China's top legislature amended a real estate management law Thursday, allowing the government to expropriate institutional and private houses on state-owned land for public interests.

The Standing Committee of the National People's Congress (NPC) voted at its legislative session that ended on Thursday to add one clause to the General Principles of the Law on the Management of Urban Real Estate, which allows the expropriation for public interests while demanding compensation to owners.

The new clause also underscores that the legal rights of the owners must be protected and residence conditions of private owners after resettlement must be guaranteed.

The top legislature authorized the State Council, or the cabinet, to make administrative regulations on such expropriation to ensure the smooth implementation of the Property Law that was enacted in March and is to go into force on October 1.

Currently, there is no law defining the rights and procedure for the expropriation of institutional and private real estate, while the existing "Provisions on the Management on the Removal of Urban Houses" issued by the State Council in 2001 is not accordant with the Property Law.

The amendment conforms with the First Clause of the 42nd Article of the Property Law, which says land belonging to institutions and houses and other real estate belonging to institutions and individuals can be expropriated for public interests, within the limits of rights and procedure defined by law.