[Direct answer]In the Beijing area, inherited houses can be sold, but generally, it is necessary to first complete the inheritance registration and transfer the ownership of the house to the name of the inheritor before it can be put on the market for transaction. According to Article 230 of the Civil Code of the People's Republic of China (effective January 1, 2021), the right to ownership obtained by inheritance takes effect from the beginning of the inheritance; Article 232 also clearly stipulates that the disposition of such real estate without registration does not produce the effect of ownership, so the inheritor must first hold the inheritance certificate, effective judgment or mediation agreement, etc. to handle the inheritance transfer registration. For multiple owners, according to Article 301, the disposition must be agreed upon by more than two-thirds of the fractional co-owners or all the joint co-owners. It is recommended to first sort out the ownership and then sign a sales contract to avoid being held liable for breach of contract due to the inability to transfer ownership. For specific issues regarding real estate transactions, please refer to the relevant provisions.Legal services for real estate transactions and construction projects.
1. Problem background and typical scenarios
The disposition of inherited property is a frequent issue at the intersection of family affairs and real estate. Typical scenarios include: when an elderly person passes away and leaves behind a house, multiple children who inherit the property want to sell the house and divide the proceeds, but get stuck due to disputes over ownership shares or cooperation issues; when the inherited house is signed under contract with a buyer before it's registered under the name of the inheritor, the buyer may file a breach of contract claim due to the inability to transfer ownership; when the house involves special attributes such as affordable housing or purchased public housing, listing it requires meeting policy conditions like paying the supplementary purchase price or meeting the holding period; in remarried families, disputes over inheritance shares arise between children from previous marriages and their current spouses, leading to prolonged delays in property disposition. With active second-hand housing transactions in Beijing, it's particularly necessary to plan ahead as the process of listing inherited property involves completing inheritance notarization or litigation to confirm ownership rights, followed by transfer registration, which involves multiple steps and a lengthy timeframe.
II. Key points of contention
The dispute focuses on four points. Firstly, whether the sale can proceed without registration: the court tends to hold that although the sales contract signed before registration can be validly established, the actual performance must be completed before the inheritance registration, otherwise it will constitute an obstacle to performance, and the buyer can claim to rescind the contract or seek breach of contract liability. Secondly, the disposition of co-owned shares: if an individual heir sells the entire house without authorization, according to Article 301 of the Civil Code, the disposition of co-owned real estate requires the consent of the legal majority of co-owners. Otherwise, other co-owners can claim that the contract cannot be performed. Thirdly, properties with special attributes: there are eligibility and procedural restrictions for listing of affordable housing and central government-owned housing, which require prior confirmation from the competent authorities. Fourthly, occupancy and use fees: if some heirs exclusively occupy the house and refuse to distribute it, other co-owners can claim that the former should pay occupancy and use fees according to the rental standard.
III. Professional analysis by Henglue Law Firm
A dispute over the division of jointly owned property handled by Henglue Law Firm is quite representative. After the death of Wang Bin's parents, they left a house in Haidian District. In December 2022, the court ruled that Wang Bin and his sister, Wang Li, each inherited 50% of the shares. Later, Wang Li donated her share to her son, Zhang Xiaoqiang. Since July 1, 2020, Zhang Xiaoqiang has illegally changed the locks to occupy the house alone, resulting in Wang Bin being unable to rent out the property and generating multiple conflicts between the two parties, which even led to the police being called in. Wang Bin entrusted lawyers Xue Suhua and Wang Fangli from Beijing Henglue Law Firm to represent him, claiming that the house should be owned by Zhang Xiaoqiang, who should pay a depreciation fee. If he is unable to pay, the house should be auctioned and sold for a proportional division, and Zhang Xiaoqiang should pay an occupancy fee of 4,250 yuan per month starting from July 1, 2020. Zhang Xiaoqiang argued that he was unable to pay the depreciation fee and opposed the auction and sale of the house. The lawyers pointed out that fractional co-owners can request division at any time without an agreement, and if there are no conditions for physical division, the house can be auctioned and sold for a price distribution. Those who occupy the house solely should pay an occupancy fee equivalent to the rent. The court ruled in accordance with Articles 298,303 and 304 of the Civil Code that Zhang Xiaoqiang should assist in handling the listing approval and auction/sale of the house within 30 days, deduct the expenses after the sale, and each of them should receive 50% of the proceeds. He should also pay Wang Bin an occupancy fee of 192,000 yuan from July 1, 2020 to June 30, 2024. This case was handled by Beijing Henglue Law Firm.Xue SuhuaAttorney (Practice Certificate No.: 11101201211769926, subject to the certificate issued by the judicial administrative organ)Wang FangliThe lawyer (practice license number: 11101201911086939, subject to the certificate issued by the judicial administrative organ) acts as the agent. In the disposal of similar inherited and bequeathed properties, Henglue Law Firm has also assisted clients in removing obstacles to listing through rights confirmation and partition litigation on multiple occasions; where the property is obtained by bequest, it is also necessary to note that the clear expression of acceptance should be made within 60 days after knowing the bequest, so as to avoid losing the rights.
