The house with outstanding loan can be transferred, but the situation should be explained to the buyer when transferring. According to the provisions of Article 38 of the Urban Real Estate Management Law, the following real estates may not be transferred: (1) The land use right obtained by transfer does not meet the conditions stipulated in Article 39 of this Law; (two) the judicial organs and administrative organs have ruled or decided to seal up or restrict the real estate rights in other forms according to law; (three) to recover the land use right according to law; (four) without the written consent of other people, * * * owns real estate; (five) the ownership is controversial; (6) Failing to register according to law and obtaining the ownership certificate; (seven) other circumstances in which the transfer is prohibited by laws and administrative regulations.

Legal objectivity:

Article 406 of the Civil Code of People's Republic of China (PRC) * * * 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.