According to Article 38 of the Law of the People's Republic of China on the Administration of Urban Real Estate, houses that have not been registered and received ownership certificates in accordance with the law shall not be transferred. However, this does not mean that all unlicensed property transfers are invalid.
In practice, the court usually holds that although Article 38 of the Urban Real Estate Management Law of the People's Republic of China clearly states that real estate that has not been registered and obtained a certificate of ownership in accordance with the law shall not be transferred. However, this provision is only a principled administrative regulation established in the process of housing transactions to maintain the security of transactions. Its essence is not to completely negate and prohibit transactions, but to regulate the administrative order in housing transactions. In addition, this prohibition does not belong to the mandatory provisions of validity that can lead to the invalidity of the contract as stipulated in the Judicial Interpretation II of the Contract Law.
The contract for the transfer of unlicensed real estate shall be deemed valid if it meets the requirements for validity prescribed by law. For example, if the seller is in actual possession of the house after purchasing the house and has a de facto right to dispose of the house, then the transfer of the house will not be affected even if there is no title deed.
However, although the transfer of unlicensed properties is legally valid, in practice, buyers need to be cautious. Because the transfer of unlicensed real estate may have a greater risk of disputes. For example, if the seller repents for various reasons after the ** house, it may lead to a series of legal disputes.
Therefore, when transferring an unlicensed property, the buyer should fully understand the situation of the property and ensure that his rights and interests are protected. At the same time, it is also possible to seek the help of a legal professional to prevent unnecessary legal risks. How to transfer unlicensed property effectively