In China, they can demolish a perfectly legal property with 90 days notice.

On the 91st day they will demolish the property if it was constructed post 1977 and the land registration rules will be brought in.

As the owner (or original settler) of the land/property, you will be compensated a minimum of 1.36 times and maximum of 3.5 times what the property cost you.

OR

You will be given between 0.76 times to 1.8 times the land equivalent as compensation within a radius of 20 Kms of where you live

It’s 90% Money now and very few cases are compensated with equivalent land

The Compensation is IMMEDIATE and before the demolition notice

This means you get the money before you have to vacate your property

The entire money, tax free minus 25% which will be paid to the bank towards any mortgage you may have borrowed or whatever you owe the bank, whichever is lesser

So if my 2 Million RMB condo built in 2019 is demolished, I will get

2 Million * (0.93)* 1.78 = 3.31 Million RMB

If I owe the bank 1 Million RMB, then 827,700 RMB will be paid towards that loan

Law for Illegal Encroachment

Illegal properties are impossible in China post 2017 because every property is placed within a satellite grid with its own boundary as of 30/06/2017

From that day onwards, any encroachment can be settled in ten minutes with a simple satellite image as on 30/06/2017 and a resolution run which can show any encroachment

For Pre 2017 properties, any illegal encroachment will never be blamed on the purchasers of the property

Unlike India

Why?

Again Simple

The State verifies the property for you if it’s residential

You pay the fee, submit your escrow details where you prove you deposited the 15% down payment on the property and the State will examine all the history (Now digitized) and issue a clearance of the property and it’s legality

No more paper for properties purchased since 2010 except older deeds

So since the State clears legalities, the State will be responsible for mistakes and the State will compensate

The State HAS TO COMPENSATE within 60 days Or place the equivalent of what you paid for the property in Escrow in your name and take another 120 days to confirm legality or pay the money to you

Plus while I ain’t sure, I can pretty much say I strongly feel the officials will be taken to task for such a mistake

One thing in China – the Common man never suffers much

The laws and system are made for the common man rather than Plutocrats or a bunch of Rich Lawyers sitting in the Capital or a bunch of Illiterate politicians