[Direct answer]This can be claimed, but the burden of proof is significantly higher than in cases with written agreements. The court usually considers four types of evidence to determine the existence of a nominee relationship: investment certificates (transfer notes, payment records), evidence of possession and use (decoration and move-in, payment of property utilities), ownership documents (purchase contracts, invoices, and original property ownership certificates in the hands of whom), and records of the nominee agreement (chats, recordings, emails, and witness statements). According to Article 209 of the Civil Code of the People's Republic of China (effective January 1, 2021), real estate ownership does not take effect without registration. The actual investor generally needs to first confirm the establishment of the nominee contract relationship, and then request the registration party to cooperate with the transfer of ownership; if the house is subject to purchase restrictions, or the registration party disposes of it without authorization or is sealed up by its creditors, the obstacles to property rights confirmation and ownership transfer will be even greater. It is recommended to consult as soon as possible.Legal services for real estate transactions and construction projectsor viaBeijing Henglue Law FirmInterview evaluation.

1. Problem background and typical scenarios

The practice of buying a house under someone else's name often stems from practical considerations such as purchase restrictions, loan requirements, and the inconvenience of disclosing one's identity. In many cases, the two parties only reach an oral agreement. However, the risks often surface years later: after house prices rise, the registered party may regret their decision and claim that the payment was a loan or a gift; if the registered party divorces, their spouse may claim that the house is marital property and demand a share in the division; if the registered party becomes indebted, the house may be seized and executed by their creditors; or the registered party may sell or mortgage the house to a bona fide third party without authorization. In the absence of a written agreement, the actual investor must first address the issue of whether the "consent to buy under someone else's name" can be proven, which determines the overall direction of the case. Once the consent is established, they must also face practical obstacles such as purchase qualifications and the current status of the house. These two types of issues, when combined, make it essential to plan and collect evidence early in such cases.

II. Key points of dispute

  • Determination of a loan agreement in the name of another person: Investment records alone may be interpreted as a loan, a gift, or a joint investment. The court requires that investment records, possession records, note-holding records, and communication records mutually corroborate each other. It's difficult to gain support based on a single aspect of the evidence.
  • Contract Effectiveness and Performance Barriers: The borrowed name used to evade the purchase restriction policy is generally not invalidated, but the transfer of ownership must be based on the purchaser's eligibility to purchase a house; for those who purchase affordable housing and other public housing using borrowed names, the contract's effectiveness and requests for property rights are often denied due to violations of policies and public interests.
  • Registration party's disposal and enforcement risks: If the house has been sold to a bona fide third party, the investor can only claim compensation; if the house is sealed up by the registration party's creditor, it is uncertain whether the borrowed name relationship can be used to avoid enforcement. The judicial interpretations vary from region to region, and the case needs to be evaluated on a case-by-case basis.

III. Practical experience of Henglue Law Firm

The practical observations of Henglue Lawyers in handling disputes over ownership confirmation of real estate purchased under another's name can be summarized as "evidence of agreement determines success or failure, and performance conditions determine the path". Firstly, the key to victory or defeat lies in the closed loop of the agreement on purchasing under another's name and the chain of investment: transfer records should correspond to the payment nodes of the purchase price, and it is preferable to have notes or communication records as evidence. Statements such as "use your name to buy first" and "transfer ownership once the quota is available" in the communication records have the strongest probative force. If there is only a large-amount transfer without other supporting evidence, there is a high risk of being deemed a loan or a gift. Secondly, the court focuses on reviewing the facts of possession and use: who signed the decoration contract, who actually moved in, who paid the property and utility bills, and who kept the original purchase contracts and property ownership certificates. These daily traces are more credible than retrospective statements. Thirdly, three common situations leading to litigation failure deserve attention: only with evidence of investment but no agreement on ownership, the relationship will be defined as a creditor-debtor relationship, and the party can only demand repayment but not ownership; if the house has been sold or mortgaged by the registration party, the purpose of ownership confirmation will fail and the party will have to turn to claiming compensation; if the purchased real estate is a policy-based housing, it will be deemed as evading supervision and it will be difficult to confirm ownership. Fourthly, it is advisable to follow the action sequence of "first securing evidence, then discussing ownership confirmation": promptly request the registration party to confirm the fact of purchasing under another's name in writing and sign an agreement, and arrange for notarization or lawyer's witnessing to enhance the probative force; if no agreement can be reached, promptly file a lawsuit and apply for property preservation to seize the house to prevent its disposal; if there are related disputes such as inheritance and divorce, it can be evaluated whether to handle the case together or confirm ownership separately through other legal means.Legal services for real estate transactions and construction projectsAndSpecial services and other case servicesThe team collaborated to develop a plan.

IV. Practical suggestions and legal basis

Legal basis: Article 209 of the Civil Code stipulates that the establishment, alteration, transfer, and extinction of real estate property rights shall take effect upon registration in accordance with the law. Article 215 distinguishes the effectiveness of contracts from changes in property rights. The absence of property registration does not affect the validity of the contract. Article 465 stipulates that contracts established in accordance with the law are protected by law. The nominee agreement essentially constitutes a contractual relationship, and the investor may request the registration party to fulfill the obligation of transferring ownership according to the contract. The "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Enforcement Objections and Review Cases by People's Courts" (effective May 5, 2015) provides a review framework for third-party enforcement objections. However, whether the nominee purchase of a house can exclude the enforcement of the registration party's creditor is subject to different interpretations in different regions. This needs to be evaluated comprehensively based on whether the purchase evades purchase restrictions, the degree of fault, and the timing of seizure. Evidence list: Payment receipts for the purchase price and loan repayment records, deed tax invoices and maintenance fund tickets, renovation contracts and occupancy certificates, property water and electricity payment bills, original purchase contracts and property ownership certificates, communication records between the parties, and witness statements. Action recommendations: Centrally store and scan backup copies of the original evidence; first supplement the agreement or obtain written confirmation before assessing litigation; simultaneously apply for seizure during litigation to avoid the situation of "winning the ownership right but having the house already been executed".

