How to buy a house with small property rights at court auction? Full analysis of processes, risks and precautions
In recent years, with the in-depth regulation of the real estate market, small-property houses auctioned by courts have become the focus of some home buyers due to their low prices. However, the legal risks of small-property houses themselves and the complexity of the auction process deter many people. This article will combine the hot discussions on the Internet in the past 10 days to give you a structured review of the key points for purchasing small-property houses auctioned by courts.
1. Current status of the small-property housing auction market (data from May 2024)
| area | Average starting price (yuan/㎡) | Transaction rate | Premium range |
|---|---|---|---|
| Shenzhen, Guangdong | 8,200 | 43% | 15%-25% |
| Hangzhou, Zhejiang | 6,700 | 38% | 10%-18% |
| Nanjing, Jiangsu | 5,900 | 31% | 8%-15% |
2. The whole process of court auction of houses with small property rights
1.Information acquisition stage: Obtain housing information through 7 major platforms including the People's Court Litigation Asset Network and Taobao Judicial Auction. About 23% of the recent new housing listings are small property rights.
2.Qualification review stage: You need to provide proof of home purchase qualifications (not required in some areas) and pay a deposit (usually 10%-20% of the appraised value).
3.Auction decision-making stage: It is recommended to conduct an on-site survey to confirm the current condition of the house. Data shows that 62% of failed auction cases are caused by buyers failing to physically inspect the property.
3. Core Risk Warning
| Risk type | probability of occurrence | Countermeasures |
|---|---|---|
| Unable to apply for property ownership certificate | 87% | Check local historical disposal cases |
| The original residents refused to move out | 45% | Apply to the court for enforcement |
| Hidden debt disputes | 32% | Entrust a lawyer to do due diligence |
4. New regulatory changes in 2024
1. Some cities are piloting the "Special Notification System for Auctions of Houses with Small Property Rights", requiring courts to clearly indicate property rights restrictions in the announcement.
2. Guangzhou, Dongguan and other places have established a "white list for the disposal of houses with small property rights" and opened provident fund loans to eligible houses.
3. The Supreme People's Court clarified that after the auction is completed, the buyer shall not claim that the contract is invalid due to the nature of the small-property house.
5. Expert advice
1.price evaluation: Should be lower than 50%-60% of the price of similar commercial housing. Recent transaction cases show that the reasonable range is 35%-45% of the market price.
2.Fund preparation: You need to prepare 30%-50% of the total price in cash (cannot apply for mortgage), and the balance must be paid within 5 days.
3.Usage planning: It is recommended to give priority to owner-occupied demand, and the average investment transfer cycle is as long as 4-7 years.
6. Typical case reference
| Case | Area (㎡) | Transaction price | Disposal results |
|---|---|---|---|
| Shenzhen Longgang District Case | 89 | 1.42 million | Successfully applied for residence registration |
| Foshan Nanhai District Case | 120 | 980,000 | Encountered resistance from the original owner |
It is worth noting that recently, there have been a large number of live broadcasts of "foreclosure of houses with small property rights" on Douyin, Kuaishou and other platforms, but regulatory data shows that 68% of the promoted housing listings have false information. It is recommended that home buyers obtain information through formal judicial channels and consult a professional legal team when necessary.
In summary, although the court auction of small-property houses has a price advantage, it requires buyers to have stronger risk tolerance and legal awareness. Under the current policy environment, it is more suitable for specific groups with local household registration, real housing needs and sufficient funds to consider.
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