The Interpretation of the Supreme People’s Court on the Application of the Property Rights of the Civil Code of the People’s Republic of China (1) was adopted at the 1825th meeting of the Judicial Committee of the Supreme People’s Court on December 25, 2020, and is hereby promulgated, starting from January 2021 It will be implemented on the 1st.
Supreme People's Court
December 29, 2020
Law Interpretation (2020) No. 24
The Supreme People's Court on the Application of the "Civil Code of the People's Republic of China"
Interpretation of property rights (1)
(December 25, 2020, the Judicial Committee of the Supreme People's Court
Adopted at the 1825th meeting, effective from January 1, 2021)
In order to correctly hear cases of property rights disputes, this interpretation is formulated in accordance with the "Civil Code of the People's Republic of China" and other relevant laws and regulations, combined with trial practice.
Article 1 Disputes arising from the ownership of real property rights and the sale, donation, mortgage, etc., which are the basis for the registration of real property rights, should be accepted in accordance with the law if the parties initiate a civil lawsuit. The parties have applied for the settlement of the above-mentioned civil disputes in the administrative litigation, unless the people's court hears them together.
Article 2 If the party has evidence to prove that the record in the real estate register is inconsistent with the real right status, and that he is the real right holder of the real property right, it shall be supported if he requests confirmation of the real right.
Article 3 After the objection registration is invalidated due to the reasons stipulated in Article 220, paragraph 2 of the Civil Code, if the party initiates a civil lawsuit requesting confirmation of the ownership of the property right, it shall be accepted in accordance with the law. The invalidation of objection registration does not affect the substantive trial of the case by the people's court.
Article 4 Any transfer of real property ownership or other property rights, or establishment of other property rights such as construction land use rights, residence rights, easements, mortgage rights, etc., without the consent of the right holder registered in advance, shall be in accordance with the Civil Code 220 Article 1 stipulates that it has no effect of real right.
Article 5 Where the advance-announcement registration agreement for the sale of real property rights is deemed invalid or cancelled, or the advance-announcement registration obligee waives the creditor’s rights, it shall be deemed as the “wiring of the creditor’s rights” as referred to in Article 221, paragraph 2, of the Civil Code. ".
Article 6 The transferor transfers the ownership of ships, aircraft, motor vehicles, etc., and the transferee has paid a reasonable price and obtained possession. Although it has not been registered, the creditors of the transferor claim that it is referred to in Article 225 of the Civil Code "A third party in good faith" shall not be supported, unless otherwise provided by law.
Article 7: Judgments, awards, and mediations made by the people’s courts and arbitration institutions in cases involving the division of shared real estate or movable properties that are effective in accordance with the law to change the original property relationship, as well as the auction transaction rulings made by the people’s courts in the enforcement procedures The ruling of the sale transaction and the ruling of repayment of debts shall be recognized as the legal documents of the people’s courts or arbitration institutions that lead to the establishment, modification, transfer or elimination of property rights as mentioned in Article 229 of the Civil Code.
Article 8: A right holder who enjoys property rights in accordance with Articles 229 to 231 of the Civil Code but has not yet completed the delivery of movable property or registration of real property shall be subject to Articles 235 to Article 235 of the Civil Code. The provisions of Article 238 shall be supported if the property rights are requested to be protected.
Article 9 When the subject of the rights of the co-ownership changes due to inheritance, bequest, etc., other co-owners in the co-owner's claim for priority purchase shall not be supported, unless otherwise agreed between the co-owners of the co-owner.
The "equal conditions" mentioned in Article 305 of the Civil Code shall be determined based on factors such as the transfer price of the joint share, the method of payment and the time limit.