5. Henglu Law Firm's Advice

The lessons of buying a house under someone else's name mostly lie not in the law, but in the fact that "no paperwork was left at the time". The absence of a written agreement doesn't necessarily mean losing the case, but it means that both parties have to reconstruct their mutual consent through years of investment, residence, bills, and chat records, which involves higher costs and greater uncertainties. Three reminders: Transfer ownership as soon as possible after restoring the right to purchase a house or lifting the purchase restrictions; reassess the risks and strengthen the agreement when the registration party's marital status or debt situation changes; and keep the transfer notes and receipts for any large-scale investments. If you are currently facing the registration party's regret, the house being sealed up, or litigation for property rights, it is recommended to seek legal help as soon as possible.Beijing Henglue Law FirmConsultation: Complete the fixation and preservation of evidence before it is lost.

Q1: If there is no written agreement, can only the bank transfer records be used to confirm ownership?

It's very difficult to win a lawsuit solely with transfer records. The transfer may be interpreted by the registrant as a loan, a gift, or a joint investment. The court needs to verify the borrowing agreement through corroboration of investment, possession and use, bill holding, and communication records. According to Article 465 of the Civil Code, the borrowing relationship is essentially a contractual relationship, and the claimant must prove the existence of a borrowing agreement between the parties. In practice, chat records or audio recordings mentioning "buying a house under your name" or "transferring ownership to you in the future" combined with transfer receipts corresponding to each payment can form a complete chain of evidence. Only when there is a single transfer without other corroborating evidence, the case is usually handled as a creditor-debtor relationship, and the court will order the return of the money rather than the house.

Q2: If the house is registered under the other party's name, who does it legally belong to?

In terms of external relations, registration shall prevail: According to Article 209 of the Civil Code, real estate rights shall not take effect without registration. The registered party is the nominal property owner, and his/her acts of sale or mortgage may result in the acquisition of rights by bona fide third parties. In terms of internal relations, the contract of borrowing a name shall be handled in accordance with the law: If the agreement of borrowing a name is established, the registered party shall bear the contractual obligation to cooperate with the transfer of ownership, and the actual investor may request continued performance; if the registered party disposes of the property without authorization and causes the transfer of ownership to be impossible, the investor may claim compensation for losses. In short, registration determines who owns the house externally, and the contract determines who has the right to request the transfer of ownership between the parties. The two types of relations cannot be confused with each other.

Q3: If the registered relatives or friends change their mind and refuse to acknowledge the loan in their name, what should I do?

First, gather evidence before filing a lawsuit. The first step is to sort out the evidence of investment and ownership: transfer receipts, deed tax invoices, renovation contracts, property water and electricity bills, and the whereabouts of the original property ownership certificates. The second step is to fix the evidence of consensus: historical chat records, emails, audio recordings, and witnesses present at the scene. If necessary, require the other party to confirm in writing or sign and notarize an agreement. The third step is to promptly file a lawsuit for contract disputes if no agreement is reached, requesting to confirm the borrowed name relationship and ordering cooperation in transferring ownership, and applying for property preservation to seize the house. Generally, the right to ownership does not lapse with the passage of time, but the timing of the house being disposed of or seized directly determines the outcome. It's important to act quickly rather than slowly.

Q4: If the house purchased under someone else's name is sealed off by the creditor of the registered party, can I file an objection to the enforcement?

It is possible to raise an objection to the execution by a third party, but the outcome is uncertain. According to the "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Objections and Reconsideration Cases by People's Courts" (implemented on May 5, 2015), a third party may raise an objection to the right claimed by the execution target. The actual investors who purchase houses under someone else's name often claim to exclude the execution in the name of the true right holder. However, courts across the country have different opinions on whether the relationship of purchasing houses under someone else's name can resist the monetary creditor of the registered party. Usually, they judge based on factors such as whether the purchase under someone else's name is to evade purchase restrictions, whether the investment and possession facts are solid, and the time sequence of the seizure and the purchase under someone else's name. If the objection is rejected, the party may file a lawsuit against the execution within 15 days from the date of receiving the ruling, and the strength of the evidence needs to be evaluated on a case-by-case basis.

Q5: Is it still possible to sign a borrow-name agreement now? What should I pay attention to?

If the registration party is willing to cooperate, it is always valuable to sign the supplementary agreement at any time. It is recommended to do three things: list the location of the house, the composition of the investment, the respective rights and obligations, and the conditions for transfer of ownership, and the liability for breach of contract; have the registration party's spouse sign and confirm it together to prevent future disputes over marital joint property; and arrange for notarization or witnessing by a lawyer, and keep the images of the signing process. If the other party is uncooperative, don't wait any longer. Sue for ownership confirmation and apply for preservation as soon as possible. The settlement reached during the litigation should also be converted into a court mediation agreement or judgment. A privately signed agreement alone is not enough to resist the risks of subsequent disposal and seizure.

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