The Provisions of the Supreme People's Court on Several Issues concerning the Determination of the Reference Prices for Disposition of Property by the People's Courts, which were adopted at the 1741st Session of the Judicial Committee of the Supreme People’s Court on June 4, 2018, are hereby promulgated and shall take effect as of September 1, 2018.

Supreme People’s Court

August 28, 2018

Provisions of the Supreme People's Court on Several Issues concerning the Determination of the Reference Prices for Disposition of Property by the People's Courts

(Adopted at the 1741st Session of the Judicial Committee of the Supreme People’s Court on June 4, 2018, and effective as of September 1, 2018)

To determine the reference prices for disposition of property in a fair, impartial and efficient manner, and protect the lawful rights and interests of the parties and interested parties, Provisions of the Supreme People's Court on Several Issues concerning the Determination of the Reference Prices for Disposition of Property by the People's Courts (hereinafter referred to as "the Provisions") is developed according to the provisions of the Civil Procedure Law of the People's Republic of China and other laws, and in consideration of the work of the people's courts.

Article 1 After the seizure, detaining, and freezing of the property, a people's court shall, within 30 days, launch the procedures for determining the reference price for disposition of property to be auctioned or sold.

Article 2 The people’s court may determine the reference price of property, and it will dispose of by different means, such as negotiating with the party concerned over the price, making inquiries about the price with a specific party, making inquiries about the price on the Internet or commissioning an agency to appraise the property.

Article 3 Before determining the reference price, a people’s court shall ascertain the status quo of ownership, encumbrance, possession and use, unpaid taxes and fees, quality defects, etc.

Where it is necessary for the purpose of ascertaining the matters prescribed in the preceding paragraph, the people's court may notify a party, relevant entity or individual to provide relevant materials; where the party, relevant entity or individual refuses to do so, the people’s court may obtain relevant materials compulsorily; where compulsory obtaining is obstructed, it shall be handled, mutatis mutandis to, the provisions of Articles 111 and 114 of the Civil Procedure Law of the People’s Republic of China.

Where it is necessary to conduct audit and authentication for the purpose of ascertaining any matter prescribed in Paragraph 1 of this Article, the people's court may do so in advance.

Article 4 Where the reference price is determined by negotiating with the parties concerned, the people's court shall notify or organize the parties concerned in a proper manner to conduct negotiation and the parties concerned shall submit the negotiated price within the designated time limit, unless a party concerned refuses to negotiate the price or its whereabouts is unknown.

Where the negotiated price submitted by each party concerned is consistent with that submitted by the other party, and the proposed price does not impair the lawful rights and interests of others, such price shall be the reference price.

Article 5 Where negotiation between the parties concerned fails or it is impossible to conduct the negotiation, and there is a taxable benchmark price, government pricing or government-guided price for the property concerned, the people's court shall make inquiries about the price with the relevant authority at the place where the property is located, when it determines the reference price.

Where both parties concerned agree on direct inquiries about the price in a targeted manner, and there is a taxable benchmark price, government pricing or government-guided price for the property concerned, the people's court shall permit such direct inquiries.

Article 6 Where the reference price is determined by making inquiries about the price with a specific party, the people's court shall issue a letter of inquiry to the specific party, which shall specify the request of inquiry, the deadline for completion, and other contents.

The inquiry result issued by the specific party which accepts the price inquiry within the prescribed time limit shall be the reference price.

Article 7 Where making inquiries about the price with a specific party fails or is impossible, the property does not need to be inspected or appraised by professional personnel on site, and the conditions for online inquiry are met, the people’s court shall conduct online inquiry through the judicial online inquiry platform.

Where both parties concerned agree on or consent to direct inquiries about the price on the Internet and the property does not need to be inspected or appraised by professional personnel on site, the people's court shall approve the proposed online price inquiry, if the conditions for such online price inquiry permit.

Article 8 The Supreme People’s Court establishes a national list library of judicial online inquiry platforms.

