mortgaged real estate needs to be sold by auction， the newly-built houses on the land may be auctioned off according to law together with the mortgaged assets. However， the mortgagee shall not have the priority in compensation with respect to the funds obtained from auction of the newly-built houses.

　　Section 4 Lease of Houses

　　Article 52 Lease of houses refers to acts that an owner of a house in the capacity of a leaser leases his house to a lea see for use and the lea see pays rent for the house to the leaser.

　　Article 53 In the lease of a house， the leaser and the lea see shall conclude a written lease contract defining such matters as the term， purpose， and price of the lease， liability for repair， as well as other rights and obligations of both parties， and shall register the lease with the department of housing administration for the record.

　　Article 54 Lease of residential houses shall be carried out in accordance with policies on lease formulated by the State and the people's government of the city where the houses are located. Where houses are leased for activities of production and business operation， the rent and other terms for the lease shall be determined by both parties through consultation.

　　Article 55 Where an owner of a house， for profit-making purposes， leases the house built on the State-owned land， the land-use right for which is obtained by mode of allocation， he shall turn over to the State the proceeds derived from the land and contained in the rent. The specific measures shall be prescribed by the State Council.

　　Section 5 Intermediary Service Agencies

　　Article 56 Intermediary service agencies for real estate include real estate consultant agencies， real estate price appraisal agencies and real estate broking agencies.

　　Article 57 Intermediary service agencies for real estate shall meet the following conditions：

　　1. to have names and institutional structures of their own；

　　2. to have fixed premises to provide services；

　　3. to have necessary property and funds；

　　4. to have sufficient professional personnel； and

　　5. other conditions provided by laws， administrative rules and regulations.

　　For establishing an intermediary service agency for real estate， an application for registration of the establishment shall be submitted to the administrative department for industry and commerce and a business licence shall be obtained， before it starts its business.

　　Article 58 The State shall practise a qualification authentication system for real estate price appraisers.

　　Chapter V Administration of Real Estate Ownership Registration

　　Article 59 The State shall practise a system of registration and certification for land-use right and ownership of houses.

　　Article 60 Where the land-use right is obtained by mode of granting or allocation， an application for registration shall be submitted to the department of land administration under the local people's government at or above the county level. Upon verification by the department of land a

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