[Case Summary]This case involves a dispute over the creditor's right of revocation. The client, Chen * was sued by his nephew, Ren * in court. Ren * claimed that Chen * signed a grossly unfair house purchase agreement with his father, Ren *1 by improper means, transferring a property worth hundreds of thousands of yuan for only 100,000 yuan, infringing his inheritance rights, and requested to revoke the two "Private House Purchase Agreements". Chen * entrusted Beijing Henglu Law Firm to handle the case.Liu LiqiangAttorney representation. The lawyer found that Ren *1 and Ren * had little contact since childhood, and pointed out that Ren *1 had full ownership of the property involved in the case and could freely dispose of it; even if there was a manifestly unfair situation, the right of revocation should be exercised by Ren *1 himself; and the property had already been transferred, and at the time of Ren *1's death, it did not belong to his estate, so Ren * had no right to inherit and exercise the right of revocation, and therefore did not have the qualification to be a litigant. Core disputes: Whether the plaintiff Ren * has the right to sue, and whether the property involved in the case belongs to the estate. Applicable laws: Article 151 of the General Principles of the Civil Law of the People's Republic of China, and Articles 122 and 157 of the Civil Procedure Law of the People's Republic of China. In the end, the court adopted some of our opinions and ruled to dismiss Ren *'s lawsuit.

I. Review of the case

After buying a house at a low price and completing the transfer of ownership, many years later, the seller's children might come knocking on the door, saying "This is my father's inheritance. The sale was unfair and we want to revoke it." This is what second-hand house buyers fear most: "What should I do if the seller's relatives claim the sale is invalid after buying the house?" "How to deal with the claim that the property is an inheritance?" "Can a contract that is grossly unfair be revoked?" Recently, my law firm has encountered many such cases.Liu LiqiangA creditor's right of revocation dispute case handled by the lawyer ended in a victory. The client Chen *'s nephew Ren * sued him in court: Ren *1 and the plaintiff Ren * are father and son. Ren *1 died on June 26, 2020. On December 2, 2019, Ren *1 (the party A/seller) and Chen * (the party B/buyer) signed two "Private Housing Sale and Purchase Agreements", stipulating that the building area of Room No.1 is 30.9 square meters with a transaction price of 100,000 yuan, and the building area of the storage room is 7.59 square meters with a transaction price of 8,000 yuan. The party B paid all the purchase price to the party A on December 2, 2019, and the party A delivered the property to the party B on the same day. Both properties have gone through the transfer formalities. The plaintiff Ren * argued that Chen * signed the grossly unfair sales agreement with his father by improper means, making his father's property worth hundreds of thousands of yuan be transferred for 100,000 yuan, which seriously infringed his property rights to inherit his father's estate, so he requested to revoke the two agreements.

II. The focus of the case

  • Focus 1: Whether the plaintiff, Ren *, has the qualification to be a party to the lawsuit.Ren *1 had already sold and transferred the property before his death, and the property did not belong to his estate when he passed away. Whether Ren *1 could exercise the right of revocation based on the inheritance relationship is a prerequisite for the case to proceed to substantive trial.
  • Focus Two: Whether the sales agreement in the case constitutes a manifestly unfair transaction and can be revoked.Even if there are circumstances of manifestly unfairness in the agreement as claimed by the plaintiff, the subject who can file a lawsuit for revocation according to law should be Ren *1 himself, rather than his inheriting children. The subject's qualification directly determines the success or failure of the claim.
  • Focus 3: The ownership of the property after it has been transferred.The ownership of the property has already been transferred from Ren *1 to Chen * since the transfer of ownership. The plaintiff claims rights on the grounds of "inheritance", which is obviously inconsistent with the registration of property rights and the facts of inheritance.

III. The professional intervention of Hengluo Law Firm

The plaintiff (Ren *), claims that:Ren * claimed that Chen * signed a grossly unfair house purchase agreement with his father, Ren *1, by improper means, transferring the ownership of a property worth hundreds of thousands of yuan for just 100,000 yuan, infringing his right to inherit his father's estate. He requested the revocation of the two "Private House Purchase Agreements".

The defendant's (Chen *'s) position:Chen * believes that the house sale and purchase was a genuine transaction with Ren * 1, and he has already paid the full purchase price and completed the transfer of ownership. Ren * 1 was free to dispose of his own property during his lifetime, so he does not agree to revoke the transaction.