A judicial online inquiry platform shall concurrently meet the following conditions:

i. Having the qualifications of providing Internet information services according to law;

ii. Being able to legally obtain and integrate not less than three types of price data, such as previous transaction prices, government pricing, government-guided price or open transaction price on the market of a same type of property within a certain period of time in all regions across China, and guarantee the authenticity and accuracy of the data;

iii. Being able to analyze the previous transaction prices and transaction trends on the market by using certain operational rules according to the characteristics of the digitized property;

iv. Having procedures operated in a regulated manner, and a safe and efficient system, and providing high-quality and low-price services; and

v. Being able to completely record the data analysis process, and keeping the formed electronic data completely for not less than 10 years, unless otherwise prescribed by the laws, administrative regulations, and judicial interpretations.

Article 9 The Supreme People’s Court shall form a special review committee to be responsible for selection, review and delisting of judicial online inquiry platforms. Each year, an authoritative third party shall be introduced to review the judicial online inquiry platforms that have been incorporated into the list and that file new applications for being incorporated into the list and announce the results.

If a judicial online inquiry platform has one of the following conditions, it shall be removed from the list:

i. Refusing to conduct online inquiry without justifiable reasons;

ii. Failing to complete online inquiry on time for 5 times accumulatively within a year without justified reasons;

iii. Having malicious collusion, practicing fraud, disclosing confidential information, or otherwise;

iv. Being determined by an authoritative third party upon review to be unqualified for providing online inquiry services; or

v. Falling under any other circumstance in violation of the inquiry rules or the provisions of the laws, administrative regulations, or judicial interpretations.

vi. A delisted judicial online inquiry platform may not be included in the list within 5 years.

Article 10 Where the reference price is determined by means of online inquiry, the people's court shall concurrently issue powers of attorney letter for online inquiry to all judicial online inquiry platforms in the list. A power of attorney letter for online inquiry shall specify the property's name, physical characteristics, specifications and quantity, purpose and requirements, deadlines for completion, and other contents that need to be specified.

Article 11 A judicial online inquiry platform shall, within 3 days of the receipt of a power of attorney letter of a people's court for online inquiry, issue an online inquiry report. An online inquiry report shall specify the property's basic conditions, reference sample, calculation method, inquiry result, validity period and other contents.

If a judicial online inquiry platform cannot complete inquiry within the prescribed time limit, it shall apply for an extension before the expiry of the time limit. Where all judicial online inquiry platforms fail to issue the inquiry results within the prescribed time limit, the people's court shall, according to the applications of all judicial online inquiry platforms for extension, extend to 3 days; and where some judicial online inquiry platforms issue online inquiry results within the prescribed time limit, the people's court shall not approve the applications of other judicial online inquiry platforms for the requests for extension.

Where all judicial online inquiry platforms fail to issue or supplement and correct the online inquiry reports within the prescribed time limit and do not apply for extension according to the provisions, the people's court shall entrust an assessment institution to conduct assessment.

Where the people’s court fails to issue an auction announcement for the first auction within the validity period of the online inquiry result or directly enters the sales period, it shall notify the judicial online inquiry platform of re-issuing an online inquiry report within 3 days.

Article 12 The people’s court shall examine the online inquiry reports. Where the online inquiry reports all have mistakes in the basic information on the property, exceed the scope of the property, have omissions of the property, or otherwise, the people's court shall notify the judicial online inquiry platforms of making supplements and corrections within 3 days, and where some online inquiry reports do not fall under the aforesaid circumstances, the people’s court is not required to notify other judicial online inquiry platforms of making supplements and corrections.

Article 13 Where all judicial online inquiry platforms issue the inquiry results or supplement and correction results within the prescribed time limit, the people’s court shall use the average value of the results issued by all judicial online inquiry platforms as the reference price; and where some judicial online inquiry platforms issue the inquiry results or supplement and correction results within the prescribed time limit, the people's court shall use the average value of the results issued by these judicial online inquiry platforms as the reference price.

