According to the classification of land use, land can be divided into three categories: construction land, agricultural land and unused land. China implements a land use control system to restrict the conversion of agricultural land and unused land into construction land. Agricultural land and unused land need to be approved for conversion into construction land. According to the Rural Land Contract Law of People's Republic of China (PRC), farmland, woodland and grassland owned by farmers collectively and owned by the state and used by farmers collectively according to law, as well as other land used for agriculture according to law, are contracted to farmers by rural collective economic organizations, but the contracted land may not be used for non-agricultural construction without legal approval. According to the Land Management Law, collective land can be used for three types of construction, namely, land for township enterprises, land for villagers' homesteads, and land for village (town) public facilities and public welfare undertakings. However, the land use right collectively owned by farmers shall not be sold, transferred or leased for non-agricultural construction. In other words, the transfer and assignment of farmers' homestead is illegal, and its trading behavior is not protected by law.
Legal basis: Article 4 of the Land Administration Law of the People's Republic of China, the state practices a land use control system. The state formulates the overall land use planning, defines the land use, and divides the land into agricultural land, construction land and unused land. Strictly restrict the conversion of agricultural land into construction land, control the total amount of construction land, and implement special protection for cultivated land. The agricultural land mentioned in the preceding paragraph refers to the land directly used for agricultural production, including cultivated land, woodland, grassland, farmland water conservancy land and aquaculture water surface. Construction land refers to the land for building buildings and structures, including urban and rural residential and public facilities, industrial and mining land, transportation and water conservancy facilities, tourism land and military facilities; Unused land refers to land other than agricultural land and construction land. Units and individuals using land must use the land in strict accordance with the purposes determined in the overall land use planning.