[Case Summary]This case involves a dispute over a contract for purchasing a house under someone else's name. In 1996, Liu Shufen obtained a resettlement house at No. 101 in Fengtai District, Beijing through demolition. In 2005, she purchased the house under her mother Zhang Dongmei's name through the housing reform program and signed a "Resettlement House Agreement" explicitly stating that the purchase was under someone else's name. After her parents passed away, her sister Liu Shufang sued for inheritance and the first-instance court ruled that the house should be inherited by her. Liu Shufen entrusted Beijing Henglu Law Firm to handle the case.Li YonghuiThe appellant submitted the newly discovered "Agreement on the Resettlement Housing for Demolition", and the appellate court revoked the inheritance judgment of the first-instance court. Thereafter, the appellant sued for the transfer of ownership on the grounds of a contract dispute. The core dispute lies in the agreement on buying the house under a borrowed name and the actual investment. The court supported the plaintiff and ordered the defendant to assist in the transfer of ownership. The case applies the Civil Code of the People's Republic of China and relevant policies on demolition and real estate.

I. Review of the Case Facts

"How to prove the actual investor when buying a house under someone else's name?" and "Can a house bought under someone else's name be transferred?" are frequently encountered issues in family property disputes. The matter dates back to the 1996 demolition. Liu Jie and Zhang Dongmei had four daughters. The public housing located at No. 5 Hutong, Xicheng District, Beijing was facing demolition. Liu Shufen was registered as the household head and, as a resettlement recipient, obtained two resettlement houses, one of which was the disputed No. 101 house in Fengtai District in this case.

"At that time, in order to reimburse the heating fee in my mother's name, I registered the lessee of House No. 101 under my mother's name," recalled Liu Shufen. In March 2005, during the housing reform, Liu Shufen purchased the house with full funding under Zhang Dongmei's name, and signed the "Agreement on Demolition and Resettlement Housing" with Liu Jie and Zhang Dongmei on February 16, 2005, stating that House No. 101 was Liu Shufen's demolition and resettlement housing, and Zhang Dongmei was only the registered name. After her parents passed away, her younger sister Liu Shufang sued for inheritance disputes, and the Chaoyang Court of First Instance ruled in favor of Liu Shufang's inheritance on the grounds that "there is no evidence to prove the intention of buying the house under another's name and the actual funding".

Liu Shufen entrusted the Beijing Henglu Law Firm to handle the case.Li YonghuiAfter filing an appeal, the Second Instance Court submitted the previously unfound "Agreement on the Relocation and Resettlement of Housing", and the Third Intermediate Court of Beijing revoked the first-instance judgment on the inheritance of Room 101; subsequently, the lawyer assisted Liu Shufen in suing the three sisters for assistance in the transfer of ownership on the grounds of "contract disputes".

II. The focus of the case

  • Focus 1: Whether there is a legal and valid agreement between Liu Shufen and Zhang Dongmei for purchasing the house under someone else's name.The signing of the "Agreement on Resettlement Housing for Demolition" by the three parties clarifies the fact of using someone else's name, which is the core evidence of the agreement.
  • Focus II: Whether the obligation to make actual investments has been fulfilled.The payment time and amount of the purchase price must be consistent with the records on the deposit interest list and the withdrawal records in the passbook.
  • Focus Three: Should housing be divided as part of a parent's estate?The defendant claimed that it was the couple's joint property, but the lawyer refuted this claim based on the loan agreement in the defendant's name and the ruling of the Third Intermediate Court.

III. The professional intervention of Hengluo Law Firm

The plaintiff (the borrower) claimed that:Liu Shufen claimed that House No. 101 was her relocation compensation, and that there was a clear agreement with Zhang Dongmei to buy the house under her name with actual investment, so it should belong to her. She asked the three sisters to assist her in transferring the ownership of the house.