Where a party or interested party raise objections to all online inquiry reports according to the provisions of Article 22 of the Provisions, and the objections raised are rejected or the judicial online inquiry platforms have made supplements and corrections, the people's court shall use the average value of the results issued by all judicial online inquiry platforms to which the objections are rejected or that have made supplements and corrections as the reference price; and where objections are raised to some online inquiry reports, the people's court shall use the average value of the results issued by all judicial online inquiry platforms whose online inquiry reports have not been subject to any objection as the reference price.

Article 14 Where it is required by the laws and administrative regulations or agreed upon by both parties to commission an agency to appraise the property, or online inquiry is impracticable or fails, the people’s court shall commission an agency to appraise the property.

Article 15 The Supreme People's Court shall establish a list of judicial assessment institutions of the people's courts according to the list of assessment institutions recommended by the national appraisal industry association. According to the professional field of assessment and the practicing scope of the assessment institutions, sub-lists at the provincial and municipal level shall be established under the branch list on the basis of the administrative divisions.

Where an assessment institution refuses to conduct judicial assessment or practices fraud or otherwise without justified reason, the Supreme People’s Court may, upon consultation with the national appraisal industry association, remove it from the list; and it shall not be included in the list within 5 years thereafter.

Article 16 Where the reference price is determined by commissioning an appraising agency to evaluate the property concerned, the people's court may notify both parties concerned to select and prioritize 3 appraising agencies through consultation within the designated time limit from the branch list; where the consultation of both parties concerned fails within the designated time limit or the whereabouts of one party is unknown, three appraising agencies shall be selected at random by lottery from the branch list or the sub-list of the place where the property is situated and prioritized. Where both parties concerned agree to select them at random from a sub-list, the people's court shall permit the same.

Article 17 The people’s court shall issue a power of attorney letter for assessment to the assessment institution with the prior order. The power of attorney letter shall specify the property's name, physical characteristics, specifications and quantity, purpose and requirements, deadlines for completion, and other contents that need to be specified. Moreover, the people’s court shall deliver to the assessment institution the situation of the property ascertained and relevant materials.

The assessment institution shall issue an assessment report, which shall specify the property's basic conditions, assessment method, assessment standards, assessment results, validity period, etc.

Article 18 Where it is necessary to conduct on-site inspection, the people’s court shall inform the parties to be present; and where the parties fail to be present, the inspection shall not be affected, provided that there shall be witnesses. Where the on-site inspection requires the cooperation of the parties and the assisting obligors, the people’s court shall order them to cooperate according to law; and where they fail to cooperate, they may be forced to do so according to the law.

Article 19 An assessment institution shall issue an assessment report within 30 days. The period that the people's court decides to postpone or rules to suspend enforcement shall be deducted from the aforementioned time limit.

If an assessment institution cannot issue an assessment report within the prescribed time limit, it shall apply in writing to the people’s court for an extension five days before the expiry of the time limit. Where the people's court decides to extend the time limit, the number of extensions shall not exceed two, and each extension shall not exceed 15 days.

Where an assessment institution fails to issue or supplement and correct the assessment report within the prescribed time limit and fails to apply for extension according to the provisions, the people's court shall inform the assessment institution to return the above-mentioned assessment materials within 3 days, and entrust the assessment institution in the next order to conduct assessment.

Where the people’s court fails to issue an auction announcement for the first auction within the validity period of the online inquiry result or directly enters the sales period, it shall inform the original assessment institution to re-issue an assessment report within 15 days.

Article 20 The people’s court shall examine the assessment report. Under any of the following circumstances, the people’s court shall order the assessment institution to make written explanation or supplements and corrections within 3 days:

i. The basic information on the property is wrong;

ii. The scope of the property is exceeded, or any property is omitted;

iii. The selected assessment institution is inconsistent with the assessment institution affixing the seal to the assessment report;

iv. The qualification certificates of the assessors are inconsistent with the persons signing the assessment report; or

v. Any other circumstance under which written explanation or supplements and corrections shall be made.

Article 21 The people’s court shall, within 3 days after receiving the reports on making inquiries about the price with a specific party, making inquiries about the price on the Internet, commissioning an agency to appraise the property, written explanation or supplements and corrections or otherwise, send them to the parties and interested parties.

