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Free Guide to Hiring a Real Estate Lawyer
This guide explains how real estate contracts and negotiations typically work in Xiamen, a major coastal city in Fujian Province, People’s Republic of China. Real estate transactions in Xiamen are governed by national laws such as the Civil Code and laws on land administration and real rights, together with municipal implementation rules and administrative procedures. In practice this means buyers, sellers, developers, landlords and tenants must follow written-contract formalities, complete registration steps with local authorities, pay applicable taxes and fees, and ensure any pre-sale or development approvals are in place before ownership or use-rights can change hands.
Real estate matters can be complex and have significant financial and legal consequences. You may need a lawyer when you are buying or selling property, negotiating a lease, dealing with a developer on a pre-sale contract, arranging financing or a mortgage, resolving boundary or title disputes, or enforcing contract terms after a breach. Lawyers help with due diligence, drafting and negotiating clear contract terms, calculating tax liabilities, handling registration and mortgage filings, advising on regulatory approvals, and representing you in mediation, arbitration or court when disputes arise.
Key legal principles and local procedures to know in Xiamen include the following.
Ownership and land-use rights - Under Chinese law, land is owned by the state or collectives. Individuals and entities obtain land-use rights for specified terms. Residential land-use terms are typically granted for 70 years, commercial and other uses usually have shorter terms. Xiamen follows national rules on the grant and transfer of land-use rights and on the registration of real estate rights.
Real estate registration - Transfers of ownership or land-use rights take legal effect only after registration at the local real estate registration authority. The consolidated real estate title certificate (unified property certificate) evidences ownership or other rights and must be checked in any transaction.
Pre-sale rules and developer obligations - Developers must obtain building permits and a commercial housing pre-sale permit before selling off-plan units. Municipal authorities in Xiamen supervise pre-sale practices and require developers to meet conditions for delivery, completion acceptance and handover standards.
Contract formality - Real estate contracts should be in writing and clearly identify the parties, the property, price, payment schedule, deposit, conditions precedent, delivery standards, deadlines and remedies for breach. The Civil Code governs contract formation, performance, breach and damages.
Taxes and fees - Typical taxes and charges include deed tax, value-added tax or its conversion surcharge in certain transactions, stamp duty and registration fees. Local Xiamen tax office rules determine specific rates and allocation of liabilities between buyer and seller.
Mortgages and encumbrances - Mortgages and other encumbrances must be registered to affect third parties. Buyers must verify that a property is free of undisclosed mortgages, seizures, or other rights that would block transfer.
Dispute resolution - Common dispute resolution paths include negotiation, administrative mediation via housing management or natural resources bureaus, arbitration (if a clause is included) and litigation in the local people’s courts.
Verify the unified real estate title certificate, the land-use right documents, building completion acceptance certificate, pre-sale permit for new properties, identification of all registered owners, any mortgage or seizure records, and the developer's company registration and construction permits. Also check recent property tax, utilities and property management fee records.
Yes. For sale and lease of real estate, written contracts are essential to record key terms and are required for registration and enforcement. Oral agreements are difficult to enforce for real estate and do not satisfy registration requirements.
Foreign individuals and entities face additional rules. In general, foreign natural persons must meet certain residency or work-study criteria and obtain municipal approvals. Foreign-invested enterprises and foreign nationals should check Xiamen-specific implementation rules and seek legal assistance to confirm eligibility and approval procedures.
Buyers should confirm the developer has a valid pre-sale permit and that funds collected are handled according to escrow or deposit rules. Contracts should specify delivery standards, timeline, penalties for delayed delivery, and rights to remedies if the developer fails to complete the project. Local regulators supervise developer conduct and may mediate disputes.
Price negotiation covers the total purchase price, payment schedule, deposit amount, and conditions for price adjustment in special cases. Use due diligence findings to negotiate price - for example unresolved liens, defects or incomplete permits can justify lower price or stronger protective contract clauses. Ensure all negotiated terms are in writing.
Common costs include deed tax, value-added tax or related taxes for certain sellers, stamp duty on contracts and registration fees for transferring the title or registering a mortgage. Specific rates can vary by property type, ownership duration, and local policy in Xiamen, so get a tax estimate from the tax authority or a lawyer early in negotiations.
If the seller’s mortgage is not released, the property cannot be effectively transferred until the mortgage is paid off and the mortgage registration is cancelled. Typical practice is to require the seller to clear the mortgage before closing or to arrange for the buyer’s lender to handle discharge as part of the settlement process. Always confirm the removal of encumbrances in the registration certificate.
Request proof of the developer’s compliance with pre-sale rules, review how buyer funds are held, confirm construction progress reports, and include clear contract remedies and escrow arrangements. Consider performance securities, bank guarantees or insurance if available. A lawyer can draft conditional clauses that permit recovery or cancellation if the developer becomes insolvent.
Negotiate deposit amount and refund conditions, payment milestones, completion and handover standards, fixtures and fittings included, defects liability period, liquidated damages for delay or breach, responsibilities for taxes and fees, dispute resolution mechanism and conditions for contract termination.
Timing depends on transaction complexity, presence of encumbrances and completeness of documents. Once the contract is signed, registration procedures with tax and the real estate registration center often take several weeks to a few months. If a mortgage is involved, bank procedures can add time. Proper preparation and lawyer assistance help shorten delays.
To research and verify requirements consult local administrative bodies and organizations that oversee real estate in Xiamen. Useful public bodies include the Xiamen Municipal Bureau of Natural Resources and Planning, the Xiamen Real Estate Registration administrative authority, the Xiamen Housing Security and Management Bureau, and the Xiamen Taxation Bureau. For dispute resolution, the local people’s courts and recognized arbitration institutions operate in the region. Professional help is available from licensed real estate lawyers and the local lawyers’ association, as well as from reputable licensed real estate agencies and the municipal real estate industry associations for market and regulatory insights.
If you need legal assistance in Xiamen, follow these steps to protect your interests.
Step 1 - Gather basic documents: bring identification, the preliminary contract or listing, any seller or developer documents, and records of payments or communications.
Step 2 - Seek an initial consultation with a local real estate lawyer who is licensed in China and familiar with Xiamen practice. Ask for a written engagement letter that states scope, fees and estimated timeline.
Step 3 - Hire the lawyer to perform due diligence - title search, check for mortgages and encumbrances, verify developer permits, assess tax exposure and draft or review the contract.
Step 4 - Use contract negotiation to lock in protective terms - clear payment schedule, conditions precedent, escrow or bank-handling of funds, handover criteria and remedies for breach.
Step 5 - Complete tax filings and registration with the real estate registration authority at closing so the change of ownership or mortgage is properly recorded.
Step 6 - Keep records of all contracts, receipts and registration certificates. If disputes arise, immediately instruct your lawyer to preserve evidence and to pursue negotiation, mediation, arbitration or litigation as appropriate.
Real estate transactions in Xiamen combine national legal principles with municipal practice and administrative steps. Working with a local lawyer reduces risk, helps navigate registration and tax procedures, and increases the chances of a smooth closing.