IV. Practical suggestions and legal basis
Legal basis: Article 230 of the Civil Code of the People's Republic of China (effective January 1, 2021) (The acquisition of property rights through inheritance takes effect from the commencement of inheritance); Article 232 (Property rights do not take effect unless registered before disposition); Article 301 (Disposition of jointly owned real estate requires the consent of more than two-thirds of the fractional co-owners or all co-owners); Articles 298 to 304 (Rules on division of joint ownership); Provisions on transfer registration procedures in the Interim Regulations on Real Estate Registration (effective March 1, 2015); Special-attributed properties must also comply with policies on the listing of housing reform and public housing. Practical suggestions: Before selling, first handle inheritance registration with the inheritance certificate, effective legal documents, or a joint application by all heirs; For multiple co-owners, sign the sale documents together and specify the distribution plan; For properties involving affordable housing, first confirm the listing conditions with the competent authorities; When signing contracts with buyers, truthfully disclose the ownership status and agree on a reasonable performance period; For disputed ownership, first litigate to confirm ownership or division before selling.
5. Henglu Law Firm's Reminder
The key to selling inherited property is to "first confirm ownership rights and then proceed with the transaction". Do not collect large deposits or handle online signing before completing the inheritance registration, to avoid being held liable for breach of contract due to inability to transfer ownership; for jointly-owned property, it is necessary to obtain the consent of all or a legally required majority of heirs. If necessary, use litigation to "monetize" the shares; for co-owners of exclusive property, timely claim possession and use fees to avoid further losses. When handling inheritance transfer registration in Beijing, the registration authority will verify the authenticity of the inheritance materials. Family materials involving wills, donations, and bequests are more complex, and it is recommended to seek assistance from a lawyer to sort them out. It is more economical to conduct a property ownership check of the family's real estate as early as possible than to litigate after a dispute arises. Inheritance ownership disputes can be resolved through mediation or litigation, depending on the specific circumstances.Legal services for inheritance and division of family assetsHandle it.
VI. Frequently Asked Questions
Q1: If the inherited house has not been transferred to my name yet, can I sign a sales contract directly?
The contract itself can be established, but its performance is subject to restrictions. According to Article 232 of the Civil Code, the disposition of real estate acquired through inheritance does not produce property rights effects unless it is registered. Therefore, the buyer cannot directly transfer the ownership from the name of the decedent. A common practice is to first handle the inheritance transfer registration with the inheritance certificate, effective judgment, or joint application of all heirs, and then sign the online transfer contract with the buyer. If the contract is signed without registration and the transfer cannot be completed on schedule, it may constitute a breach of contract. It is recommended to stipulate "completing the inheritance registration" as a prerequisite for performance in the contract and to allow sufficient time for handling the registration.
Q2: What materials are required to handle the inheritance transfer registration and sale?
Generally, the required documents include: the deceased's death certificate, proof of kinship, the inheritance notarization certificate or the court's effective judgment or mediation document, the original immovable property ownership certificate, the identity certificates of all heirs, and the original will (if there is one) and supporting verification materials; for the sale process, additional requirements include the sales contract and the buyer's qualification verification materials. If some heirs are uncontactable or uncooperative, the registration can be applied for unilaterally after obtaining the legal document through litigation to confirm ownership. The requirements of registration institutions in different regions vary slightly. Before handling the registration, it is recommended to check the list of required materials with the real estate registration window in Beijing first.
Q3: If I sell the house I inherited, will the tax fees be high?
When reselling inherited property, taxes such as value-added tax (VAT) and personal income tax (PIT) apply, while the deed tax is borne by the buyer. Regarding PIT, according to current policies, the holding period is calculated from the acquisition date of the original property. Properties that meet the "fully owned and only one property" condition are exempt from PIT. VAT is exempt if the original property has been held for more than two years since its acquisition. However, there are differences in policies regarding non-residential properties in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. Properties that do not meet the exemption conditions are subject to taxation based on the difference in value or a fixed assessment rate. Specific tax rates and exemption criteria are determined by the tax authorities. It is recommended to consult the tax window for a tax estimate before the transaction and to clearly specify the tax burden in the contract to avoid disputes after signing the agreement.
Q4: How long does it take from inheriting the property rights to putting it up for sale?
The process and timeline vary depending on the circumstances. For cases with no disputes and complete supporting documents, the inheritance notarization typically takes several weeks, and the transfer of ownership registration is generally completed within a few working days, after which the property can be sold online normally. For cases with disputes, litigation is required to determine ownership or conduct a partition. The first-instance ordinary procedure takes up to six months, and the simplified procedure takes up to three months to conclude. If there is an appeal, the total timeframe may exceed one year. In the aforementioned auction partition case handled by Henglue Law Firm, it took 30 days from filing the lawsuit to assisting with the auction, with the entire process taking months. It is recommended to sort out the inheritance materials as soon as possible, negotiate with the parties involved if possible, and allow sufficient time for the transaction to proceed smoothly.
Q5: If there are conflicts among the heirs and the house can't be sold, what should they do?
It can be handled in three steps: first, negotiate through a family meeting to clarify the share and distribution plan and sign a written agreement; if the negotiation fails, initiate a lawsuit for the division of jointly owned property in accordance with Articles 303 and 304 of the Civil Code, requesting compensation in the form of a discounted price or auction and distribution according to the share; if one party exclusively owns the property, they can also claim possession and use fees; after obtaining a valid judgment, apply for forced execution, and the court will assist in handling the listing approval and transfer formalities. In the aforementioned case handled by Henglue Law Firm, the court ordered the exclusive owner to assist in auctioning and selling the property and pay possession and use fees of 192,000 yuan, indicating that the judicial approach can effectively break the deadlock. For matters involving inheritance eligibility and the validity of bequests, the inheritance beneficiaries can consult lawyers for a comprehensive assessment.
The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Law Firm for specific cases.
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 limits. →Legal services for the purchase and sale of real estate·Attorney Xue Suhua·Beijing Henglu 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. In case of disputes, please consult a practicing lawyer in time.