According to Article 25 of China's Regulations on Expropriation and Compensation of Houses on State-owned Land, the house expropriation department and the expropriated person shall, in accordance with the provisions of this Ordinance, conclude a compensation agreement on matters such as compensation mode, compensation amount and payment period, location and area of property rights exchange houses, relocation expenses, temporary resettlement expenses or turnover houses, loss of production or business suspension, relocation period, transition mode and transition period.

Demolition houses are houses built by the government to resettle the residents who have been demolished when carrying out urban road construction and other public facilities construction projects. The object of resettlement is the relocated households of urban residents, including farmers who have taken land for demolition. With the further acceleration of urban construction and development, it is urgent for the government to build as many resettlement houses as possible to meet the needs of relocated households.