The Law on Land Contract in Rural Areas was promulgated in 2002 and amended in 2009 and 2018 respectively. The latest revision entered into force on January 1, 2019.

There are 70 articles in total.

The key points are as follows:

1.Who owns rural land?

The rural land ownership belongs to the rural community where the land is located. The aforesaid rural community refers to the collective economic organization in rural areas.

2.Who can obtain the right to land contractual management?

The members of the rural community (i.e. “members of the collective economic organization in rural areas” as mentioned in the Law) can be granted the right to land contractual management in the form of contracting by households. (Article 5)

The right to land contractual management on the arable land, forestland, grassland, etc. can only be granted to rural community members. Other people outside of the rural community can obtain the right to land contractual management on the barren mountains, ditches, hills, beaches, etc. (Article 3)

3.What can you do on the land upon obtaining the right to land contractual management?

You can organize agriculture production on the land and dispose agricultural products at your discretion. However, you shall not use the land for any purpose other than agriculture or cause permanent damage to the land. (Article 18)

You can exchange the right to land contractual management with other rural community members, or assign your right to land contractual management to others. If the land is requisitioned by the government, you can also obtain compensation. (Article 17)

4.How long is the effective term for the right to land contractual management?

The effective term for arable land is thirty (30) years, for grassland thirty (30) to fifty (50) years, and for forestland thirty (30) to seventy (70) years. The right to land contractual management may be extended for another same period upon the expiry of the effective term. (Article 21)