Real Estate Investment Under China's New Land Use Laws

Mitigating Complex Legal Risks, Seizing New Opportunities

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Tuesday, January 8, 2008

Course Materials

Description

As China’s population skyrockets past 1.3 billion and the demand for living and office space soars, U.S. investors anxiously seek real estate opportunities there. However, investment restrictions, land ownership rules and China’s unique culture make foreign investment complicated.

New Chinese Property Laws became effective in October 2007, providing some direction for investors. However, regulations limiting foreign access to investment in the Chinese real estate market create continuing uncertainty for U.S. investors.

Listen as our panel of real property attorneys explains the current cultural and regulatory environment for real estate investment in China, the legal risks of investing in Chinese real estate and best practices for mitigating those risks.

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Outline

  1. Recently enacted laws impacting real estate investment in China
    1. 2007 Chinese Property Laws
      1. Renewal, transfer and termination of land use rights
      2. Registration of land use and access to registration records
      3. Eminent domain
      4. Mortgages
    2. 2006 regulations for acquisition of land use rights
      1. Must invest via a China-based foreign invested real property company
      2. Must obtain approval from Chinese government for capital contributions
    3. 2007 foreign investment guidance
  2. Best practices for mitigating investment risk
    1. Understand China’s unique land issues, e.g., verifying ownership, renewing and transferring land use rights
    2. Use separate foreign invested real property company for each property purchase
    3. Use appropriately structured shareholder loans
    4. Consider joint ventures

Benefits

The panel reviewed these and other key questions:

  • How have the 2007 Chinese Property Laws altered the Chinese government's treatment of land ownership?
  • What restrictions did the 2006 regulations place on foreign investments in China's real estate market?
  • What are some best practices for mitigating the legal risks of investing in Chinese real estate?

Faculty

Steven Dickinson
Steven Dickinson
Partner
Harris Moure

He has over 25 years of experience working with China and advises foreign companies on doing business in or with China....  |  Read More

Anna Han
Anna Han
Senior Counsel
White & Case

She advises companies on investing and doing business in China and writes and speaks extensively on the development of...  |  Read More

Amy L. Sommers
Amy L. Sommers
National Partner
Squire Sanders & Dempsey

She has significant experience with corporate structuring, governance and operations issues in China. She advises on a...  |  Read More