Interpretation I of the Supreme People's Court on Several Issues concerning the Application of the Property Law of the People's Republic of China
(Interpretation No. 5  of the Supreme People's Court, adopted at the 1,670th Session of the Judicial Committee of the Supreme People's Court on
December 10, 2015, and coming into force on March 1, 2016)
For the correct application of law in the trial of cases involving property disputes, this Interpretation is developed in accordance with the relevant provisions of the Property Law of the People's Republic of China and in consideration of civil trial practices.
Article 1 Where a party files a civil action for a dispute arising from the attribution of a real right in an immovable or from purchase and sale, gift, or mortgage, among others, as the basis for the registration of a real right in an immovable, the action shall be accepted in accordance with the law, unless the party has applied in administrative litigation for the concurrent settlement of the aforesaid civil dispute and the people's court grants the concurrent trial.
Article 2 Where a party has evidence that the information recorded in a register of immovable property is inconsistent with the true status of a right and the party is the true holder of the real right in the immovable, the party's request for confirmation of the party's real right in the immovable shall be supported.
Article 3 Where, after a dissidence registration ceases to be effective for the reason prescribed in paragraph 2 of Article 19 of the Property Law, a party files a civil action to request confirmation of the attribution of a real right in the property, the request shall be accepted in accordance with the law. The fact that a dissidence registration ceases to be effective does not affect the people's court's substantive trial of the case.
Article 4 Where, without the consent of the right holder in an advance notice registration, the ownership of an immovable is transferred or any other real right such as the right to use the land for construction, servitude, or mortgage is created, the transfer or creation shall be determined to produce no effect of a real right in accordance with the provisions of paragraph 1 of Article 20 of the Property Law.
Article 5 Where an agreement on the purchase and sale of a real right in an immovable is determined as void or is revoked or rescinded or the right holder in an advance notice registration waives its claims, it shall be determined as the extinction of claims as mentioned in paragraph 2 of Article 20 of the Property Law.
Article 6 Where the ownership of a vessel, aircraft, or motor vehicle, among others, is transferred, and the transferee has paid the consideration and possessed the property but without undergoing registration, if a creditor of the transferor claims that the creditor is a “bona fide third party” as mentioned in Article 24 of the Property Law, such a claim shall not be supported, unless it is otherwise provided for by any law.
Article 7 Legally effective written judgments or awards including consent judgments or awards rendered by people's courts or arbitration commissions in cases involving division of co-owned immovable property or movable property, among others, which change the original property relationships and written rulings on auction deals or offsetting debts with property rendered by people's courts in the enforcement procedure shall be determined as the legal instruments of people's courts or arbitration commissions which lead to the creation, modification, transfer, or extinction of a real right as mentioned in Article 28 of the Property Law.
Article 8 Where a holder of a real right in accordance with the provisions of Articles 28 to 30 of the Property Law requests protection of its real right in accordance with the provisions of Article 34 to 37 of the Property Law, although the delivery of the movable or the registration of the immovable has not been completed, such a request shall be supported.
Article 9 Where a co-owner in divided co-ownership changes for succession, bequeathment, or any other reason, and other co-owners claim a preemptive right, the claim shall not be supported, unless it is otherwise agreed upon among the co-owners of the divided co-ownership.
Article 10 “Equal conditions” as mentioned in Article 101 of the Property Law shall be determined by comprehensively considering the transfer price of the fraction of divided co-ownership, performance method and period for payment, and other factors.
Article 11 Where the co-owners in divided co-ownership have agreed upon the period for exercise of the preemptive right, such agreement shall apply; or in the absence of such an agreement or if such an agreement is ambiguous, the exercise period shall be determined respectively under the following circumstances:
(1) If the exercise period is clearly stated in a notice including equal conditions sent by the transferor to other co-owners in divided co-ownership, such a period shall prevail.
(2) The exercise period shall be 15 days if the exercise period is not clearly stated in the foresaid notice or the clearly stated period is less than 15 days from the date of service of the notice.
(3) If the transferor fails to send the aforesaid notice, the exercise period shall be 15 days from the date when other co-owners in divided co-ownership know or should have known the finalized equal conditions.
(4) If the transferor fails to send the aforesaid notice and whether other co-owners in divided co-ownership know or should have known the finalized equal conditions cannot be determined, the exercise period shall be six months from the date when the fraction of the co-ownership is transferred.
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