This guide covers title, purchases, leasing, development, and disputes for foreign parties.
1. Land use rights and title
State-owned land is granted or allocated for terms that vary by use (e.g., residential, industrial, commercial). Buildings and land-use rights are registered; always verify registration records, encumbrances, and whether the seller can lawfully transfer to a foreign individual or entity.
| Scenario | Focus checks | Risk if skipped |
|---|---|---|
| Buy residential | Foreign eligibility, registration, encumbrances | Deposit loss / voided deal |
| Commercial lease | Lessor authority, use vs license, registration | Forced relocation / fines |
| Development | Land grant, planning, construction permits | Unlawful construction |
| Finance | Mortgage registration priority | Unenforceable security |
2. Foreign individual purchases
Many cities restrict foreign individual home purchases (work/study duration, one-home policies, local variations). Using nominees is legally and practically risky. Corporate purchase through a WFOE may fit commercial needs but brings tax and substance requirements - see the company formation guide.
Nominee arrangements ("friend holds title for you") create ownership, tax, and enforcement nightmares. Do not use them as a shortcut around eligibility rules.
3. Commercial leasing
Leases should address term, rent adjustments, deposit, fit-out, reinstatement, subletting, early termination, and registration where required. Shopping mall and office leases often include sales-based rent and exclusive-use clauses. Ensure the lessor has authority and the premises use matches business scope/licensing.
Align lease use with licenses (F&B, medical, education, etc.) before paying large deposits or starting fit-out. Licensing failure is a classic stranded-cost scenario.
4. Development and construction
Development projects involve land grant contracts, planning permits, construction permits, completion acceptance, and pre-sale rules for residential. Contractor disputes (delay, quality, payment) are common - link dispute clauses to asset location via the dispute resolution guide.
5. Mortgages and finance
Bank mortgages require clean title and valuation. Enforceability and priority depend on registration. Cross-border financing may add SAFE and security registration layers.
6. Disputes
Typical fights: deposit forfeiture, hidden defects, delayed delivery, co-ownership breakup, and landlord lockouts. Preserve sale contracts, WeChat negotiations, payment proofs, and inspection reports. Family property splits may also engage the divorce & family guide.
7. Checklist
- Pull official registration and seller identity verification.
- Confirm foreign eligibility before paying large deposits.
- Use escrow/custody arrangements where available.
- Align lease use with licenses (F&B, medical, education, etc.).
- Model tax (deed, VAT, IIT/CIT) before signing.
- Register mortgages and key lease interests when required for priority.
