China's first batch of "Right of Residence" certificates appeared.
This is a "minefield" that you have to consider in second-hand housing transactions.
Recently, the "Wuhan City Residency Registration Code of Practice (Trial)" came into effect.
The local government not only issued the first "right of residence" certificate, but also the first case of enforcement of the right of residence had already occurred before.
The existence of the right of residence makes real estate transactions more complicated.
In the past, real estate transactions only needed to see whether there was a mortgage and whether there was a lease. In the future, real estate searches will depend on whether there is a "right of residence." Once the right of residence exists, real estate transactions will not be so simple.
Once the right of residence is neglected, even if you buy a house, you may not be able to live in it. This is a "minefield" that you have to consider in second-hand housing transactions.
This case is very representative:
A lady from Wuhan made a will before she passed away due to illness.
Give her real estate to his younger brother,
The husband can still live in it until he remarries.
At the beginning of this year, the house was listed for sale, and the husband was worried that it would affect his residence, so he applied to the court for enforcement of residency rights.
At present, the court has executed its ruling and registered the right to reside in the house under the husband's name.
This means that even if the property can be sold and the title be trasnferred smoothly, but the husband's right of residence will still be established. Neither the younger brother nor the new owner can directly expel the holder of the right of residence without negotiation.
Owning this house, it is impossible to decide whether or not the holder of the right of residence will stay. This scene sounds funny and weird, but it is the normal state of "right of residence" in the future.
Right of residence, what exactly is it?
The Article 366, 367,368, 369, 370 and 371, Civil Code, which came into effect on January 1, 2021, added "right of residence" to the property rights section.
According to regulations, the right of residence is established without compensation, established at the time of registration, and cannot be transferred or inherited. The residence for which the right of residence is established shall not be rented out (except as agreed upon). If the period of the right of residence expires or the holder of the right of residence dies, the right of residence shall be extinguished.
This is equivalent to establishing a new "right of residence" in addition to housing ownership. However, the right of residence can only guarantee the right of residence, and the right is not transferable and inherited.
Even so, as long as the house has a "right of residence", it can live for a long time or even for a lifetime even without the ownership of the property.
Even if the new owner obtains the title of ownership afterwards, it cannot change the existing reality of the "right of residence" and has no right to drive out the holder of the right of residence. According to the new regulations, the right of residence must be signed by the homeowner in a written contract and registered with the registration agency. The owner has the right to decide on this.
Therefore, the right of residence can be revoked or changed, but there will be obvious differences in the value of the house with or without the right of residence.