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As the price of commercial housing in various cities continues to soar, many people who want to buy a house are deterred, so some people turn their attention to low-priced small-property houses. So what does small-property housing mean? What are the legal risks in the sale of small-property houses? Regarding these issues, a lawyer from Yingting Law Firm will introduce them to you, let’s take a look!

What does small-property housing mean?
Houses with small property rights usually refer to houses similar to commercial houses built on rural collective land in the name of new rural construction a few years ago. However, unlike commercial houses, which require payment of land transfer fees, the property rights certificate is usually issued by the township government, so it is called a house with small property rights. However, the small property rights issued in this way are not recognized by the national housing management department.

To put it simply, houses with small property rights refer to houses built on rural collective land. For which land transfer fees and other fees have not been paid, the property rights certificates are not issued by the national housing management department, but by the township government or village government. They are also called "villages with rural property rights" and "houses with small property rights". They are not legal concepts, but a common title formed by people in social practice.

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This type of house does not have a land use certificate and a pre-sale license issued by the state, and the purchase contract will not be registered with the Land and Housing Administration Bureau. The so-called property right certificate is not a truly legal and effective property right certificate. "Small property rights houses" have two properties: one is built on collective construction land, that is, the houses built on the "homestead" only belong to the collective owners of the countryside, and farmers from other villages cannot buy them; the other is illegally built on collective enterprise land or occupying farmland.

Legal risks in the sale of houses with small property rights
1. In principle, it is determined to be invalid. According to my country's current laws and regulations and the actual social situation, the validity of the small-property house sales contract is invalid in principle. There may be valid exceptions. Social disputes are huge and legal risks are huge.
2. Real estate certificate issues affect appreciation. After purchasing a house, you cannot obtain the house ownership certificate and cannot legally transfer it. At the same time, it also has a great impact on the preservation and appreciation of the house.

3. Development and construction risks There is also a lack of supervision over development and construction. If the purchase funds are handed over in advance to a development unit without any qualifications and supervision, for the home buyers, there are great risks to the security of the funds, whether the developer's funds are available on time, and whether the houses can be delivered on time and with high quality.
4. Risks of national policy regulation and control.

Demolition compensation issues: If you buy a house with small property rights under construction and changes in national policies lead to the cessation or demolition of the construction project, the buyer can only ask for purchase funds from the developer, and may face the embarrassing situation of neither being able to obtain the house nor recovering the house funds in time. In addition, if the house is subject to national land acquisition and demolition after purchasing the house, since the township property rights house does not have legal property rights recognized by the state, the home buyer is not a legal property owner and is likely to be unable to obtain property rights demolition compensation.

5. House quality and after-sales maintenance are not guaranteed. The construction of houses with small property rights may not pass the house quality acceptance and other procedures at all, which is prone to house quality problems. There is no maintenance funds for houses with small property rights. Once there is a problem with the quality of the house, it will be difficult to safeguard the interests of the buyer.
6. The application of laws to resolve disputes is unclear. Due to the special legal attributes of small-property houses, small-property houses are different from ordinary commercial houses. There are many restrictions on their circulation. The People's Court cannot apply the legal provisions and judicial interpretations of commercial housing sales in cases involving small-property houses, making it difficult to protect the rights and interests of home buyers. If you want to know more about this, you can consult lawyer Ying Ting for one-on-one online consultation.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail.