Regulations on Sale and Lease of New Town Lands Through Tendering

2021-06-04
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Article 1
The Regulations are enacted pursuant to Paragraph 6, Article 8 of the New Town Development Act (hereinafter referred to as "the Act").
Article 2
The so-called "new town lands" refers to the construction lands that may be sold or leased through tendering according to Subparagraph 5, Paragraph 1, Article 8 of the Act.
Article 3
To handle the sale or lease of lands through tendering, the authority shall give a public announcement in advance, and the public announcement shall include the following contents:
1. References.
2. Land description and area.
3. Land use zoning and use control.
4. Time limit for land development and construction as well as a minimum degree of construction and utilization.
5. Lease term.
6. Qualification for bidding.
7. Time for accepting investment plan and bidding.
8. Base price for sale or lease through tendering.
9. Amount of antecedent money for bidding, performance bond, and the superficies premium.
10. Time and address for receiving Attention for Bidding and Bidding Bill.
11. Necessary documents for bidding.
12. Date, time, and place for the opening of bids.
13. Time limit for payment of purchase price, rent, and option money of superficies rights.
14. Method and time limit for delivery of lands.
15. Other necessary information.
The announcement in the preceding paragraph shall be posted on the bulletin boards of the competent authority and the municipality, county (city) government and township (town, city, district) office where the bid or lease land is located, and it shall be published on the competent authority and the municipality where the bid or lease land is located. County (city) government websites and government bulletins, from the announcement date to the date of acceptance of the investment plan application shall not be less than 30 days.
Article 4
For the sale of new town lands through tendering, the antecedent money for bidding shall be not less than 10% of the minimum sale price; for lease through tendering, the antecedent money for bidding shall be calculated according to the base price for renting.
Article 5
The minimum price of the annual rent of a piece of new town land to be leased through tendering calculated on the basis of one-thousandth to five-thousandths of the market value of the land estimated by the real estate appraiser entrusted by the competent authority. Unless the project is approved by the central authority or recognized by the Executive Yuan as an important investment plan for the necessity to meet the severe change of economic environment or the requirements for introducing industries favorable for the development of new towns.
Article 6
Each successful bidder of leased lands shall pay the rent and the shortage of performance bond within the time limit prescribed in the contract according to the actual bidding amount.
The above-mentioned rent shall be adjusted yearly with the urban land price indexes.
The annual amount of rent payable for the winner of the land-bidding shall be not less than annual land value tax payable during the rental period.
Article 7
For the lands leased through tendering under this Regulation, the authority may levy option money of superficies premium according to the factors such as objectives of land development, term of the lease, the minimum price for lease, the prosperity of real estate market, experiences of the lease through tendering in ambient areas, etc.
The above-mentioned amounts of superficies premium may not be less than 30% of the assessed market price of the land appraised by the real estate appraiser entrusted by the competent authority.
Article 8
After bid awarding of a piece of the new town land, the antecedent money for bidding of the successful bidder will not be refunded, and will just be used as a part of the purchase price, rent, or performance bond. In case the successful bidder abandons the rights, the authority will not refund the antecedent money for bidding, and may sell or lease the land through tendering once again.
Article 9
After bid awarding of a piece of the new town land, the antecedent money for bidding of the unsuccessful bidders will be refunded without interest on the spot. But for those bidders who quote a bidding price lower than the minimum price announced for sale or lease through tendering, the antecedent money for bidding will not be refunded.
Article 10
When handling sale or lease through tendering under this Regulation, in case that nobody bids or the tendering fails twice, the authority shall appropriately reduce the minimum price and then execute sale or lease through tendering again, but the reduction may not exceed 20%.
When handling sale or lease through tendering again under the above paragraph, in case that nobody bids or the tendering fails again, the authority shall reduce the re-announced minimum price by up to 20%, and then carry out the sale or lease through tendering once again. In case that nobody bids or the tendering fails, the authority shall review and adjust the use zoning and use control of this land, and then execute a sale or lease through tendering again according to Paragraph 4, Article 8 of the Act and this Regulation.
Article 11
The successful bidder of a piece of land sold through tendering shall sign a sale and purchase contract with the authority within 30 days after winning the bid, and the contract will include the following contents:
1. The two parties concerned.
2. Land description and area.
3. Purchase price and payment method of the land.
4. Method for making up for the deficiency of the purchase price.
5. Restrictions on the use of the land.
6. Method for delivery of the land and occasion for ownership transfer.
7. Method for burdening tax and stipulated fees.
8. Events of default and punishment.
9. Specially agreed affairs.
Where the successful bidder doesn't sign the contract within the time limit without consent of the authority, it will be regarded as abandonment of the bid, and the antecedent money for bidding will not be refunded.
Article 12
For a piece of land sold through tendering under Subparagraph 5, Paragraph 1, Article 8 of the Act, the successful bidder shall pay off the purchase price within the time limit prescribed by the authority. In case the successful bidder has described a payment plan in the investment plan as mentioned in Paragraph 1, Article 16 of the Act, and the plan has been approved by the authority, the purchase price may be paid according to the approved payment plan.
Article 13
Where the purchaser pays the purchase price according to the payment plan and time limit described in the investment plan, and the proportion already paid has reached 30% of the total amount payable or more, the purchaser may apply for using the land in advance.
Where the purchaser applies for using the land in advance, royalty fees for using in advance shall be paid, and a letter of commitment for paying the land royalty fee year after year shall be enclosed in the application.
The above-mentioned royalty fee is calculated yearly according to the amount of land purchase price payable but not paid by the purchaser as well as the bank loan interest rate of the New Town Development Foundation.
Article 14
After the purchaser has paid off the purchase price, the following provisions shall govern:
1. Where the cadastre of the land has been collated, the authority shall provide the documents required for application for registration within 30 days commencing from paying-off the land purchase price, for the purchaser together with the competent authority to apply for land ownership transfer registration; the authority shall deliver the land in the current conditions and prepare the delivery record, and the land area shall be calculated according to the area recorded in the land register.
2. Where the cadastre of the land has not been collated, the authority shall grant the letter of consent for land-use right within 30 days commencing from paying-off the land purchase price, for the purchaser to apply for related certificates and permits. The authority shall deliver the land in the current conditions and prepare the delivery record. After the collation of the cadastre is finished, the authority shall provide the documents required for application for registration, for the purchaser together with the authority to apply for land ownership transfer registration.
For a piece of land for which the transfer registration of land ownership is handled under the above paragraph, in case the area recorded in the land register is not in conformity with that announced for sale, a refund for overpayment or supplemental payment for the deficiency shall be executed without interest in proportion according to the area difference between the two and the successful bidding price within 3 months commencing from completion of registration.
The expenses for the transfer registration of land ownership mentioned in the first paragraph as well as other correlative expenses shall be assumed by the purchaser.
Article 15
For a piece of land leased through tendering, the successful bidder shall sign a lease contract with the authority within 30 days commencing from awarding of the bid, and the contract shall include the following contents:
1. The two parties concerned.
2. Land description and area.
3. Lease term.
4. Registration on use of the land.
5. Amount of rent, method, and the time limit of payment.
6. Amount, payment method and time limit of the option money of superficies rights.
7. Method for adjustment of rent.
8. Disposal of failure to pay the rent according to the contract.
9. Method for adjustment and refund of performance bond.
10. Method for return of the land and disposal of the over-ground articles upon expiration of the lease term.
11. Guarantor and the joint and several guarantee liabilities.
12. Events of default and penal provisions.
13. Specially agreed affairs.
After the lease contract is signed, the two parties shall finish the notarization procedure at the governing court at the location of the leased land. The authority shall deliver the land in current conditions, and prepare the delivery record. At the request of the lessee, the authority shall cooperate with the lessee in the verification of land borderline. The area of the leased land shall employ the area recorded in the land register. In case the area recorded in the land register is not in conformity with the actual area, the rent shall also be calculated according to the original bidding rent, and the lessee may not request a refund or supplementary payment.
The expense for the above-mentioned notarization and verification of land borderline as well as other correlative expenses shall be assumed by the lessee.
Article 16
At the same time when signing the lease contract under the above article, the successful bidder of a piece of land leased through tendering shall also sign a superficies rights setting contract. The lessee may apply for superficies rights setting registration jointly with the authority, and the expenses for the aforesaid registration shall be undertaken by the lessee.
The continued existence period of the above-mentioned superficies rights may not exceed the lease term.
Article 17
Where a successful bidder doesn't pay the land purchase price, royalty fee for using the land in advance, rent, or option money of superficies rights according to this Regulation, and still doesn't pay after the authority gives written hastening notice twice, it will be disposed of as a breach of the contract. The authority shall give written notice to notify the purchaser or lessee to remove the goods and facilities on the land purchased or rented through bidding. In case the bidder doesn't remove the aforesaid goods and facilities within the time limit, it will be regarded as abandonment of the ownership of the facilities and above-ground goods, the right to use the land, and the right to purchase or rent the land, and the purchase price, rent and option money already paid will not be refunded.
Article 18
The formats of letters and forms referred to in this Regulation shall be determined by the authority.
Article 19
This Regulation will take effect since it is promulgated.