Article 2 Defined in these rules, disputes over property rights transaction refer to conflicts or disputes arising when one party involved in or a third party with interest in the property rights transaction activities conducted by a property rights transaction organization believes that the other party, other relevant parties or the property rights transaction organization have violated market rules or disrupted the normal trade and infringed upon their legitimate rights and interests.
Defined in these rules, the applicant refers to the parties to the transaction or other relevant entities that apply for mediation and conflict resolution on disputes over property rights transaction. The party that the dispute is pointing to is the respondent.
Article 3 These rules are applicable when the applicant files a mediation request to the property rights transaction organization or the supervising institution of property rights transaction organizations on the ground that the respondent’s behaviors in property rights transaction activities conducted by a property rights transaction organization have violated relevant rules and regulations or have infringed upon their legitimate rights and interests. Dispute issues impacting the proceeding of the transaction project should be terminated or the transaction project should be terminated.
Article 4 The mediation of disputes over property rights transaction should follow relevant laws, rules, regulations and the market rules of property rights transaction, and be based on the principles of fairness, justice and voluntary application by the applicant.
Article 5 The property rights transaction organization is the main mediation body of disputes over property rights transaction. It accepts and hears the applicant’s mediation request, investigates and verifies the dispute issue, and mediates the dispute issue in accordance with these rules.
Cases where mediation requests are applicable include:
1. Disputes over the content of released information, transaction procedures, the determination of the transferee, and the trading methods, etc;
2. Disputes over the violation of laws and regulations on the part of the other party;
3. Disputes over infringement on the legitimate rights and interests of the applicant due to intentional failure to act or wrongful act on the part of the other party;
4. Other disputes the property rights transaction organization considers admissible.
Article 6 The supervising institution of the property rights transaction organization supervises the mediation of disputes by the property rights transaction organization, accepts and hears cases involving disputes over the mediation by the property rights transaction organization or mediation requests files by the property rights transaction organization as the applicant, investigates and verifies relevant situations, and mediates the dispute issues in accordance with these rules.
Article 7 When the applicant is the transferor or the intended transferee, it shall entrust a broker member to file the mediation request; when the applicant is the creditor, employee or other relevant parties, it shall entrust a broker member or a law firm to file the mediation request. When the dispute mediation application is filed by an agency, the agency shall submit the applicant’s letter of authorization.
Article 8 Dispute mediation applications filed by the applicant should include the following materials:
1. Application form for the mediation of property rights transaction disputes, with clear indication of whether the mediation will be accepted;
2. Certifications of the applicant’s right as principal;
3. Relevant proofs about the dispute issues;
4. Other materials deemed necessary by the mediation body;
The applicant shall be responsible for the authenticity and validity of the submitted materials, and the agency shall verify and assume partial responsibility for the authenticity and validity of the submitted materials.
Article 9 The mediation body shall decide whether to accept or reject the application 3 working days upon receiving the application for mediation of property rights transaction disputes. If the application is rejected, reasons for the rejection shall be stated in the letter of decision.
Article 10 The mediation body shall facilitate the resolution of conflicts among relevant parties upon verifying the relevant materials submitted by the applicant and the relevant issues. If the dispute issue does not involve the interests of a third party, and both parties to the dispute accept the mediation, the mediation body may invite the disputing parties to reach a consensus through negotiation and form a mediation agreement signed and sealed by the two parties and the mediation body to complete the mediation procedure. The mediation procedure is usually completed within 30 days after the mediation application is accepted.
Article 11 The mediation agreement of dispute over property rights transaction shall include the following main elements:
1. The names, addresses, and legal representatives of the applicant and respondent;
2. The disputed issue and the request;
3. The procedure of investigation and verification, and the facts
4. The investigated and verified facts, evidence and related proofs;
5. The mediation suggestion
6. The two parties’ agreement to implement the mediation suggestion and accountability in case of breach of contract.
Article 12 When the mediation application for property rights transaction dispute is accepted and the two parties fail to reconciliate through mediation or do not accept the mediation, the mediation body shall identify the facts in the dispute and make suggestions according to market rules.
Article 13 In the process of mediation, the applicant and the respondent bear the burden of proof for their application and claim, including stating the facts without providing false supporting documents or concealing or fabricating evidence. The party that fails to provide relevant evidence in accordance with the requirements of the mediation body shall be held responsibility. If the applicant fails to provide evidence within the specified time, the mediation request shall be considered renounced.
Article 14 Interrupted transaction of property rights and economic losses on the part of the property rights transaction organization or other related parties in the trade resulting from violation of the relevant parties or refusal to implement the mediation suggestion by the applicant or the respondent, the relevant parties, applicant or respondent shall bear the liability of the economic losses.
If the erring party is the intended transferee that has paid the margin, the losses can be deducted from the margin;
If the erring party is the transferor that has not demanded a margin from the intended transferee, it shall bear the liability and pay the same amount as the requested margin.
Article 15 The property rights transaction organization shall implement the decisions made by its supervising institution on the mediation request it has received directly, and coordinate and properly handle the other relevant matters in the dispute over property rights transaction.
Article 16 The Rules take effect as from release.