These regulations are prescribed pursuant to paragraph 2 of Article 22 of the Government Procurement Act (hereinafter referred to as the “Act”).
The open solicitation by an entity for real property in a designated area, where the procurement value reaches the threshold for publication, shall be conducted in accordance with these regulations.
An entity conducting procurement of real property in a designated area shall first prepare a plan and submit for approval by higher authorities as required.
The plan referred to in the preceding paragraph shall include the reason for and the necessity of procuring real property and designating an area; the plan shall also include, in reference to government’s official price or assessed price, and actual trading cases in the neighborhood or other credit reference information, a detailed estimation of procurement amount and its benefits.
The following procurement by an entity of real property of a value reaching the threshold for publication may be exempted from the requirement to conduct an open solicitation:
1. the procurement of adjacent real property or deformed land which is intended for combination with the existing real property to suit business needs;
2. the procurement under the circumstances prescribed in subparagraphs 2, 3, 7, or 8 of paragraph 1 of Article 22 of the Act; and
3. other circumstances as prescribed by the responsible entity.
An entity conducting an open solicitation for real property shall publish a notice on the Government Procurement Gazette and also make it available on the information network.
The documentation for open solicitation of real property by an entity may, unless otherwise provided by laws or regulations, depending on the characteristics and actual needs of the individual case, specify the following items:
1. required conditions of the real property, including area, width of roadway out-front, transport condition, land use zoning and other relevant conditions; the required area may be specified by discretion as a flexible range;
2. designated area, the reason for and necessity of such designation;
3. documents to be submitted by a supplier, such as copy of certificate of real property ownership, rough location map, transcript of cadastral map, transcript of land registration book, transcript of building registration book, urban planning overlaying map, result map of building survey, certificate of land use zoning, copy of occupancy license, statement of present use condition, sale or lease agreement or other relevant information;
4. a supplier shall indicate in the application documents the real property’s land description, land category, area, building site location, doorplate number, each floor’s lawful use area and total area;
5. a supplier shall indicate in application documents the real property’s unit price and total price for sale or lease; the total price of building and land shall be listed separately; where additional compensation fees exist, their contents and values shall be itemized;
6. documents to be submitted by a supplier at field inspection;
7. principles of inspection, evaluation and selection;
8. transfer registration and terms of payment: after the seller transfers real property ownership to the buyer and the buyer acquires the certificate of real property ownership, the buyer shall pay a portion of the contract value as required by the contract; upon satisfactory inspection and acceptance, the buyer shall, in accordance with the area stated in the certificate of real property ownership after transfer and the contract requirements, make payment for the remaining contract value; however, this provision shall not apply if the solicitation documentation has prescribed otherwise;
9. the time-limit to hand over the land, the building, or other subject matters;
10. responsibility of taxes and fees: the seller shall be responsible for the land value increment tax and all taxes for the periods prior to transfer of property ownership, including land value tax, house tax, construction benefit fee, as well as the fee for revision survey and division in land trading; the tax for acquisition of real property shall be the responsibility of the buyer; the fee for registration of change in property ownership shall be the responsibility of both the seller and the buyer as prescribed by laws and regulations; however, this provision shall not apply if the solicitation documentation has prescribed otherwise;
11. the entrusting of a real estate agent and the responsibility of the fees thereof;
12. in case of rental and property ownership disputes, occupation by a third party or other registered rights, the seller shall be responsible for settlement and pay for any fees incurred;
13. the seller shall, unless otherwise specified in the solicitation documentation, clear or abandon the objects on the ground, including buildings, agricultural buildings, cemeteries and any other objects attached objects on the ground; where additional compensation fees exist, the applying supplier shall indicate the item and the amount thereof item by item;
14. application for change of use: where the land being considered for procurement requires change of use, an entity may, depending upon the need of the individual case, state in the solicitation documentation that such matter shall be handled according to one of the following circumstances:
(1) a sale and purchase contract is signed first, and until after the provincial (municipal) or county (city) government approves of the division, transfer and change of use, the registration for transfer of property ownership is then undertaken according to the contract; however, the contract shall provide that, in case the provincial (municipal) or county (city) government does not approve, the contract shall be rescinded; or
(2) a sale and purchase contract is not signed until after the provincial (municipal) or county (city) government approves of the division, transfer and change of use; and
15. any other matters as necessary.
Where an entity establishes a government estimate for procurement of real property, the determination of the government estimate shall take into account such circumstances as actual selling and buying cases in that area in the recent time, government’s announced prices, evaluated prices or tendered sale prices, the fluctuation trend of real estate prices, and local industrial and business prosperity cycles.
The government estimate referred to in the preceding paragraph may be determined after the suppliers matching the requirements has been determined in accordance with Article 10.
Any supplier responding to a solicitation of real property shall be either the owner of a real property or his or her entrusted agent. In the case of an agent, the agent shall, prior to award of contract, submit a notarized or certified letter of entrustment from the owner. However, for leased property where the subject of lease is of joint ownership, relevant laws or regulations shall apply.
Where a supplier’s documents are reviewed as qualified, the entity shall conduct a field inspection.
In the field inspection referred to in the preceding paragraph, an entity may, depending upon the characteristics and actual needs of the individual case, select the following items, proceed to collect and verify relevant information, and come up with an inspection record; where necessary, photographs may also be taken for proof purpose.
1. Land-related items:
(1) In accordance with the land number and the transcripts of cadastral map and land registration book of the applicant’s land, verification is conducted with regard to information such as land section, land number, land category, grade of land productivity, land use zoning (for urban planning zone) or regional planning use zoning (for non-urban planning zone), floor area ratio, limit of building coverage ratio, etc.