Where the parties and interested parties have provided valid addresses for service of process, the people's court shall serve the reports by direct service, service of process by retention, service of process by entrustment, service of process by mail or electronic service of process; and where the present whereabouts of the parties and interested parties are unknown or their valid addresses for service of process are unavailable, and the people's court is unable to serve reports according to the aforesaid provisions, the people's court shall publish them on the China Enforcement Information Online website (http://zxgk.court.gov.cn/), and they shall be deemed having been received after being published for 15 days.

Article 22 Where a party or interested party deems that an online inquiry report or assessment report falls upon any of the following circumstances, they may raise a written objection within 5 days upon receipt of the report:

i. The basic information on the property is wrong;

ii. The scope of the property is exceeded, or any property is omitted;

iii. The assessment institution or assessor does not have the corresponding qualifications; or

iv. The assessment procedures seriously violate the law.

Any written objection raised by a party or interested party according to the preceding paragraph shall be handled by the people’s court with reference to Article 225 of the Civil Procedure Law of the People’s Republic of China.

Article 23 Where a party or interested party raises a written objection against the reference standard, calculation method or assessment result of an assessment report within 5 days after receiving an assessment report, the people's court shall deliver it to the assessment institution within 3 days for making written explanations. Where an assessment institution fails to make explanations within 5 days or a party or interested party still has an objection to the explanations made, the people's court shall deliver it to the relevant industry association for organizing professional technical assessment within the prescribed time limit, and determine the assessment results according to the conclusions made through professional technical assessment or order the original assessment institution to make supplements and corrections.

Where a party or interested party raises an objection prescribed in the preceding paragraph and any circumstance specified in items (1) and (2) of Paragraph 1 of Article 22 is concurrently involved, the objection shall be handled according to the provisions of the preceding paragraph; where any circumstance specified in items (3) and (4) of Paragraph 1 of Article 22 is concurrently involved, the circumstances specified in items (3) and (4) shall be reviewed first according to Paragraph 2 of Article 22 of the Provisions, and where the objection is well-founded, the people’s court shall inform the assessment institution to return assessment materials, and entrust an assessment institution in the next order re-conduct assessment; and where an objection is not tenable, it shall be handled according to the provisions of the preceding paragraph.

Article 24 Where a party or interested party does not raise any objection within the period prescribed in Articles 22 and 23 of the Provisions or raises an objection to the explanations for supplements and corrections, and professional technical assessment conclusions made by an online inquiry platform, assessment institution or industry association according to Articles 22 and 23 of the Provisions, the people's court shall not accept it.

Where a party or interested party raises an objection to a bargaining or inquiring about the price with a specific party, the people’s court shall not accept it.

Article 25 Where a party or interested party has evidence to prove that he or she falls under one of the following circumstances and raises objection before the issuance of an auction announcement for the first auction or directly entering the sales period, the people's court shall conduct review under the enforcement supervision procedures:

i. Fraud or coercion exists in the bargaining;

ii. The interest of any third party is harmed by malicious collusion;

iii. The relevant institution issues false results of inquiring about the price with a specific party; or

iv. The result of handling according to Articles 22 and 23 of the Provisions are indeed erroneous.

Article 26 Where a party or interested party does not raise any objection to any assessment report, the objection raised is rejected, or the assessment institution has made supplements and corrections, the people's court shall use the assessment result or supplement and correction result as the reference price; and where the objection raised by a party or interested party to an assessment report is well-founded, the people's court shall use the supplement and correction result issued by the assessment institution or the assessment result re-issued as the reference price. Where a professional technical assessor has not made any negative conclusion on the assessment report, the people's court shall use the assessment result as the reference price.

Article 27 The judicial online inquiry platforms and assessment institutions shall determine the validity period of online inquiry or entrusted assessment result, which shall not exceed one year.

With respect to negotiating with the party concerned over the price, the parties shall negotiate with each other to determine the validity period of the negotiating results, provided that the term prescribed in the preceding paragraph may not be exceeded; with respect to making inquiries about the price with a specific party, the validity period of the inquiry results shall be determined with reference to the provisions of the preceding paragraph.

