Hainan: industrial land can be rented first and then transferred to reduce the cost of enterprise land use

category:Finance
 Hainan: industrial land can be rented first and then transferred to reduce the cost of enterprise land use


The detailed rules for the implementation of the rules clearly define the scope of application, the number of years of land supply, land price, land supply procedures, assessment and evaluation requirements.

As for the scope of application of rent first and then yield, the implementation rules points out that the municipal and County Peoples governments can provide land to various industrial projects that meet the requirements of the state and Hainan provinces industrial policies, excluding commercial residential projects.

In terms of land supply term and land price, the lease term of first lease and then transfer is generally 5 years, with a maximum of 10 years. The sum of the lease term and the subsequent transfer period shall not exceed the legal maximum transfer period of the land use. The total price of the land to be leased and then transferred shall be determined according to the transaction price of the land publicly traded by means of bidding, auction and listing. The annual rent shall not be less than 5% of the total land price, and the agreed transfer price to be paid when the lease is transferred out is equal to the total land price minus the rent paid.

With regard to the procedure of renting before transferring, the detailed rules for implementation points out that the municipal and county natural resources and planning authorities shall work out a land supply scheme together with relevant departments and submit it to the peoples government with the approval right for approval. The land shall be leased to the land-use right holder by means of bidding, auction and listing, and signed by relevant departments and land-use right holdersu300a Industrial project development and land access agreement; when the lease term is up to the performance conditions through the assessment and evaluation organized by the municipal and County Peoples governments, the land use approval and land registration procedures shall be handled according to the agreement transfer method. For the assessment and evaluation of the first lease and then transfer, the land-use right holder shall submit an application for assessment and evaluation six months before the expiration of the lease term, and the peoples Government of the city and county or the relevant competent departments of parks and industries that have signed the access agreement shall assess and evaluate the performance of the access agreement. Those who pass the assessment shall sign a land transfer contract with the land user; those who fail to pass the assessment shall be rectified within a time limit, and the longest rectification period shall not exceed one year. The municipal and County Peoples governments may take back the land use right, dispose of the above ground buildings, structures and other ancillary facilities, and investigate the responsibility for breach of contract. Source: surging news editor: Wang Xiaowu_ NF

For the assessment and evaluation of the first lease and then transfer, the land-use right holder shall submit an application for assessment and evaluation six months before the expiration of the lease term, and the peoples Government of the city and county or the relevant competent departments of parks and industries that have signed the access agreement shall assess and evaluate the performance of the access agreement. Those who pass the assessment shall sign a land transfer contract with the land user; those who fail to pass the assessment shall be rectified within a time limit, and the longest rectification period shall not exceed one year. The municipal and County Peoples governments may take back the land use right, dispose of the above ground buildings, structures and other ancillary facilities, and investigate the responsibility for breach of contract.