China Update: Chinese Real Estate

The PRC Property Right Law ("Property Law") was promulgated and approved by the National People’s Congress ("NPC") on March 16, 2007 and will become effective from October 1, 2007. The Property Law, which covers a wide range of matters affecting both personal and real property, is one of the most important pieces of legislation to be promulgated in the People’s Republic of China ("PRC") in recent years. Work on the Property Law started in 1993 and previous drafts underwent a record number of readings by the Standing Committee of the NPC.

The Property Law expands existing provisions regarding property rights and is a major milestone in the development of a more systematic regime for protection of property rights. It, like the PRC Contract Law, promulgated in 1999, is a core constituent part of China’s civil law and it confers, for the first time, equal protection for property rights of the state, collectives and individuals.