How can comprehensive land be converted into commercial land?

In the process of obtaining state-owned land use rights, some units and individuals often do not understand the concept of comprehensive land, and mistakenly believe that "comprehensive land" refers to state-owned land that can be used for any purpose, that is, commercial land, industrial land, storage land, or residential land. It is a mistake to understand "comprehensive land" as "universal land". It is also improper to use and transfer comprehensive land as commercial land, and it faces legal risks.

Composite land refers to land that is made up of land for different uses within the same parcel. According to Article 12 of the Interim Regulations on the Assignment and Transfer of Urban State-owned Land Use Rights, the use of state-owned land in China includes commercial and comprehensive land, of which the maximum term for commercial land transfer is 40 years and the maximum term for comprehensive land transfer is 50 years. Therefore, commercial land and comprehensive land are two different uses, and their acquisition methods and land prices are different.

In the land transfer, in addition to checking the transferor's "State-owned Land Use Certificate" and checking the land use stated on it, the transferee should also ask the transferor to provide the "Land Use Right Transfer Contract" signed at the time of land transfer or transfer to check the two sides to find out the specified land use, so as to avoid losses caused by purchasing commercial land only to buy comprehensive land.

How can it be denatured in the case of a target parcel where the current use is clearly integrated and the transferee intends to acquire commercial land? According to Article 18 of the Interim Regulations on the Assignment and Transfer of Urban State-owned Land Use Rights, if a land user needs to change the land use specified in the land use right transfer contract, it shall obtain the consent of the transferor and obtain the approval of the land management department and the urban planning department, re-sign the land use right transfer contract in accordance with the relevant provisions of this chapter, adjust the land use right transfer fee, and go through the registration process. This article clarifies the approval procedures for the change of land use, and may involve an increase in the land use right transfer fee, and the transferee shall consult with the local ** and relevant administrative departments on how to handle the change procedures.

What are the risks of using the original mixed-use land for commercial purposes without converting it into commercial land? First, there is a risk of being found to change the use of land without authorization, illegally occupy land, impose fines or repossess land; second, there is a risk that the transferee will be ordered to pay the land transfer fee according to the commercial use, which will increase the investment of the transferee; The third is the risk that the land will be assessed at a lower value due to its comprehensive use in the case of transfer or demolition compensation that may occur in the future. In order to reduce the risk of acquisition, it is recommended that the transferor should re-transfer the mixed-use parcel to commercial use in accordance with the law, and then the transferee should purchase the parcel (the contract can be signed to make it clear that the land change is set as a condition for the payment of the transfer fee).

To sum up, land use is a very important factor in the use of state-owned land, which must not be ignored, and it is recommended to hire a lawyer to check the whole process when purchasing such assets to eliminate legal risks.

If the land user needs to change the land use specified in the land use right transfer contract, it shall obtain the consent of the transferor and obtain the approval of the land management department and the urban planning department, sign a new land use right transfer contract in accordance with the relevant provisions of this chapter, adjust the land use right transfer fee, and go through the registration process.

Legal basis: Article 10 of the Interim Regulations on the Assignment and Transfer of Urban State-owned Land Use Rights Article 2 The use of China's state-owned land includes commercial and comprehensive land, of which the maximum term for commercial land transfer is 40 years, and the maximum term for comprehensive land transfer is 50 years.

Legal Analysis: If a land user needs to change the land use specified in the land use right transfer contract, it shall obtain the consent of the transferor and obtain the approval of the land management department and the urban planning department, and re-sign the land use right transfer contract in accordance with the relevant provisions of this chapter, adjust the land use right transfer fee, and go through the registration.

Legal basis: Interim Regulations on the Assignment and Transfer of Urban State-owned Land Use Rights Article 12 The use of state-owned land in China includes commercial and comprehensive land, of which the maximum term for commercial land transfer is 40 years, and the maximum term for comprehensive land transfer is 50 years.