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Article 1. The present Opinions are hereby formulated in accordance with the relevant provisions of the "Law of the People's Republic of China on the Administration of Urban Real Estate" and "Regulations on the Administration of Urban House Dismantlement" and the state standard of "Standards for Real Estate Appraisal", for the purpose of regulating the acts of appraisal on urban house dismantlement, and safeguarding the lawful rights and interests of the parties to house dismantlement. Article 2. The present Opinions are applicable to the real estate appraisal activities with respect to dismantling houses on the state-owned land within urban planning areas. Article 3. The "appraisal on urban house dismantlement" (hereinafter referred to dismantlement appraisal) mentioned in the present Opinions refers to the appraisal made on the real estate market price of the dismantled houses on the basis of factors, such as the districts and locations of the houses, their uses and build-up areas, etc., for the purpose of determining monetary compensation for the dismantled houses. The price for house dismantlement appraisal shall be the real estate market price of the dismantled houses, excluding subsidies for relocation, subsidies for temporary resettlement, and compensation fees for stopping production or shutout caused due to the dismantlement of non-residential houses, as well as compensation fees for self fitment and decoration of the dismantled houses. The standards for the subsidies for relocation, subsidies for temporary resettlement, and compensation fees for stopping production or shutout due to dismantlement of non-residential houses, shall be implemented in accordance with the standards prescribed by the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government. The compensation fees for self fitment and decoration of the dismantled houses shall be determined through negotiations between an entity dismantling houses and the party whose house is to be dismantled; if they cannot make an agreement after negotiation, the compensation fees may be determined through entrustment of appraisal. Article 4. Dismantlement appraisal shall be made by an appraisal institution, which has the qualification of real estate price appraisal (hereinafter referred to the appraisal institution), the appraisal report shall be signed by a full time registered real estate valuator. Article 5. The principle of independence, impersonality, justice, and legality shall be adhered to for dismantlement appraisal. No organization or individual may illegally interfere with the dismantlement appraisal activities and the conclusion of value. Article 6. The departments of real estate administration at the municipalities and counties shall publicize to the public a batch of appraisal institutions with high grade of qualifications, strong comprehensive capability, and excellent public reputation, for the parties to house dismantlement to choose. The determination of the dismantlement appraisal institutions shall be open and transparent, by way of voting by the party whose house is to be dismantled, or of drawing lots by the parties to dismantlement. The dismantled houses within the same dismantlement scope, determined in the license for house dismantlement, shall be appraised by one appraisal institution in principle. In case two or more appraisal institutions are needed for the appraisal, the appraisal institutions shall coordinate with each other with respect to the basis, principles, procedures, methods, and selection of parameters, etc., of the dismantlement appraisal, and implement uniform standards. Article 7. After the dismantlement appraisal institutions have been determined, they shall be entrusted by the entity dismantling houses in general. The clients shall sign written entrustment contracts for dismantlement appraisal with the appraisal institutions. Article 8. No entrusted appraisal institution may transfer the entrustment appraisal business directly or in disguised form. The appraisal institutions and valuators shall withdraw in case they have relations of any interests with the parties to dismantlement, or they themselves are parties to the dismantlement. Article 9. The parties to dismantlement shall have the duty of providing necessary documents for dismantlement appraisal to the appraisal institutions according to facts, and assist them to make on-the-spot investigation. Article 10. Where an entrusted appraisal institution or a valuator needs to refer to the archives of real estate ownership of the dismantled houses and the relevant information on real estate transaction, the department of real estate administration shall give permission. Article 11. The purpose for dismantlement appraisal shall be expressed uniformly as: "the appraisal on real estate market price is for the purpose of determination of the monetary compensation fees for dismantled houses". The dismantlement appraisal date shall be the date of issuance of license for house dismantlement. In case the dismantlement is in large scale, and is carried out by terms and stages, the appraisal date shall be the date for carrying out the house dismantlement for the current term or stage. The standard of value for dismantlement appraisal shall be the open market value, without considering the influences of factors such as the tenancy, mortgages and seizure of the houses, etc. Article 12. Where a dismantlement appraisal is made by an agent, the parties to the dismantlement shall clarify the character (including the uses, the same hereinafter) and floor space of the dismantled houses. The standards for determination of the character and floor space of a dismantled house shall be those recorded on the certificates of ownership and the archives of ownership of the house. Where there are other special provisions on the determination of the character and floor space of the dismantled house in each region, those provisions shall prevail. Where the entity dismantling houses and the party whose house is to be dismantled have reached an agreement on the character or floor space of the dismantled house after negotiation, the appraisal may be made pursuant to the result of negotiation. In case no agreement has been reached on the character of the dismantled houses, the parties shall apply to the administrative departments in charge of urban planning for determination. In case no agreement has been reached on the floor space of the dismantled houses, the parties shall apply for appraisement to the institutions of appraisal for floor space established according to the Measures for Administration of Real Estate Surveying and Mapping; in case no institutions of appraisal for floor space have been established, the parties may entrust the entities engaging in real estate surveying and mapping, which have the qualifications of real estate surveying and mapping to make measurement and calculation. For the specific matters related to dismantlement, including the determination of the character and floor space of the dismantled houses, the administrative departments in charge of planning at the municipalities and counties and the departments of real estate administration shall formulate measures to solve them. Article 13. The people's governments at the municipalities and counties or their authorized departments shall, according to the transaction price of the local real estate market, publicize periodically the real estate market price for various houses in different regions, and with different uses and construction structures at least once a year. Article 14. The dismantlement appraisal shall be made by referring to the market transaction price of similar real property, or the real estate market price publicized periodically by the people's governments at the municipalities or counties or their authorized departments, in combination with the real estate conditions of the dismantled houses. Article 15. The dismantlement valuators shall make on-the-spot investigation on the dismantled houses, and make good records for the investigation, as well as shoot the video documents reflecting the appearance and inner conditions of the dismantled houses. The record of on-the-spot investigation shall be signed and approved by the valuator making the on-the-spot investigation, the entity dismantling houses, and the party whose house is to be dismantled. Where the failure to make on-the-spot investigation on the dismantled houses or the failure to shoot the video documents thereof is caused by the party whose house is to be dismantled, or the party whose house is to be dismantled refuses to sign on the record of on-the-spot investigation, it shall be testified by a third party without relations of any interests other than the entity dismantling houses and the appraisal institutions, and explanations concerning this shall be indicated accordingly in the appraisal report. Article 16. The market comparison approach shall be adopted for dismantlement appraisal. Other appraisal approaches may also be adopted in case the conditions for adopting the market comparison approach are not sufficient, and the reasons shall be explained fully in the appraisal report. Article 17. The dismantlement appraisal price shall be calculated by the monetary unit of Renminbi, detailed to the unit of Yuan in calculation. Article 18. The appraisal institutions shall publicize the initial appraisal result of each household to the party whose house is to be dismantled for 7 days, and make explanations on the spot and soliciting relevant opinions. After the expiration of the publicity, the appraisal institutions shall provide to the clients the overall appraisal report on the dismantled houses within the scope of entrustment and appraisal report on each household. The clients shall deliver the appraisal report on each household to the party whose house is to be dismantled. Article 19. In case the entity dismantling houses or the party whose house is to be dismantled has any question on the appraisal report, they may consult the appraisal institutions, who shall then explain to them the basis, principles, procedures, approaches, and selection of parameters of the dismantlement appraisal, as well as the process for making the conclusions of value. Article 20. Where the parties to dismantlement disagree with the conclusion of value, they may, within 5 days after receiving the appraisal report, apply in writing to the original appraisal institutions for rechecking the appraisal, and may also entrust another appraisal institution to make appraisal. Article 21. Where the parties to dismantlement apply to an original appraisal institution for rechecking the valuation, the