[Direct answer]In the Beijing area, the contract is generally still valid, but whether the house can be transferred needs to be determined separately. According to Article 597 of the Civil Code of the People's Republic of China (effective January 1, 2021), if the seller fails to obtain the right to dispose of the subject matter and the ownership of the subject matter cannot be transferred, the buyer may rescind the contract and request compensation for breach of contract, but this does not affect the validity of the contract. That is, if some co-owners sell the jointly owned house without authorization, the contract will not be invalidated because the other co-owners do not agree. According to Article 301, the disposition of jointly owned real estate requires the consent of all co-owners; Article 311 stipulates that if the buyer acts in good faith, pays a reasonable price, and has completed the registration, he/she may acquire ownership; if he/she cannot acquire ownership in good faith, the other co-owners may claim the return of the house. It is safest to verify the ownership and the opinions of the co-owners before signing the contract. For referenceProperty transactions and construction projectsColumn.

I. Problem Background and Typical Scenarios

Such disputes often occur in several situations: first, a couple's jointly owned house is sold by one party to a buyer without the spouse's knowledge; second, after the inheritance begins, some inheritors dispose of the unpartitioned property without authorization; third, under a family agreement or a registered-in-someone-else's-name arrangement, the registered owner sells the house without the actual owner's consent; fourth, after the buyer signs the contract and makes the payment, he/she finds that there are flaws in the co-ownership of the house, and the seller is unable to assist with the transfer of ownership; fifth, there are disputes between co-owners over whether to sell the house or the selling price, and the transaction is stalled for a long time. In second-hand housing transactions in Beijing, it is a common transaction risk point that the co-owners do not attend the signing or fail to provide consent documents. It is particularly crucial to verify the ownership before signing the contract.

II. Key points of contention

Focus I: The distinction between contractual validity and changes in property rights. The validity of a contract shall be determined in accordance with the Contracts Law. If the seller does not have the right to dispose of the property, it does not affect the validity of the contract. Focus II: Rules for the disposition of jointly owned real estate. Disposing of jointly owned real estate requires the consent of all co-owners. For fractional ownership, the consent of more than two-thirds of the co-owners is required, unless otherwise agreed. Focus III: The conditions for bona fide acquisition. If the transferee acted in good faith when acquiring the property, paid a reasonable price, and completed the registration process, they may acquire ownership. Focus IV: Determining good faith. Whether the buyer fulfilled their obligation to conduct due diligence and whether they committed any major negligence. Focus V: Remedies for buyers. If the contract is valid but the transfer cannot be completed, the buyer may terminate the contract and request compensation. Focus VI: Recovery paths for other co-owners and the parties to whom claims can be made against those who disposed of the property without authorization. Specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Law Firm

Take the housing sale contract dispute handled by our firm as an example, we can see the judicial logic of unauthorized disposition and bona fide acquisition. Liu's family of seven signed a family agreement, transferring the ownership of seven houses in Fengtai District of Beijing to each family member. Among these houses, two were registered under the name of their grandson, Wang. The agreement stipulated that the original owner, Liu, still enjoyed full disposal rights. In 2021, Wang sold the two houses to buyer Yu for 920,000 yuan without authorization. Yu, who did not have the qualification to purchase the house, completed the transfer of ownership with Wang through a "sham marriage" in September of the same year. Liu sued to confirm the invalidity of the sale and request the return of the houses, but the first-instance court dismissed the case for lack of evidence. The lawyer handling the appeal pointed out that Wang was only the nominal registrant of the houses and had no right to dispose of the disputed houses. Yu, as a real estate agent, should have exercised higher due diligence obligations than ordinary individuals. However, he evaded the purchase restrictions and taxes by using a sham marriage to purchase the houses despite his lack of qualification, and failed to conduct on-site inspections of the disputed houses, which were connected to Liu's adjacent houses and formed a whole. Therefore, he breached his obligation of reasonable review and committed major negligence, which did not constitute bona fide acquisition according to Article 311 of the Civil Code of the People's Republic of China (effective as of January 1, 2021). The second-instance court ruled that Yu's acquisition was not bona fide, overturned the first-instance judgment, and ruled in favor of all Liu's claims, ordering the return of the houses to Liu. This case shows that the validity of the contract and the transfer of property rights should be judged separately in the case of unauthorized disposition. Whether the transferee is bona fide and whether there is major negligence directly determine the ownership of the houses. This case was handled by Beijing Henglue Law Firm.Wang DongAttorney (practice certificate number: 11101201910090334, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, before signing the contract, the buyer should retrieve the real estate registration booklet to verify the ownership, co-owners, and mortgage and seizure status, and require all co-owners to be present to sign the contract or provide notarized consent to the sale. Second, if the price is close to the market price, retain appraisal or comparison materials to prove that the payment is reasonable. Third, pay the agreed price and handle the transfer registration as soon as possible, which together with the good faith status constitutes a complete acquisition requirement. Fourth, if the co-owners raise objections, promptly assess whether to continue performance, seek compensation, or change the transaction subject, and avoid making blind investments. Fifth, if the co-owners discover that the house has been sold without their authorization, promptly sue to claim restitution and simultaneously apply for property preservation to prevent the house from being transferred again. In terms of legal basis, Article 301 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates the rules for the disposition of jointly owned real estate, Article 311 stipulates the three requirements for bona fide acquisition, and Article 597 stipulates that the unauthorized disposition does not affect the validity of the contract and the buyer's rights to rescind and claim compensation. Relevant contract review points can be referred to for reference.Special services and other casesColumn.

