Legal information

Can a house with a mortgage still be sold?

Yingting Law Firm has a professional and efficient team of lawyers. With many years of practice experience, it has achieved outstanding results in people's courts at all levels and major arbitration institutions. We use a combination of "litigation and non-litigation" to formulate appropriate legal strategies for our clients to ensure that their interests are protected.

For a house that has been mortgaged, if the buyer knows that it is a mortgaged house at the time of purchase, the house sales contract signed with the developer is not subject to restrictions.
On the contrary, if a developer wants to sell the house used as a mortgage, it will be subject to the following restrictions:
1. Notify the mortgagor and, with his consent, sell the mortgaged house;
2. Truthfully inform the buyer that the house has been mortgaged.

Therefore, if the developer fails to fulfill the above obligations when selling the mortgaged house, it will bear the consequences of the house sales contract being invalid.
However, when buyers purchase a mortgaged house, they need to bear certain legal risks. One of the reasons is that the developer cannot repay the loan on time. If the house cannot be released from the mortgage, it will directly affect the buyer's processing.

Moreover, if the developer is sued for overdue loan repayment, the mortgaged house may also be auctioned, and the home buyer may be left with both money and house.
Naturally, if the buyer does not realize in advance that the house has been mortgaged, he can negotiate with the developer or litigate to terminate, revoke or declare the contract invalid, and actively claim damages for breach of contract.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail. If you want to know more about this, you can consult lawyer Ying Ting for one-on-one online consultation.