1. If the debtor sells the collateral and the mortgagee is unaware of it, the transfer is invalid, and the creditor may require the debtor to pay off the debt in advance or provide a new guarantee.
2. Legal provisions: Civil Code of People's Republic of China (PRC).
Article 406? During the mortgage period, the mortgagor may transfer the mortgaged property. Unless otherwise agreed by the parties, such agreement shall prevail. If the mortgaged property is transferred, the mortgage right will not be affected.
Where the mortgagor transfers the mortgaged property, it shall promptly notify the mortgagee. If the mortgagee can prove that the transfer of the mortgaged property may damage the mortgage right, he may require the mortgagor to pay off the debt or deposit the proceeds of the transfer in advance with the mortgagee. The part of the transfer price exceeding the amount of creditor's rights belongs to the mortgagor, and the insufficient part is paid off by the debtor.
When signing the house sales agreement:
In fact, we can find out whether the house has been mortgaged first. Because the homeowner is worried that there will be no buyer during the mortgage period, he will generally hide the real situation of the house, but the most direct way is to look at the real estate license and land certificate, and ask the homeowner to show the real estate license to know whether the house is mortgaged.
If the house is mortgaged, the title certificate shall be stamped with the mortgage seal. In addition, if the house is mortgaged, the title certificate may exist in the bank, so if the owner is unwilling or unable to provide the property certificate and land certificate, then the house is likely to be mortgaged.