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. It is hereby promulgated, effective January 2021 It will be implemented on the 1st.

Supreme People's Court

December 29, 2020

Law Interpretation (2020) No. 24

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

(Adopted at the 1825th meeting of the Judicial Committee of the Supreme People's Court on December 25, 2020, and implemented on 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 Where a dispute arises due to the ownership of real property rights, and the sale, gift, mortgage, etc., which are the basis for the registration of real property rights, and the parties initiate a civil lawsuit, it shall be accepted according to law. 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 state of real rights, and that he is the real right holder of the real property right, it shall be supported if he requests confirmation of his property right.

Article 3 After the objection registration is invalidated due to the reasons specified in Article 220, paragraph 2 of the Civil Code, if the parties file a civil lawsuit requesting confirmation of the ownership of the property rights, it shall be accepted according to law. The invalidation of objection registration does not affect the substantive trial of the case by the people's court.

Article 4 The transfer of real property ownership or other real rights, or the establishment of other real 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 According to the first paragraph of Article 1, it is determined that it has no effect of property rights.

Article 5 Where the advance-announcement registration agreement for the sale of real estate rights is deemed invalid or revoked, or the obligee of advance-announcement registration waives the creditor’s rights, it shall be deemed as the “wiring of the creditor’s rights” as mentioned in Article 221 of the Civil Code. ".

Article 6 The assignor transfers the ownership of ships, aircraft, motor vehicles, etc., and the assignee has paid a reasonable price and obtained possession. Although it has not been registered, the assignor’s creditors claim that it is referred to in Article 225 of the Civil Code The "good faith third party" 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 property or movable properties that are effective in accordance with law to change the original property relationship, as well as the auction transaction ruling made by the people’s court in the execution procedure , The ruling on the sale transaction and the ruling on the settlement 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 based on Articles 235 to Article 235 of the Civil Code. The provisions of Article 238 shall be supported if they request protection of their property rights.

 Article 9 When the subject of the rights of the co-ownership changes due to inheritance, bequest, etc., if other co-owners claim priority to purchase, it shall not be supported, unless otherwise agreed between the co-owners.

Article 10 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 among the co-owners, 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 content of the same conditions issued by the transferor to the other co-owners of the shares specifies the exercise period, the period shall prevail;

 (2) If the notice does not specify the period of exercise, or the specified period is shorter than 15 days from the date of service of the notice, it shall be 15 days;

 (3) If the assignor fails to notify, 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 determine 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 shares.

 Article 12 If 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, they shall be supported. The request of other co-owners in one of the following circumstances shall not be supported:

 (1) Not claiming priority purchase within the period specified in Article 11 of this Interpretation, or claiming priority purchase, but requesting substantive changes such as reducing the transfer price and increasing the assignor's burden;

 (2) On the grounds of infringement of its pre-emption right, only requesting the cancellation of the joint share transfer contract or the invalidation of the contract.

 Article 13 The transfer of joint shares between share-based co-owners and other share-based co-owners who claim priority to purchase in accordance with 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 to dispose of the transfer of real property or movable property and has no gross negligence, 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 In any of the following circumstances, it shall be determined that the transferee of real property 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 advance-announcement registration, without the consent of the right holder of advance-announcement 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;

(4) The transferee knows that the subject of rights recorded in the register is wrong;

(5) The transferee knows that others have enjoyed real estate rights in accordance with the law.

If the true 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 was grossly negligent.

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 The term "at the time the transferee transfers the real property or movable property" as mentioned in the first paragraph of Article 311 of the Civil Code refers to the time when the real property right transfer registration or movable property is delivered in accordance with the law.

If 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 takes effect 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 date of delivery of the movable property is when the agreement between the transferee and the transferee concerning the right to transfer the request for the return of the restored property becomes effective.

Where the law provides otherwise for the establishment of real property and movable property rights, it shall be determined whether the right holder is in good faith according to the time prescribed by the law.

Article 18 The "reasonable price" mentioned 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, and refer to the market price of the transaction place 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 found to comply with Article 311, Paragraph 1, Item 3 of the Civil Code The stipulated conditions of good faith acquisition.

Article 20 Under any of the following circumstances, the transferee's claim to acquire the ownership in accordance with Article 311 of the Civil Code shall not be supported:

(1) The assignment contract is deemed invalid;

(2) The transfer contract is cancelled.

Article 21 This interpretation shall come into effect on January 1, 2021.