There are risks.

Small-property houses refer to houses built on rural collective land for which land transfer fees and other fees have not been paid. Their property rights certificates are not issued by the national housing management department, but by the township government or village government. It is called "rural property housing". "Small property rights housing" is not a legal concept, but a customary term formed by people in social practice. This type of house does not have a land use certificate and pre-sale license issued by the state, and the purchase contract will not be registered with the Land and Housing Administration Bureau. The so-called property rights certificate is not a truly legal and valid property rights certificate.

The emergence of small-property houses is inseparable from the soaring housing prices in cities. They have become a hot topic of social concern since 2007, when housing prices rose rapidly. According to relevant national requirements, "small property rights housing" cannot be confirmed and issued a certificate, and is not protected by law.

Purchase risk

(1) Legal validity

The validity of the sales contract for "small property rights house" is generally deemed to be invalid. However, different situations are also distinguished:

For rural house sales that occur among members of rural collective economic organizations within the township, the house sales contract is deemed to be valid.

If the house is sold to a person outside the township, the contract can be deemed valid if it is approved by the relevant organization and department.

For the sale of a house to a person outside the township without the approval of the relevant organization and department, if the contract has not been actually performed or the buyer has not actually lived in and used the house, the contract shall be invalid.

(2) Real estate transfer

"Small property rights houses" cannot obtain a formal real estate certificate, so they do not constitute real property rights in the legal sense. That is, small-property houses only have the right to use, but not ownership. [2]

Houses with small property rights (2 photos)

According to the provisions of the "Land Management Law of the People's Republic of China", houses with small property rights cannot be sold to non-members of the collective. Transfer or sale by a third party, that is, it cannot be legally transferred after purchase. It also has a certain impact on the preservation and appreciation of housing value.

(3) Policy risks

When purchasing a house with small property rights under construction, after the buyer signs a contract with the developer and pays the house payment, if the relevant departments rectify the construction project of rural property rights houses , which can lead to the suspension of construction or even forced demolition of some projects. Home buyers will face the embarrassing situation of being unable to obtain the house and not being able to claim their money back in time.

Cartoons related to small-property houses (2 photos)

If you encounter national land acquisition and demolition after purchasing a house, since rural-property houses do not have legal property rights recognized by the state, the buyer is not the legal property owner. , so the demolition compensation for property rights cannot be obtained, and the demolition compensation received by the actual user is negligible compared with the property rights compensation.

(4) Lack of supervision

There are no clear regulations to restrict the development and construction of houses with rural property rights. There is a lack of supervision of development and construction, which has a certain impact on the interests of home buyers. . At the same time, the development unit does not have the qualifications, and it is difficult to guarantee the quality of the house and the after-sales warranty of the house

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