china enacts property rights law

china enacts property rights law - Client briefing June...

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HKG-1/683904/07 Client briefing June 2007 China Enacts Property Rights Law After 14 years of drafting, eight rounds of discussions and considerable controversy, the National People's Congress (" NPC ", China's highest legislative body) finally adopted the Property Rights Law of the People's Republic of China (" PRL ") on 16 March 2007, the first comprehensive civil law governing property rights in the PRC. 1 The PRL will take effect on 1 October 2007. The PRL covers a broad range of matters in relation to property rights, containing 247 articles divided into five chapters. 2 In addition to consolidating some of the existing rules relating to property rights that can be found scattered in a number of other laws, the PRL also introduces several new concepts and measures, such as an improved registration system for real property in China and a significant extension of available security interests. Given the breadth of issues that the PRL covers, this briefing is not intended to be a complete overview but highlights some of the key aspects which may have a significant impact on the Chinese legal landscape. Scope of Application The PRL governs the civil relationships arising from obtaining and utilising property. It covers both real property and personal property. Real property usually includes land, buildings and other immovable fixtures and personal property refers to all property other than real property. 3 Property rights recognised by the PRL include ownership ( 所有权 ), usufructuary rights ( 用益物权 ) and security rights ( 担保物权 ). 4 (a) Ownership : the right to possess, use, benefit from and dispose of real property and personal property; (b) Usufructuary rights : the right to possess, use and benefit from real property and personal property owned by others; and (c) Security rights : the rights of secured creditors to be reimbursed from the proceeds of disposed collateral in priority to unsecured creditors, including right of mortgage, right of pledge and right of lien. 1 The title, the Property Rights Law , in Chinese is 物权法 . As there are no corresponding terms for this concept under Anglo-Saxon law and no official English translation is available to date, the author has adopted the commonly used translation of this term for the purpose of this article (i.e., 物权法 is translated into "Property Rights Law", 物权 is translated into "property rights" and is translated into "property"). 2 The five Chapters are (1) general provisions (2) ownership (3) usufructuary rights (4) security rights and (5) possession. 3 Although the PRL does not define real property and personal property, these concepts have been defined in other laws. For instance, Article 92 of the PRC Security Law provides that real property refers to land, building, standing timber and other fixtures affixed to land; personal property refers to all properties other than the real property. 4
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This note was uploaded on 06/22/2008 for the course RE 201 taught by Professor Ac during the Fall '07 term at HKU.

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china enacts property rights law - Client briefing June...

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