Newsletter
Amendments to the Regulations on Permit for the PRC Citizens to Acquire, Set or Transfer the Property of Real Estates
On June 18, 2010, the Ministry of the Interior (MOI) announced revisions to Article 4 and Article 6-1 of the Regulations on Permit for the PRC Citizens to Acquire, Set or Transfer the Property Rights of Real Estates (the "Regulations"). The MOI also added Article 9-1. The amendments became effective on the day of the announcement.
Before the amendment, Article 4 of the Regulations provided that citizens or legal persons, associations or other institutions in the People's Republic of China recognized under the Act Governing the Relationship between the People in Taiwan and the People's Republic of China, and PRC-funded companies recognized under the Company Act may act as subjects of rights for registering real estates. The recent amendment narrowed the scope of citizens of the People's Republic of China. Pursuant to the amendment, citizens who are currently a member of or employed by a mainland government agency or group that is associated with political party, military, administration, or other political affairs, are not eligible as subjects of rights for registering real estates.
Originally, Article 6-1 of the Regulations provided that citizens of mainland China may not transfer property rights in residential real estate within three years of registration, unless the transfer is due to inheritance, compulsory execution, expropriation, or court order. The amendment added another provision, which stipulates that after obtaining property rights to residential real estate, citizens of mainland China also may not file for pre-registration to transfer the land rights of such property within the aforesaid three-year limitation.
The amendment also added Article 9-1, which provides that if citizens of mainland China are investing in real estate in Taiwan pursuant to the Regulations on Permitting PRC Citizens to Invest in Taiwan (the "Permitting Regulation"), they should obtain approval from the Ministry of Economic Affairs, in accordance with the Permitting Regulations, prior to applying for acquisition, setting, or transfer of real property rights.