The defendant (the heir's side) argued that:Liu Shufang and others denied the loan agreement, claiming that the "Agreement" did not reflect the parents' true intentions and the diary did not mention it; they questioned the authenticity of the investment and claimed that the purchase price was paid by Zhang Dongmei; they argued that the house was the parents' joint property and should be treated as an inheritance.

Legal Opinion by Hengluo Law Firm:Li YonghuiBuilding a complete chain of evidence: The basic evidence of demolition rights (the "Demolition and Resettlement Assistance Agreement" and the "Household Registration Form") proves that Liu Shufen is the original resettled person; the core evidence of the borrow-name agreement is the "Demolition and Resettlement Housing Agreement" signed by the three parties in 2005; the evidence of investment and use includes the interest list of savings deposits in ICBC and the withdrawal records of the passbook, which highly coincide with the payment time and amount of the purchase price of 33,561 yuan and related expenses totaling 35,341 yuan; the litigation corroboration is the second-instance judgment of the Beijing No. 3 Intermediate Court, which has determined that "House No. 101 should not be identified as an inheritance".

IV. Outcome of the case

The court accepted the evidenceLi YonghuiBased on the agent's opinion, the court determined that the relationship of purchasing the house under another's name was established, supported the plaintiff's litigation request, and ordered the defendant to assist in handling the transfer formalities of House No. 101. This case was based on the "Demolition and Resettlement Housing Agreement" and the investment certificates, combined with the previous determination of the Beijing Third Intermediate People's Court that it "should not be regarded as inheritance", and ultimately confirmed that the house belonged to Liu Shufen and guaranteed her right to transfer ownership.

5. Henglu Law Firm's Advice

This case is handled by Beijing Henglu Law Firm.Li YonghuiAttorney (Practice Certificate No.: 11101199611955812, subject to the document issued by the judicial administrative organ) acting as an agent. Attorney's Tip: When buying a house under someone else's name within the family, it is necessary to sign a written borrow-name agreement, clarify the ownership, investment, and the reasons for the nominal registration, and keep the payment receipts for the purchase of the house; before the parents pass away, it is necessary to clarify the relationship between the property registration and the actual right holders, which can avoid difficulties in providing evidence in inheritance disputes.

VI. Common Questions and Answers about Cases of Buying Property under Someone Else's Name

  1. Q:How can I prove that I am the actual investor when buying a house under someone else's name?
    A:The borrowed name agreement, bank transfer or withdrawal receipts for the purchase price, records of property fees and renovation payments, and proof of actual residence should be preserved to form a complete chain of evidence to prove the investment and ownership.
  2. Q:Can I request to transfer the ownership of the house bought under someone else's name to my own name?
    A:If there is a written or actual agreement on using someone else's name as the owner and the actual investment has been made, the name-registered person can be sued to assist in the transfer of ownership; however, if it involves evading policies such as purchase restrictions or violating public order and good customs, it may not be supported.
  3. Q:Only with a verbal agreement to buy a house under someone else's name, will the court recognize it?
    A:There is a high risk of no written agreement, and it is necessary to infer the agreement based on investment certificates, living facts, and witness testimonies, etc. If the evidence is insufficient, it may be deemed that the loan in another person's name is not valid or will be handled as an inheritance.
  4. Q:Is it considered buying a house under someone else's name if I use my money to buy a housing reformed house registered under my parents' name?
    A:If you purchase a house in your parents' name, but it is funded by you and agreed to be owned by you, you can claim that you bought the house under someone else's name. However, there are often restrictions on eligibility to purchase welfare housing and policy-based housing, so you need to refer to relevant policies to make a judgment.
  5. Q:When siblings compete for inheritance, can a contract for purchasing a house under someone else's name be used to contest the inheritance?
    A:A legally valid loan agreement can prove that the house is not part of the deceased's estate, thus excluding inheritance division. However, it is necessary to provide sufficient evidence of the agreement and the investment in the lawsuit.