(2) In accordance with the transcript of cadastral map, inquiry is made at the building management department of the local county (city) government in order to check the status of urban planning and whether there is any planned land use scheme for roadways, schools, parks or other public facilities that locates in the land under consideration. Where the land is not in an urban planning zone, investigation is made into whether there is any regulation imposing land use restrictions such as prohibition of construction, prohibition of use, limitation of construction, etc.
(3) Information regarding the condition of the environment surrounding the applicant’s land, whether there is any facility that can pose an impact on the quality of use and its distance, the distance to railways or major highways, and whether the conditions of external transportation, noise or pollution will contradict the requirements, etc.
(4) Whether the topography, terrain, location and area of the applicant’s land match the planned use. Conditions such as the widths of the roadway out-front at present and after the planned widening and whether it will pose inconvenience for or interfere with people, vehicles and materials that need to enter and exit, the in and out of the underground pipelines, etc.
(5) The types of objects on the ground (such as houses, illegal constructions, fruit trees, rice and other crops, high-voltage wires, cross-over poles and wires, etc.) and underground facilities (such as electricity and communication facilities, oil pipes, tap water pipes, underground ducts, underground transport systems, and other pipelines) inside the applicant’s land and whether these will pose any impact on land use.
(6) Investigation is made into whether there is any unregistered land, deformed land, irrigation and drainage land, drainage gutter, existing roadway, etc. inside the applicant’s land and whether it is difficult to make changes in the future.
(7) Whether water and electricity supplies, telecommunication facilities, drainage facilities and waste disposal facilities are in good condition.
2. Building-related items:
(1) Area of the building, structure type and doorplate number.
(2) Year and month of completion, building’s present condition and occupancy conditions.
(3) Conditions of ancillary constructions.
(4) Architectural design drawings (including drawings for plumbing, electrical and related ancillary works) or layout plans.
3. Property ownership-related items:
(1) A letter of consent by holder of the right shall be acquired regardless of whether the real property is held in the forms of sole, separate or joint ownership. However, where the matter is conducted in accordance with the requirements of the Act on Apartment Buildings Management, this provision shall not apply.
(2) Where the property is held under lease or provided as a guarantee or the right of usufruct by way of the creation of any pawn right, mortgage right, easement, servitude right, etc., the renouncement of the right by the lessee, other property right holders or first purchasing right holders shall be acquired along with a written confirmation.
(3) Where the property is under ownership dispute or has been in occupation by a third party, unless settlement by the supplier within a time-limit is agreed upon by the entity, it shall not be accepted.
(4) Where the land is acquired under the land-to-the-tiller policy, the lease holder shall pay off the land price; where the land is acquired under the 37.5% rental reduction policy, the lessor shall present proof of approved revocation of the lease agreement or make a promise to submit such proof before signing the sales and purchase contract.
(5) A checking is made by referring to the transcript of building registration book and the occupancy license with regard to whether the building is legal and whether there is any special restriction on its use.
4. Price-related items:
(1) A checking is made at the land administration entity with regard to the announced land value and the latest issue of announced current land value.
(2) Research on market prices: inquiries are made at land administration offices, administrative offices of townships, cities and districts, revenue service offices, real estate brokers, real estate agents or entities in charge of managing public properties, with regard to real estate trading cases in the neighborhood or general market prices.
(3) The construction cost of the building is analyzed basing on its structure, and the information on trading prices for buildings in the same section of the area bearing the same structure collected as far as possible.
5. Drawings-related items:
(1) Applications are made to relevant authorities for urban planning maps of the related areas.
(2) A topographic plan of the land being considered for procurement is drawn with the length and width dimension of the land indicated. Where divided lands exist in the same land number, their locations shall be indicated; where there are objects on the ground, such as buildings, their layout shall be marked; where the land is located in an urban planning zone, the urban planning map of the neighboring area shall be attached; where the land is located in a non-urban planning zone, the conditions of adjacent roadways shall be indicated.
(3) A building layout plan is drawn as necessary, showing the entire site of the applicant’s building, building location and the location and widths of the surrounding roadways.
(4) Building’s floor plans are drawn as necessary, using a proportional scale to show the dimensions and locations of rooms (including stairways and bathrooms) and the arrangement of facilities.
Upon completion of field inspection, an entity shall, in accordance with suppliers’ application documents and inspection records, determine the suppliers that match the requirements by considering real property condition, transport condition, environmental sanitary, price, development potential, existence of present or potential disputes, benefit analysis, etc.
The provisions set out in the Act with regard to evaluation of the most advantageous tender shall apply mutatis mutandis to determining the suppliers that match the requirements referred to in the preceding paragraph.
The price negotiation and awarding of contract between an entity and the suppliers being determined as matching the requirements shall be undertaken in accordance with one of the following approaches, and this shall be specified in the solicitation documentation:
1. where there is only one supplier matching the requirements, price negotiation shall be undertaken directly;
2. where there are two or more suppliers matching the requirements, price negotiation shall, based on a ranking of fitness of the requirements, be conducted starting from the supplier that most matches the requirements and following the ranking order. However, where two or more suppliers are granted the same ranking, the one with the lowest tender price shall be given the priority for price negotiation.
Where the applicant’s real property is prohibited by laws or regulations or is not feasible to make a change of use to suit needs, it shall not be accepted.
An entity conducting price negotiation or other negotiations in accordance with these regulations shall require the supplier’s representative to bring the identification card, registered seal, original copy of proof of property ownership and any other relevant documents and to attend in person or by entrusting an agent.
These regulations shall take effect from the date of promulgation.
In case of discrepancies between the Chinese version and this English version, the Chinese version shall prevail.