Is the borrowed name purchase agreement legally valid?

Mondo Social Updated on 2024-01-30

Buying a house in a borrowed name refers to the act of the parties agreeing that one party will purchase the house in the name of another person, and the ownership of the house will be registered in the name of the other person, and the actual investor will enjoy the rights and interests of the house. The borrowed name sale and purchase agreement is the core element for determining the establishment of the borrowed name relationship, and the existence of the borrowed name sale and purchase agreement plays a very key role in determining whether the borrowed name sale and purchase relationship exists.

Netizen consultation:

Is the borrowed name purchase agreement legally valid?

Lawyer answers:

The borrowed name purchase agreement is a civil contract and shall comply with the relevant provisions of the Contract Section of the Civil Code. The borrowed name purchase agreement shall be the true expression of the intention of both parties and shall not violate the mandatory provisions of laws and administrative regulations in order to have legal effect. Affordable housing is a policy housing in order to solve the housing problem of specific groups, involving the public interest of the society, and the use of the borrowed name contract to make people who do not meet the specific conditions occupy a limited number of affordable housing will undoubtedly cause unreasonable distribution of social resources, which is immoral and seriously endangers the public interest, so the borrowed name contract is invalid in this case.

Lawyer adds:

Where a dispute arises over the ownership of real estate rights, as well as the sale, gift, mortgage, etc., which are the basis for the registration of real estate rights, and the parties initiate a civil lawsuit, it shall be accepted in accordance with law. Where a party has evidence to prove that the record in the immovable property register is inconsistent with the real right status, and that he is the real owner of the real right in the immovable property, and requests confirmation of his or her enjoyment of the real right, it shall be supported. For the borrower, in addition to the fact of capital contribution, the party claiming to buy the house in the borrowed name also needs to provide evidence to prove that there is an agreement between the parties to buy the house in the borrowed name, and the agreement to buy the house in the borrowed name does not violate the provisions of national laws and administrative regulations, and the court may make a judgment that the house is transferred to the name of the actual owner of the house if the agreement to buy the house in the borrowed name is legal and valid.

Legal basis] Civil Code of the People's Republic of China

Article 143:Civil juristic acts that meet the following requirements are valid:

1) The actor has the corresponding capacity for civil conduct;

b) The meaning is true;

3) Do not violate the mandatory provisions of laws and administrative regulations, and do not violate public order and good customs.

Interpretation of the Supreme People's Court on the Application of the Civil Code of the People's Republic of China on Property Rights (1).

Article 2 Where a party has evidence to prove that the record in the immovable property register is inconsistent with the real right status, and that it is the real owner of the real right of the immovable property, and requests confirmation of its enjoyment of the real right, it shall be supported.

Profile of lawyer Ye Jingyi

Graduated from 211 University with a major in law, focusing on real estate, corporate legal affairs, debt collection, and labor disputes.

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