The access to the real estate Property for the foreign residents in Shanghai

The principles recognizing and protecting the property:

They rest on two texts:

1) the fundamental Law:  March 14, 2004 of the meaningful modifications of the Constitution is about the introduction of the following arrangements:  " the private property legal of the citizen cannot be raped", " the state protects, according to the law, the right of private property of the citizen and its right of inheritance", and " the state can, in accordance with the law, to expropriate or to requisition the citizen's properties for motives of public utility, while granting a compensation"  ;

2) the Law on the real Rights adopted March 16, 2007 and that will enter in force October 1st, 2007.

The restrictions aiming the strangers:

The access to the real estate Property for the foreign residents in Shanghai

In order to block the foreign speculative funds provoking flown it of the real estate prices, six ministries being a matter for the Council of the state business published July 11, 2006, them " Relative opinions to the access of the foreign funds on the Chinese real estate market". The Township of Shanghai conformed quickly (September 2006) to this text and decided that, henceforth, only the foreign societies having a subsidiary or an office of representation there to Shanghai and the foreign physical people working or there student since more of one year can acquire a real estate for the needs clean to their activities (commercial or industrial) or to live there (article 10 of the Regulations). The candidates to the acquirement won't be able to resort to the mechanisms of figurehead and portage and should present an official document attesting the authorization of establishment of the subsidiary or the office of representation on the Chinese territory, or, for the physical people, the presence in China for work or the studies (article 11). Even though the foreign purchaser is married to a Chinese national, these restraining conditions of access to the real estate property apply if the good is acquired in its proper name.

A society or a foreign physical person who wish to invest or to buy a real estate for an use another one that its personal use, must create a society of foreign investment submitted to the authorization of the competent administrations and the procedures of registration.


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