Where a people's court issues an auction announcement for the first auction within the validity period of the bargaining, inquiry or assessment result or directly enters the sales period, and the validity period has not been expired for 6 months at the time of auction or sale, the reference price is not required to be re-determined, unless otherwise prescribed by the laws, administrative regulations or judicial interpretations.

Article 28 Under one of the following circumstances, the people's court shall decide to postpone the online inquiry or entrusted assessment:

i. The enforcement of the case is postponed or suspended;

ii. The assessment materials are seriously inconsistent with the facts, may affect the assessment results and need to be re-investigated and verified; or

iii. Any other circumstance under which the people's court deems that postponement is required.

Article 29 Under any of the following circumstances, the people's court shall withdraw the online inquiry or entrusted assessment:

i. The application operator withdraws the application for enforcement;

ii. The obligations determined in the valid legal instruments have been completely fulfilled;

iii. The valid legal instrument on which the enforcement is based is revoked or ruled not to be implemented; or

iv. Any other circumstance under which the people's court deems that withdrawal is required.

Where, after the people's court decides to conduct online inquiry or entrusted assessment, the two parties determine the reference price by negotiating or negotiate no longer to sell the property, the people's court may withdraw online inquiry or entrusted assessment.

Article 30 The people's court shall launch the procedures of sale of property within 10 days after the reference price is determined. For an auction, the starting price shall be determined with reference to the reference price; and for direct sale, the selling price shall be determined with reference to the reference price.

Article 31 Where the people's court entrusts a judicial online inquiry platform to conduct online inquiry, the online inquiry fees shall be calculated for and paid to the judicial online inquiry platform whose online inquiry result is the closest to the transaction price on a transaction-by-transaction basis; and where several judicial online inquiry platforms issue identical online inquiry results or have the same difference with the transaction price, the online inquiry fees shall be evenly distributed.

Where the people's court entrusts an assessment institution to conduct assessment in accordance with Paragraph 3 of Article 11 of the Provisions or withdraws online inquiry in accordance with Article 29 of the Provisions, no fees shall be calculated for or paid to the judicial online inquiry platform.

Article 32 Where a people's court entrusts an assessment institution to conduct assessment, and disposition of property has not been completed, the fees shall be calculated and paid according to the rational actual expenditures of the assessment institution; where the transaction price is higher than the assessment price, fees shall be calculated and paid on the basis of the assessment price; and where the transaction price is lower than the assessment price, fees shall be calculated and paid on the basis of the transaction price.

Where the people's court withdraws the entrusted assessment in accordance with Article 29 of the Provisions, fees shall be calculated and paid according to the rational actual expenditures of the assessment institution; and where the people's court informs the original assessment institution to re-issue an assessment report according to the Provisions, fees shall be calculated and paid according to 30% of the amount prescribed in the preceding Paragraph.

Where the people's court entrusts another assessment institution to conduct re-assessment in accordance with the Provisions, no fees shall be calculated for or paid to the original assessment institution.

Article 33 The online inquiry fees and the entrusted assessment fees shall be prepaid by the application operator and be assumed by the person subject to enforcement.

Where an application operator prepays the online inquiry fees or entrusted assessment fees by signing an insurance contract, the insurer shall issue a letter of guarantee to the people's court. The letter of guarantee shall specify that the application operator has not prepaid the online inquiry fees or entrusted assessment fees and the said fees will be paid by the insurer, etc., and affix the relevant supporting materials.

Article 34 The Supreme People's Court shall establish a National Court Inquiry Evaluation System. The Inquiry Evaluation System shall be connected with the systems of the targeted inquiry institutions, judicial online inquiry platforms, and national appraisal industry association, to share data.

The Inquiry Evaluation System shall have the functions of recording the bargaining by parties, targeted inquiry, online inquiry, entrusted assessment, and lottery process, among others, form fixed data, and keep them for a long time with the cases for future reference.

Article 35 The Provisions shall come into force as of September 1, 2018.

Where any judicial interpretations or regulatory documents previously issued by the Supreme People's Court are inconsistent with the Provisions, the Provisions shall prevail.