Legal basis: Article 244 of the Civil Procedure Law of People's Republic of China (PRC). If the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to seal up, detain, freeze, auction or sell off the property that the person subjected to execution should perform. However, the necessities of life of the person subjected to execution and his dependents shall be retained.
Provisions of the Supreme People's Court on People's Courts Enforcing Mortgaged Houses Article 1 A people's court may seal up the houses that have been mortgaged according to law and, upon the application of the mortgagee, auction, sell off or pay off debts according to law.
Provisions of the Supreme People's Court on Several Issues Concerning the Execution of Work by People's Courts (for Trial Implementation) Article 40 The people's court may take measures of sealing up or detaining the property owned by the person subjected to execution that others enjoy the mortgage, pledge or lien. The proceeds from the auction or sale of property shall be used to pay off the creditor's rights of the applicant executor after the mortgagee, pledgee or lien holder have priority in compensation.