Article 11 During the exercise of the right of first refusal, if there is an agreement between the co-owners according to the shares, it shall be handled in accordance with the agreement; if there is no agreement or the agreement is unclear, it shall be determined according to the following circumstances:
(1) If the notice containing the same conditions issued by the transferor to the other co-owners of the shares specifies the period of exercise, the period shall prevail;
(2) If the notice does not specify the period of exercise, or the specified period is shorter than fifteen days from the date of service of the notice, it shall be fifteen days;
(3) If the assignor has not notified, it shall be 15 days from the date when the other co-owners know or should know the final equivalent conditions;
(4) If the transferor fails to notify and cannot confirm that other co-owners know or should know the final equivalent conditions, it shall be six months from the date of transfer of the ownership of the joint share.
Article 12 A share-based co-owner transfers his share to a person other than the co-owner, and other share-based co-owners request priority purchase of the joint share under the same conditions in accordance with the law and judicial interpretation, and shall be supported. The request of other co-owners in one of the following circumstances shall not be supported:
(1) It does not claim priority purchase within the period specified in Article 11 of this Interpretation, or although it claims priority purchase, it proposes to reduce the transfer price, increase the assignor's burden and other substantive changes;
(2) On the grounds of infringement of its pre-emption right, it only requested the cancellation of the joint share transfer contract or the invalidation of the contract.
Article 13 The transfer of joint shares between co-owners in shares and other joint owners who claim priority to purchase in accordance with the provisions of Article 305 of the Civil Code shall not be supported, unless otherwise agreed between the joint owners .
Article 14 If the transferee does not know that the transferor has no right of disposal and no major negligence when the transferee transfers real or movable property, the transferee shall be deemed in good faith.
If the true right holder claims that the transferee does not constitute good faith, he shall bear the burden of proof.
Article 15 Under any of the following circumstances, it shall be determined that the real estate transferee knows that the transferor has no right of disposal:
(1) There is a valid objection registration in the register;
(2) Within the validity period of the advance notice registration, without the consent of the right holder of the advance notice registration;
(3) The registration book has recorded the relevant matters that the judicial organ or the administrative organ has ruled or decided to seal up or restrict the rights of real estate in other ways in accordance with the law;
(4) The transferee knows that the subject of right recorded in the register is wrong;
(5) The transferee knows that others have enjoyed real estate rights in accordance with the law.
If the real right holder has evidence to prove that the transferee of the real property should know that the transferor has no right of disposition, it should be determined that the transferee is at fault.
Article 16 When the transferee transfers the movable property, if the object, place, or timing of the transaction does not conform to the trading habits, the transferee shall be deemed to have committed gross negligence.
Article 17 of the Civil Code, Article 311, paragraph 1, "when the transferee transfers the real property or movable property" refers to the time when the real property right transfer registration or movable property is completed in accordance with the law.
Where the party delivers the movable property in the manner prescribed in Article 226 of the Civil Code, the time when the civil legal act of transferring movable property becomes effective is the time when the movable property is delivered; if the party delivers the movable property in the manner prescribed in Article 227 of the Civil Code, the transfer The movable property is delivered when the agreement between the transferee and the transferee concerning the transfer of the right to claim for the return of the restored property becomes effective.
Where the law provides otherwise for the establishment of real property or movable property rights, it shall be determined whether the right holder is in good faith according to the time specified by the law.
Article 18 The "reasonable price" referred to in Article 311 of the Civil Code, paragraph 1, item 2, shall be based on the nature, quantity, and payment method of the subject matter of the transfer, with reference to the market price at the place of transfer at the time of the transfer. And comprehensive identification of factors such as trading habits.
Article 19 Where the assignor delivers to the assignee the ships, aircraft, and motor vehicles specified in Article 225 of the Civil Code, it shall be deemed to comply with Article 311, Paragraph 1, Item 3 of the Civil Code. The stipulated conditions of good faith acquisition.
Article 20: In any of the following circumstances, the transferee's claim that the ownership shall be obtained in accordance with the provisions of Article 311 of the Civil Code shall not be supported:
(1) The assignment contract is determined to be invalid;
(2) The assignment contract was revoked.
Article 21 This interpretation shall come into effect on January 1, 2021.