Have you heard the word “allocation” when buying a house, running a business, or dealing with land disputes? It sounds professional, as if it were linked to government, land, approval, but specifically, what does “allocation mean”? As many people mistook it for a “transfer” “sale”, let's use the big white words and tell them what the allocation is, what it means to ordinary people, and what the legal risks are。
For example, you suddenly built a community hospital next to your neighborhood. The rate is not for developers to buy, but for governments to “pay” directly — this is the typical allocation of land. In essence, the state grants the right to use state land to a specific unit, free of charge, provided that it is used for public purposes or for specific purposes, such as schools, hospitals, government agencies, urban infrastructure, etc。
In contrast to what we are saying about “offer”, which is a “sale” of land by the government to you, you have given it up, and you have been given the right to use the land for a period of time, which is tradable; the transfer is “offer”, but it is conditional — it cannot be fired, it cannot be sold, it cannot be diverted at will — and the government has the right to take back the land and pay no compensation in the event of violation。
In a real case, zhang took over the warehouse of a state enterprise ten years ago, the nature of the land was “allocation”, he felt good, changed it to a red restaurant, and opened a business licence, which was stopped last year by the land office on the grounds that the land allocated was not allowed for commercial purposes, that unauthorized changes of use were illegal, that the restaurant had to be closed down, and that hundreds of thousands of people had to be renovated. In fact, the right to use the land is, from a legal point of view, a “conditional benefit” rather than a “private property”。
Is that all the land allocated to it? No, if you really want to do something with the land allocated, such as the construction of a staff dormitory or the expansion of a hospital, you have to follow a formal procedure: apply to the government, pay for the land concession and convert the “transfer” into “transfer”, a process called “change in the nature of the land” or “price of the land replenished”, which, once completed, is “free” and can be mortgaged, transferred and developed。
At this point, you may understand that the allocation is not a trap, but a good one, which saves costs and supports the public good, that it is not used well, that it is punished lightly, and that the weight is lost, especially in real estate transactions, business mergers and acquisitions, and project development. One word, “allocation”, could make millions of investments immediately zero。
Recommended references: how does the general population respond to the risks of land allocation? The nature of the land is ascertained before the purchase of the house: in particular, the unit housing unit, the family homes of the old state enterprises, and not just the property certificate, it is important to check the “type of land use rights” and, in the case of “transfers”, the prospective transfer may have to pay or even be limited. The use of land by enterprises must be verified: prior to the registration of the company, the construction of the plant, the lawyer is given access to the land, the transfer is confirmed and, if so, the advance planning is required to complete the transfer. Avoid unauthorized diversion: even if the house is in hand and the land is allocated, it is not possible to open houses and shops. Compliance is the long way. Caution is exercised in the case of expropriation: when land is allocated for demolition, the standard of compensation is usually lower than that of the concession, because the concession was not given and the policy was known in advance, and the “high-cost compensation” is not allowed. Reference to relevant legal provisions (concrete practical version):
What does “allocation mean”? To put it simply, the state gives land “for nothing”, but with “use instructions”, it is not property rights, it is a limited right of use, which is understood to help you avoid numerous pits, whether buying a house, starting a business or dealing with family assets, the nature of the land as a bottom line, the allocation or not, and to decide how far you can go, and not to regret and understand in advance, is the real “legal avoidance”. The pies don't fall from the sky, but sometimes they fall from the "allocations" -- the key is if you can catch them, but you can keep them。