appraisal institution shall give them a reply within 5 days from the date of receiving the written application for rechecking. A new appraisal report shall be issued in case of any alteration to the conclusion of value; in case no alteration has been made on the conclusion of value, a written notice shall be issued. Where the parties to dismantlement entrust another appraisal institution to make appraisal, the entrusted appraisal institution shall issue appraisal report within 10 days. Article 22. Where the parties to dismantlement disagree with the rechecking conclusion made by the original appraisal institution, or cannot reach an agreement after negotiation on the differences between the conclusion of value made by the entrusted appraisal institution and the original one, they may, within 5 days after receiving the rechecking conclusion or the appraisal report issued by the entrusted institution additionally, apply for technical appraisement to the Expert Committee for Appraisal of Real Estate Price (hereinafter referred to the Appraisal Expert Committee) at the locality of the dismantled houses. Article 23. The Appraisal Expert Committee shall, within 10 days from the date of receiving the application, issue written appraisement opinions on such technical problems of appraisal as the basis of appraisal, the technical route of appraisal, selection of appraisal approaches, selection of parameters, and ways of determination on conclusion of value, etc., of the appraisal report applied for appraisement. In case there are no technical problems in the appraisal report, it shall be carried through; in case of any technical problems, the appraisal institutions shall correct the mistakes, and reissue the appraisal report. Article 24. The administrative departments in charge of construction at the provinces, autonomous regions, and the municipal departments of real estate administration at the cities with districts or their authorized self-disciplinary organizations for real estate appraisal industry, shall establish an Appraisal Expert Committee consisting of full time registered real estate senior valuators and experts in real estate, city planning, and laws, etc., who shall make technical guidance to the dismantlement appraisal, and accept the technical appraisement for dismantlement appraisal. Article 25. After accepting the technical appraisement for dismantlement appraisal, the Appraisal Expert Committee shall appoint 3 or more persons in singular numbers to form an appraisement team and handle the matters concerning the technical appraisement of dismantlement appraisal. The members of the appraisement team shall withdraw in case they have relations of any interests with the original appraisal institutions or the parties to dismantlement, or they themselves are the parties to the dismantlement. The original appraisal institutions shall cooperate with the Appraisal Expert Committee to do a better job of appraisement. Article 26. Where the members of Appraisal Expert Committee, of the appraisal institutions, or the valuators shall withdraw but fail to do so, their appraisement opinions or conclusion of value shall be deemed as invalid. Where the parties to dismantlement fail to provide the relevant documents according to facts or fail to assist the appraisal institutions to make on-the-spot investigation, which cause the appraisal inconsistent with the facts or other consequences, they shall bear the corresponding liabilities. Article 27. In case the appraisal institutions or the valuators have any of the following acts, they shall be punished according to the provisions of the "Provisions on the Administration of Urban Real Estate Intermediary Services" and "Measures for the Administration of Registration of Real Estate Valuators", or their acts shall be recorded in their credit archives: (1) Issuing appraisal report inconsistent with the facts; (2) Colluding with one of the parties to dismantlement to impair the other party's legal rights and interests; (3) Winning dismantlement appraisal business by means of unfair competition including brokerage, etc.; (4) Allowing others to engage in activities of dismantlement appraisal in their names, or transferring to others the dismantlement appraisal business entrusted directly or in disguised form; (5) Being applied for verification for several times, and truly having problems after investigation and verification; (6) Violating the state standard of "Standards for Real Estate Appraisal" and other provisions of the present Opinions; or (7) Other circumstances prescribed in laws and regulations. Article 28. Where the compensation and resettlement for house dismantlement are made by way of exchanging property rights, the appraisal on the real estate market price of the house exchanged shall be implemented by referring to the present Opinions. The present Opinions shall be referred to for carrying out the real estate appraisal activities concerning house dismantlement on the state-owned land outside urban planning areas. Article 29. The present Opinions shall be implemented as of January 1, 2004. The present Opinions shall not be applicable to the dismantlement appraisal of the dismantlement projects, to which the licenses for house dismantlement have been issued before this implementation date. |
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