[Direct answer]For limited-price housing in Beijing, if the ownership certificate (or the tax payment receipt for deed tax) is issued less than five years from the date of purchase, it is not allowed to be traded on the market; if it is transferred after five years, the transaction shall be carried out after paying the equivalent of the land revenue in accordance with the regulations. For sales contracts signed before the five-year period, judicial practice generally holds that it is impossible to complete the transfer of ownership during the restriction period, and the validity of the contract and the compensation for its termination shall be adjudicated on a case-by-case basis. The transaction period, the payment of the revenue, and the eligibility to purchase are the three preconditions for the sale of limited-price housing.

1. Problem background and typical scenarios

Limited-price housing is a type of policy-based housing, and its circulation is subject to administrative restrictions. As a result, there are two common types of disputes in the sale and purchase of such housing: First, the seller wants to transfer the property after it has been held for five years, but the buyer signs the contract and makes the payment in advance, only to encounter obstacles in the transfer process due to the time limit. Second, when the transaction occurs after the five-year holding period, there are unclear provisions regarding who should bear the land appreciation tax and what base rate should be used for calculation, which often leads to disputes after the transaction. Another type of dispute involves purchasing limited-price housing under someone else's name—the person whose name is used to purchase the property does not qualify for such policy-based housing, and the risks involved are far greater than those of purchasing ordinary commercial housing under someone else's name.

II. Key points of contention

First, the calculation of the restriction period. It starts from the time of obtaining the house ownership certificate or the tax payment receipt of the deed tax, and if the two are inconsistent, the earlier one shall be taken as the basis for verification according to current regulations. Second, the validity and performance of the contract. The sales contract signed during the restriction period is not necessarily invalid. Most judgments determine that the contract is valid, but the transfer cannot be completed during the restriction period. The buyer can claim for continued performance after the expiration of the period, or choose to rescind the contract and claim compensation. Third, the responsibility for the proceeds of the sale. For transfers after five years, the equivalent land proceeds to be paid shall be calculated according to the statutory ratio of the price difference between the price of commercial housing in the same area at that time and the purchase price of the limited-price housing. The amount is not small, and who will bear it must be specified in the contract.

III. Professional analysis by Henglue Lawyers

The key points of transaction for limited-price housing are divided according to the transaction stages. **Before signing the contract**: - Verifying the "Three Certificates and Three Qualifications" — the acquisition time of the property certificate or deed tax receipt (calculating the holding period), the seller's purchase contract and obligation to make up for the down payment (calculating the cost), and the buyer's own eligibility for purchasing the property (under Beijing's purchase restrictions, eligibility must also be verified). - For properties that have "almost reached five years of ownership", the contract should explicitly stipulate the conditions for transfer of ownership and the breach of contract liability for delayed performance, transferring the risk of holding period to the contract terms. **During signing the contract**: - Specify the party responsible for paying the land transfer fees, whether to calculate based on the transaction price or appraisal value, and the division of taxes and fees, all of which should be included in the contract. - Simultaneously agree on fund supervision and delivery conditions to prevent "paying first and then encountering obstacles". **In case of disputes**: - If the transfer cannot be completed within the restricted period, buyers have two options: - Claim that the contract is valid and require the breaching party to fulfill obligations after the expiration of the period. - Terminate the contract and claim damages (price difference losses, renovation costs, and capital occupation). In judicial practice, the determination of price difference losses is based on fault and evidence. **Special note on the risk of purchasing limited-price housing under someone else's name**: - Purchasing policy-based housing under someone else's name not only faces the same transfer obstacles as regular purchases, but may also be deemed invalid or untransferable due to violating public housing policies. All previous investments are borne by the borrower, and such arrangements are generally "strongly discouraged" in professional opinions. Beijing's public housing system also includes shared-equity housing and affordable housing, each with different holding periods, income payment requirements, and transaction restrictions. Before purchasing, it is essential to verify current regulations for each housing type to avoid "discovering after signing that the property cannot be sold".

IV. Practical suggestions and legal basis

The first step is to verify the time limit: Retrieve the property ownership certificate or the tax payment certificate for deed tax, and calculate the five-year restriction period in accordance with current regulations. The second step is to check qualifications: Confirm both the buyer's purchase qualifications and the seller's obligation to make up for the payment arrears. The third step is to ensure comprehensive contract terms: Include provisions on the assumption of the purchase price, the date of the transfer conditions, breach of contract liability, and fund supervision in the contract. The fourth step is to handle disputes: Evaluate the disputes related to the time limit based on two options—either continue to perform the contract or terminate it and seek compensation—and prioritize the assessment of evidence and the calculation of the price difference. Main legal basis: - The "Beijing Management Measures for Limited-Price Commodity Housing (Trial)" and current regulations on the transaction of affordable housing in Beijing; - The provisions on contract effectiveness, performance, and breach of contract liability in the Contract Chapter of the Civil Code of the People's Republic of China (effective as of 2021); - The specific time limits and income ratios shall be subject to the currently effective regulations in Beijing.

5. Henglu Law Firm's Reminder

The core variables of the transaction of limited-price housing are the tenure and the proceeds from the sale: the tenure determines whether the transfer of ownership is possible, and the proceeds from the sale determine the transaction cost. Before these two variables are explicitly stated in the contract, don't make large payments easily; for houses that are "almost five years old", it's even more important to keep track of the exact date. If there are disputes involving the sale of public housing, you can seek help through legal channels.Real estate transactions and construction projectsFor those who need a comprehensive solution for services involving buying a house under someone else's name and transferring ownership through litigation, they can refer to the special topic on the sale of resettlement houses in this batch. For those who need help with purchasing qualifications and the termination of purchase contracts, they can seek assistance accordingly.Divorce litigation and family disputesFrom the perspective of dividing the marital home in a divorce, those interested in claims for breach of contract can pay attention to itSpecialised legal servicesFor reference, the following content relates to the enforcement and recovery of defaulted payments in the plate sectorCreditor's rights and debts, and enforcement cases板块。

VI. Frequently Asked Questions

Q1: When does the five-year period start from?

Generally, it is calculated from the date of obtaining the house ownership certificate or the tax payment receipt for the deed tax. The specific criteria should be checked according to the current regulations in Beijing. If the time of the two certificates is inconsistent, it shall be determined in accordance with the rules.

Q2: Is the sales contract signed during the restriction period valid?

Most arbitrators determine that the contract is valid, but the transfer of ownership cannot be completed during the restriction period. The buyer can wait until the expiration of the period to perform or waive the claim, and the effectiveness of the case shall be subject to the arbitrator's decision.

Q3: Who will bear the land transfer fee?

There is no mandatory distribution in law, and it shall be handled in accordance with the contract agreement. If there is no agreement, it shall be handled in accordance with the transaction customs and the principle of fairness. When signing the contract, it is necessary to specify the responsible party and the calculation method.

Q4: Can I transfer the ownership of a limited-price housing unit purchased under someone else's name to my own name?

The risk is extremely high. The superposition of policy-based housing eligibility restrictions and disputes over the validity of borrow-name agreements make it much more difficult to transfer ownership than for ordinary commercial housing. It is strongly not recommended to make such arrangements.

Q5: Can I sell it freely once I've owned it for five years?

It is also necessary to meet the conditions such as paying the land revenue, the buyer's qualification to purchase a house, and ensuring that the house is not subject to seizure or mortgage. After verifying each item, the transaction can proceed.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are 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

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.