• Revised Measures for the Disposal of Idle Land to take effect on July 1
  • June 15, 2012
  • Law Firm: Zhong Yin Law Firm - Beijing Office
  • The Measures for the Disposal of Idle Land (hereinafter referred to as "Measures") were revised and adopted recently and shall take effect on July 1, 2012. The 5-chapter and 32-article revised Measures have set forth provisions on investigation and identification, disposal and utilization, prevention and regulation, etc. and have 21 articles more than the version stipulated in 1999. This is the first revision to the Measures in 12 years.

    According to the Measures, the Idle Land means that the state-owned construction land which has not been developed or constructed over one year after the commerce day agreed/stipulated on paid use agreement or allocating decision of the state-owned construction land use right.

    The state-owned construction land whose developed area accounts for less than 1/3 of planned total construction area or whose invested capital make up less than 25% of total investment capital, and the suspend construction of which over one year, also should be deemed as Idle Land.

    According to the Measures, lands that have been idle for one whole year is subject to an idle land penalty imposed by the land and resources authorities at municipal or county level, which is equal to 20% of the grant or allocation price of the land. In the event that the land is left idle for two whole years, the land and resources authorities at municipal or county level may reclaim the land without any compensation.

    It is believed that these Measures have increased the responsibilities of governments and improved the procedures of identifying idle land, also will make the disposal and utilization of idle lands orderly and effectively.