English Translation of Property Rights Law of the People’s Republic of China (2007): PART V: Possession

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Click on "Read More" below to access Part V of Property Rights Law of the People’s Republic of China.

Click Table of Contents for a bulleted outline of the details that can be found under each part of the recently passed law.

PART V: POSSESSION

Chapter XIX Possession

Article 241
In the event of possession arising from contractual relationship, the use, benefits and breach liabilities of relevant real property and/or movable property shall be subject to the terms and conditions of contract. In the absence of such contract or in the event of ambiguous terms and conditions thereof, other relevant laws shall apply.
Article 242
Where the possessor causes any damage to the real or movable property due to his use of such property, the mala fide possessor shall bear compensation and liability.
Article 243
Where the real or movable property is possessed, the relevant right holder may request return of the original item together with any harvest thereof. A bona fide possessor may deduct necessary expenses for maintenance of such property.
Article 244
Where the real or movable property is damaged or lost and the relevant right holder requests compensation, the possessor shall return the insurance, damages or any compensation fee to the right holder. Where the losses are not fully recovered by the compensation, mala fide possessor shall further make up for the deficiency except to the extent that he was at no fault with regards to the occurrence of the damage.
Article 245
Where the real or movable property is seized by the use of force, the possessor shall have the right to request return of the original property. In the event of any obstruction to the possession, the possessor shall have the right to eliminate the obstruction. In the event of any damage incurred from the seizure or obstruction, the possessor shall have the right to compensation.
The right of request for return of the original property shall lapse if the possessor has not exercised his right within one year of the date of seizure.

Supplementary Provision

Article 246
Prior to the release of any law and administrative regulations on the scope of real property registration, registration authority and relevant registration methods, relevant local regulations may be formulated by reference to this Law by local People’s Congress and its Standing Committee.
Article 247
This Law shall take effect as of October 1, 2007.

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Table of Contents

Part I: GENERAL PROVISIONS

Part II: OWNERSHIP

Part III: USUFRUCTUARY RIGHTS

Part IV: SECURITY INTEREST IN PROPERTY RIGHTS

Part V: POSSESSION