Heartbreaking! The settlement housing bought for 450,000 yuan was not transferred in time, nearly resulting in the loss of both money and property

"Made me unable to sleep all night

Stayed in the hospital several times due to IV drips"

Dispute over resettlement housing

In 2010, in Wuxi, Jiangsu Province, Zhou Hongmei spent 450,000 yuan to buy a resettlement house from Shen Ming (pseudonym). Zhou Hongmei said that according to the policies at the time, the property rights certificate for the relocation housing could only be processed after five years. The two parties agreed to transfer ownership after the certificate was obtained, but Shen Ming then disappeared. In 2021, Zhou Hongmei was shocked to see a notice on her door from the Jiangsu Jingjiang People’s Court demanding her to vacate the house.

It turned out that seven years after selling the house to Zhou Hongmei, Shen Ming secretly obtained the property rights certificate and in 2019 mortgaged the house to Xiao Wu, borrowing 400,000 yuan at a monthly interest rate of 1.5%, with interest paid monthly. Xiao Wu believed that with the collateral, this deal was a guaranteed profit.

Unexpectedly, Xiao Wu did not receive the interest in the first month. After multiple reminders, Shen Ming repeatedly delayed and even disappeared completely. Xiao Wu then filed a lawsuit with the Jingjiang People’s Court. The court ordered Shen Ming to repay Xiao Wu the principal, interest, and other fees totaling over 510,000 yuan. It also ruled that Xiao Wu had priority rights to claim proceeds from the auction of the mortgaged house. After the judgment took effect, Shen Ming, burdened with debt, still did not fulfill his repayment obligations, so Xiao Wu applied to the court for enforcement.

Zhou Hongmei, who received the eviction notice, was anxious and angry. She sued to stop the enforcement against her house, requested confirmation that the house belonged to her, and asked to cancel Xiao Wu’s mortgage registration on the house. After the trial, the court found that Zhou Hongmei had not promptly transferred the property after purchasing the house and was at fault, so it dismissed all her claims.

Both parties made concessions and reached a settlement

On the advice of her lawyer, a reluctant Zhou Hongmei applied for civil supervision from the Jingjiang People’s Procuratorate. The prosecutor believed that this house was Zhou Hongmei’s only residence and involved her right to survival. Although Xiao Wu’s claim was legal and valid, this house did not directly affect his right to survival. Therefore, the procuratorate believed that Zhou Hongmei’s rights should be prioritized.

Subsequently, the Jingjiang People’s Court reopened the case and ultimately revoked the original judgment, dismissing Xiao Wu’s lawsuit. This outcome was obviously unacceptable to Xiao Wu. Eventually, through mediation, Zhou Hongmei and Xiao Wu each made concessions and reached a settlement agreement. Zhou Hongmei paid Xiao Wu 200,000 yuan, and Xiao Wu transferred the mortgage rights of the house to Zhou Hongmei. After a series of twists and turns, Zhou Hongmei, who finally obtained the property rights certificate, felt at ease.

Legal education time

Q:

In the process of urbanization across the country, many resettlement houses have been built, but disputes over their transactions often occur. So, what should you do when buying resettlement housing to avoid risks?

A:

The problem mainly arises with the resale of resettlement houses, that is, buying second-hand resettlement homes. In many cases, due to legal restrictions on their market entry, there is a certain period before the transfer of ownership can be completed. When buyers are eager to purchase, they pay the money but cannot complete the transfer procedures, leading to risks like in this case. So, what methods can be used? First, ask the seller to provide a guarantee; if you pay the price, they must offer a corresponding guarantee. Second, only pay part of the price initially, and the remaining amount is paid after the transfer is completed. Third, if the formal transfer registration cannot be completed at the time, both parties can sign a written agreement for pre-registration. After pre-registration, the seller cannot dispose of the property, transfer it, or mortgage it, thus protecting the buyer’s rights.

Source of the case | “Today’s Legal Talk” program “Dispute over Property Ownership”

Source: CCTV Today’s Legal Talk