Property Rights of Prefabricated Houses of Listed Companies

The property right duration of prefabricated houses of listed companies is primarily determined based on the land use purpose, with residential land having a duration of seventy years, calculated from the date when the developer obtains the land use rights.

Basis for Determining Property Right Duration

According to Article 12 of the Interim Regulations of the People's Republic of China on the Assignment and Transfer of the Right to Use State-owned Land in Urban Areas, the property right duration of prefabricated houses is directly related to the land use purpose. If the land is used for residential purposes, the property right duration is seventy years; for commercial, tourism, or entertainment purposes, it is forty years; and for industrial, educational, or scientific and technological purposes, it is fifty years. It is important to note that the starting point for calculating the property right duration is the date when the developer obtains the land use rights, not the date of house completion or purchase.

Ownership and Compliance of Land Use Rights

Prefabricated houses do not directly possess land use rights; their legality depends on the compliance of land acquisition and use. If the land user obtains the use rights through legal means and constructs the prefabricated house in accordance with regulations, the house can exist based on these rights. There are two specific scenarios:

1. State-owned land: If a prefabricated house is legally constructed on state-owned land and has undergone planning and construction approval procedures, the builder will obtain a land use right certificate and thus possess the land use rights.
2. Rural collective land: If a prefabricated house is built on rural collective land, it must meet the conditions for applying for homestead land and be approved for construction. Only then can the builder possess the land use rights for the homestead. If the land is occupied illegally or without fulfilling the approval procedures, the prefabricated house may face the risk of demolition.

Property Right Risks and Precautions

Prefabricated houses may face the following property right risks:

1. Incomplete development procedures: Some developers may not have obtained complete development and construction procedures or relevant certificates at the time of pre-sale, making it difficult for homebuyers to obtain property right certificates or even acquire legal property rights.
2. Change in land use purpose: If the land use purpose changes during the development process (e.g., from residential to commercial land), it may affect the property right duration or the legality of the house.
3. Restrictions on the transfer of collective land: For prefabricated houses on rural collective land, if they are not transferred through legal means (e.g., transfer or lease), property right disputes may arise.

It is recommended that homebuyers verify the land use purpose, development procedures, and property right certificates before purchasing to ensure that the house is legal and compliant and to avoid potential risks.