Perspective | A Brief Analysis of the "Buyer's Property Expectation Right" in the Execution of Objections
Published:
2025-04-07
The prospective buyer's right to expect ownership is an important concept in law, primarily used to protect the legitimate rights and interests of real estate buyers before the completion of property registration. Its core lies in that when the buyer has fulfilled the main contractual obligations but has not yet obtained property registration, their rights can resist enforcement or other claims in certain specific situations.
The prospective property right of the buyer is an important concept in law, mainly used to protect the legitimate rights and interests of the buyer of real estate before the completion of property registration. Its core lies in that when the buyer has fulfilled the main contractual obligations but has not yet obtained property registration, his or her rights can resist the enforcement or other claims of rights under certain specific circumstances.
I. Brief Introduction of the Case
On September 25, 2021, Lan used a property under his name as collateral to obtain a loan of 2 million yuan from N Bank. Because he failed to repay the loan on time, and after repeated collection efforts failed, N Bank filed a lawsuit with the H Court in March 2023 to realize this mortgage right. After the court ruled in favor of N Bank, N Bank filed an application for compulsory execution with the court. During the execution process, Wang raised an objection to the execution, claiming that he and Lan had signed a debt-for-property agreement on June 10, 2022, and owned the property. The court rejected this objection, holding that Wang's claim could not prevail against N Bank's mortgage right on the property in question.
In the ruling, in addition to determining and analyzing the priority of the mortgage right and the authenticity of the debt-for-property agreement, the court also specifically reasoned on the issue of the buyer's prospective property right.
II. Analysis of Relevant Articles
Regarding the change of property rights, according to Article 209 of the Civil Code, the establishment, change, transfer, and extinction of real estate property rights shall take effect upon registration in accordance with the law; they shall not have property right effect without registration. However, after the buyer signs a legally valid sales contract, even if the registration is not completed, he or she can still claim rights to the subject matter based on the contractual debt right. On this basis, Article 27 of the Supreme People's Court's Provisions on Several Issues Concerning the Handling of Execution Objections and Reconsideration Cases by the People's Courts (hereinafter referred to as the "Execution Objection Provisions") stipulates: The applicant for execution has a priority right to repayment, such as a security interest, against outsiders in accordance with the law, and the people's court shall not support the objection to execution raised by outsiders, except as otherwise provided by law or judicial interpretation. The exception here includes the prospective property right of the buyer as stipulated in Articles 28 and 29 of the "Execution Objection Provisions".
Article 28 applies to non-consumer buyers (such as buyers who purchase non-residential properties or properties not for residential purposes), and stipulates that under certain conditions, the execution of ordinary monetary claims can be excluded. In the execution of monetary claims, if a buyer objects to real estate registered in the name of the debtor and meets the following conditions and his or her rights can exclude execution, the people's court shall support it: (1) A legally valid written sales contract was signed before the people's court seized the property; (2) The buyer legally possessed the real estate before the people's court seized it; (3) The buyer has paid the full price, or has paid part of the price as agreed in the contract and will pay the remaining price as required by the people's court; (4) The transfer registration has not been completed due to reasons beyond the buyer's control. Article 29 is specifically designed to protect consumers of commercial housing (buyers who purchase residential housing for residential purposes and have no other housing under their name), and therefore sets relatively relaxed conditions to resist compulsory execution. In the execution of monetary claims, if a buyer objects to commercial housing registered in the name of the real estate development enterprise being executed and meets the following conditions and his or her rights can exclude execution, the people's court shall support it: (1) A legally valid written sales contract was signed before the people's court seized the property; (2) The purchased commercial housing is for residential purposes and the buyer has no other housing for residential purposes under his or her name; (3) The amount paid exceeds 50% of the total contract price.
III. Analysis of Key Legal Elements
The prospective property right of the buyer balances the principle of the effectiveness of property registration and the need for protection of transaction security, providing phased rights protection for buyers who have not completed registration. However, claiming this right requires strict compliance with statutory conditions and attention to evidence collection (such as contracts, payment vouchers, proof of possession, etc.).
First, the establishment of both types of prospective rights requires that the house purchase contract be signed before the court's seizure. In addition, the prospective property right of a general buyer also requires that the objector has legally possessed the real estate before the people's court's seizure. This possession needs to be proved by providing handover procedures, property fee payment records, water and electricity bills, etc.
Second, regarding the payment of the price, for general buyers, the condition for the establishment of the objection is that the full house price has been paid. If only part of the house price is paid, the remaining part of the price should still be paid as required by the court. In the case of commercial housing buyers, it is only required that the amount paid reaches 50%.
IV. Conclusion
The prospective property right of the buyer is an important protection mechanism provided by Chinese law for buyers who have not completed property registration. Its core lies in balancing the value conflict between the principle of the effectiveness of property registration and transaction security. Through Articles 28 and 29 of the "Provisions on Execution Objections and Reconsideration," the law distinguishes between consumer and non-consumer buyers. The former enjoys relaxed protection based on the priority of the right to survival, while the latter must strictly meet the requirements of signing a contract before seizure, legal possession, payment of the price, and non-transfer due to reasons beyond their control. Although this right gives the buyer the power to resist ordinary claims and mortgage rights under specific circumstances, it is essentially still limited by the ultimate effectiveness of property registration. Its institutional design reflects the maintenance of the trust interest in transactions, but also warns buyers to fully fulfill their obligations and keep evidence to achieve the prudent regulation of the dynamic transition of rights by law.
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