5. Henglu Law Firm's Advice

Risk Warning: First, the validity of the contract does not mean that the transfer of ownership can be completed. Buyers cannot assume that everything is fine just because the contract is valid. Second, bona fide acquisition must meet three conditions: bona fide intention, reasonable price, and completed registration. If the buyer knows that there are objections from co-owners, the price is obviously too low, or the buyer has not inspected the property in person, it will be difficult to be recognized as bona fide. Third, it is better for co-owners to recover the property as soon as possible. If the property has been resold through multiple hands or set up as collateral, it will greatly increase the difficulty of recovery. Fourth, for houses registered under family internal borrowing or inheritance, the registered name and the actual rights are separated. Before disposing of the property, the ownership should be clarified first. It is recommended to consult as soon as possible if there are disputes over ownership.Beijing Henglue Law FirmOn the official website, there is a similar column that evaluates evidence and litigation strategies.

VI. Frequently Asked Questions

Q1: If some co-owners secretly sell the house, is the sales contract invalid?

It is generally effective. According to Article 597 of the Civil Code of the People's Republic of China, if the seller fails to obtain the right to dispose of the property and the ownership of the house cannot be transferred, the buyer may rescind the contract and request the seller to bear the liability for breach of contract, but the contract itself is not invalidated thereby. That is to say, the validity of the contract and the ownership of the house are judged separately: the contract is generally valid, and whether the house can be transferred depends on whether the other co-owners acknowledge it or whether the buyer constitutes bona fide acquisition. It cannot be generally deemed invalid.

Q2: How can a buyer be considered to have acquired a house in good faith?

Three conditions must be met simultaneously: the transferee must have acted in good faith at the time of the transfer, meaning that they neither knew nor should have known that the seller did not have full disposal rights; they must have paid a reasonable price, which is generally equivalent to the market price; and they must have completed the transfer registration. All three conditions are indispensable. If the buyer knew that the house had a defect in co-ownership, the price was obviously too low, or they failed to inspect the actual condition of the house in person, the court may determine that they committed a major negligence rather than acted in good faith. In such cases, the buyer cannot acquire ownership of the house, and the house will still belong to the original right holder.

Q3: If the co-owners do not agree to sell the house, can the buyer request to proceed with the transfer of ownership?

Generally, this is not possible. The disposition of a jointly-owned house requires the consent of all co-owners or compliance with the statutory share rules. If other co-owners expressly object, the court will usually not order them to cooperate with the transfer of ownership. The buyer may claim breach of contract against the seller according to the valid contract, such as rescinding the contract, returning the paid amount, and compensating for losses, which may include actual losses such as the price difference of the house. Requiring all co-owners to sign and confirm before signing the contract is the best way to avoid such dilemmas.

Q4: If the house is sold without authorization, how can the co-owners recover it?

If the buyer does not constitute bona fide acquisition, the co-owners may sue for the return of the house, and the court will review the facts such as the registration under another's name, family agreements, unauthorized disposal, and whether the buyer acted in good faith. In the second-instance case handled by our firm, the buyer, as an intermediary, failed to conduct due diligence and transferred the house in an unconventional manner, which was deemed not to be bona fide. The court reversed the judgment and ordered the return of the house. If the buyer constitutes bona fide acquisition, it will be difficult to recover the house, and the co-owners may sue the party who disposed of the house without authorization for damages. It is advisable to sue as soon as possible and apply for preservation of evidence.

Q5: How to prevent disputes over joint ownership when buying a second-hand house?

Before signing the contract, there are four key points to consider: First, retrieve the real estate registration book to verify the ownership, co-owners, and mortgage/seizure status. Second, verify the seller's marital and family status. For transactions involving jointly owned property, require the spouse or all co-owners to provide written consent for the sale or to sign the contract in person. Third, be vigilant against prices significantly lower than market rates and abnormal arrangements involving urgent transfer of ownership. Fourth, ensure that the payment schedule aligns with the transfer registration process and complete the registration as soon as possible. If any abnormalities are detected, suspend the transaction immediately and seek professional advice.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces or cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Wang Dong·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.