propria includes proprietary ownership, co-ownership and division of building ownership. Here we stress two of them.
- 3.
A bona fide third party shall get the property rights on three bases: good faith action, reasonable payment and the requisite registration . According to the Property Law, the bona fide third party may possess the rights and retain the property facing the contest from the actual property owner (the Property Law, Article 106). The actual owner shall only claim the damage back from the nominee owner under obligation relation, but cannot seek the property rights from the bona fide third party . The interest of the bona fide third party with respect to the property is therefore protected (Daixiong 2010).
- 4.
The mortgaged rights are displayed to the public including the bona fide third party . The self-disciplined party should be aware of the property ownership before any form of transactions .
- 5.
The Property Law provides that parties who reach an agreement for the sale and purchase of the property may apply for a pre-registration of the transaction contract with the registration authority and discourages double selling of a property. The introduction of the pre-registration system enables a sale and purchase agreement to be available for a pre-registration by a buyer , any other prospective buyers will be put on notice that the immovable property is already ‘encumbered’. The consequence of the deed is that the property under pre-registration cannot be disposed of or mortgaged without the consent of the buyer who has pre-registered the property (Article 20). Pre-registration is capable of contesting any other buyers’ claim on the basis of the legislation , and effectively protects the pre-registered person’s rights.
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Acknowledgements
The authors would like to thank the support given by the Ministry of Education, Humanities and Social Sciences Research Youth Foundation, China. [2015年教育部人文社会科学研究青年基金项目,项目批准号15YJC630158].
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Yang, Z., Rajabifard, A. (2018). City Transition: A MOP Rights Boom in China. In: Altmann, E., Gabriel, M. (eds) Multi-Owned Property in the Asia-Pacific Region. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56988-2_5
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