The provisional regulation on real estate registration, which comprises 35 articles, has recently taken effect. It is China’s first administrative regulation on real estate registration.

So, why has this regulation taken such a long time to be introduced? There are two main reasons. The first is that registration involves different administrative bodies, rather than a single one. The second is that it involves reform of the social governance system and protection of citizens’ right to privacy. If released information damages citizens’ interests, it will cause problems in society.

After deciding to establish the real estate registration system, the State Council firstly asked to set up a special bureau and set terms for protecting citizens’ right to privacy. Apart from stakeholders, no one has the right to look up information without permission. Judicial organs also cannot search information unless approval is granted. The regulation aims to better balance national, social and individual interests and minimize its negative influence.
 

Real estate registration is in itself a technical issue, but it is also a social issue in China, where the country has been transitioning from a closed society to an open one. There are many different interest groups involved, and some vested interest groups may prevent the formation and implementation of the regulation.

In some countries, the real estate registration system aims to make clear the fundamental rights of property deed holders and prevent information from being used for unwanted purposes. Unless judicial organs have an effective legal approval or the government considers property deed information is linked to national or public interests, no one can search and copy such information without a deed holder’s permission.

The establishment of a real estate registration system is a necessary measure for enhancing the efficiency and security of market transactions. It is conducive to improving the transparency of the society and facilitating the government’s formulation and implementation of macro-control policies. By analyzing related big data, the government can deeply understand the current situation of the real estate market and formulate sound plans for its future development. It is also convenient for judicial and supervisory organs to access such information. 
 

Following the regulation’s implementation, the bureau will inevitably collect and store a large amount of information. Meanwhile, it will face increasing inquiries from stakeholders. It should make full preparations and avoid becoming common targets. It is necessary to avoid registration becoming a mere formality. If some significant information is still closed, it will reduce transaction efficiency and increase transaction costs. This will result in damaging public benefits and individual legal interests.
 

The regulation requires an electronic real estate register to best facilitate inquiries. If the bureau regards itself as the body responsible for controlling information and is unwilling to share information in real time, the real estate registration system will struggle to uphold its primary function.

 

Qiao Xinsheng is a professor from the Law School at Zhongnan University of Economics and Law in Wuhan, Hubei Province.