Hengluo Lawyer's Agency Opinion:After that, Chen * entrusted our law firm to handle the case for him/her.Liu LiqiangThe lawyer represented this case. The lawyer learned that Ren *1 divorced from his mother when Ren * was very young, and the father and son had almost no contact since then. After analyzing the details of the case and the evidence, the lawyer proposed according to Article 151 of the General Principles of the Civil Law of the People's Republic of China: Ren *1 had full ownership of the property involved in the case and could freely dispose of it; even if the contract involved in the case really had the circumstances of obvious unfairness as stipulated in the above-mentioned law, the person who could file a suit for revocation of the right should be Ren *1 himself. Ren *1 sold the property involved in the case to Chen * and completed the transfer formalities. The owner of the property has been changed from Ren *1 to Chen *. When Ren *1 died, the property did not belong to his estate. The plaintiff, Ren *, could not obtain the right to the property involved in the case based on the inheritance relationship, nor could he obtain the right to revoke the contract involved in the case based on the inheritance relationship. Therefore, the plaintiff, Ren *, does not have the litigation subject qualification, and his lawsuit should be dismissed according to law.

IV. Outcome of the case

After the trial, the court adopted some of our lawyers' opinions and, in accordance with Articles 122 and 157 of the Civil Procedure Law of the People's Republic of China, ruled as follows: Dismiss the plaintiff Ren *'s lawsuit. This means that Chen *'s legally acquired property rights have been firmly protected, and his nephew Ren *'s claim for revocation on the grounds of "inheritance" has not been supported by the court.Liu LiqiangThe lawyer successfully preserved the client's property for him/her.

5. Henglu Law Firm's Reminder

When purchasing a second-hand house, it is necessary to handle the transfer registration as soon as possible. The ownership of the property takes effect upon registration, which can fundamentally prevent subsequent disputes from the seller's relatives on the grounds of "inheritance". This case was handled by Beijing Henglu Law Firm.Liu LiqiangAttorney (Practice Certificate No.: 11101200910454358, subject to the certificate issued by the judicial administrative organ). Attorney's Reminder: According to Article 151 of the General Principles of the Civil Law of the People's Republic of China, if one party takes advantage of the other party's state of distress or lack of judgment capacity to conclude a civil legal act that is manifestly unfair, the injured party has the right to request its revocation, but the right of revocation shall be exercised by the injured party himself. The owner of the property has the right to freely dispose of his own property. After the transfer is completed, the property will no longer be part of his estate; the heirs can only inherit the legitimate property left by the deceased at the time of his death and have no right to claim the revocation of the property that has already been disposed of. If the buyer encounters similar claims, he should promptly entrust a professional lawyer to defend against the registration of property rights based on his legal status.

VI. Common Questions About House Purchase and Sale Cases - FAQ

  1. Q: What should I do if my property is claimed as an inheritance?
    A:The key point is whether the property has been transferred. If the seller has sold the property and completed the transfer before his death, the property does not belong to his estate, and his children have no right to revoke it on the grounds of inheritance. In this case, they can use the sales contract and the registration to defend against the claim.
  2. Q: Can a sales contract that is manifestly unfair be revoked?
    A:Yes, but the aggrieved party must exercise the right of revocation within the statutory period; non-heirs generally do not have the right to claim on behalf of the party concerned.
  3. Q: How should I deal with the seller's children causing a scene after I buy the house?
    A:Keep the sales contract, payment receipts, and transfer registration. Entrust a lawyer to handle the registration of property rights and the defense of legal capacity, and if necessary, file a lawsuit for confirmation to secure the ownership of the property.
  4. Q: Are there still risks after the transfer of a second-hand house?
    A:After the transfer of ownership, the property rights have been transferred, and the risk has been greatly reduced; however, it is still recommended to verify the seller's marital and inheritance status to avoid disputes with relatives over joint ownership or inheritance in the future.
  5. Q: Will buying a house at a low price be considered unfair and inequitable?
    A:Not necessarily. As long as both parties' true intentions are clear, there is no coercion or fraud, and the buyer does not take advantage of the other party's difficulties, a low price alone does not necessarily constitute a manifestly unfair situation. It needs to be judged based on the circumstances at the time of the contract signing.