China News Network, April 4 (Zhongxin Financial Reporter Zuo Yukun) The transaction process and cost of second-hand housing have ushered in major changes.
In the traditional concept of trading, "one hand to pay, the other hand to deliver" is normal. However, when it comes to the sale and purchase of second-hand houses, there is often the problem that the seller has not paid off the purchase loan. Is there a more efficient, safe, and low-cost way to "redeem the property" through a third party?
On the basis of the active exploration of real estate "transfer with mortgage" services in many places, the two departments have issued documents to clearly and comprehensively promote "transfer with mortgage", and this model will also be promoted on a larger scale and to a greater extent.
Infographic: Buildings in the urban area. Photo by China News Agency reporter Wang Dongming
New Deal Released, Helping "Xiaoyang Chun"
"Golden Three Silver Four" is considered to be one of the traditional peak seasons for property trading. According to the monitoring data of Zhuge Data Research Center, in March 2023, the average price of the first-tier city market continued to rise, and the average price of the second-tier and third- and fourth-tier cities declined.
Chen Xiao, a senior analyst at Zhuge Data Research Center, said that looking forward to the future market, how hot the market will be in the second quarter also depends on whether there is substantial favorable policy support in the future, and it is difficult to support the long-term recovery of the market by relying on the previous backlog of demand.
The good news came quickly. Recently, the Ministry of Natural Resources and the China Banking and Insurance Regulatory Commission issued the Notice on Coordinating the "Transfer with Mortgage" of Real Estate to Facilitate the Services for the People and Enterprises (hereinafter referred to as the "Notice"), making comprehensive arrangements for the coordinated "transfer with mortgage" of real estate.
This also means that "transfer with escort" has moved from a local pilot to a nationwide and normalized comprehensive promotion.
According to the monitoring data of the Middle Index, since 2022, more than <> cities across the country have issued a "transfer with charge" policy for second-hand housing, including provincial capitals such as Shenzhen, Jinan, Dalian and cities with separate plans. Moreover, Tianjin, Shanxi, Shandong, Jiangsu, Zhejiang, Fujian, Hubei and other provinces have fully carried out the "transfer with mortgage" of second-hand houses.
After the issuance of the Circular, Beijing followed suit. According to a notice jointly issued by the Beijing Banking and Insurance Regulatory Bureau, the Beijing Municipal Housing and Urban-Rural Development Commission and other departments, from March 3, residents no longer need to settle their existing mortgage loans in advance when selling their houses in Beijing, and can directly register the transfer of housing ownership without the original mortgage right being released, and buyers and sellers can borrow from different banks to reduce the transaction costs of residential housing.
Compatible with interbank loans is an innovative point in Beijing's implementation of the "transfer with collateral" policy. "In terms of coverage of home buyers, Beijing's approach is more in line with different types of home buying and lending needs." Yan Yuejin, research director of the E-House Research Institute, believes that cities have made efforts in the process design and infrastructure construction of "transfer with escort", which will help better implement this model.
Accelerate transactions for the benefit of buyers and sellers
"There are many cases where the original owner's mortgage is sold before it is paid off, especially during peak seasons such as school district house replacement, and the guarantee company will receive a large number of 'foreclosure' business." Mr. Li, a real estate agent, told Zhongxin Financial Reporter.
According to him, "redemption of buildings", also known as "crossing the bridge", mainly has two drawbacks: first, the procedures are complicated, and it is necessary to wait for the release of the deposit before trading, and it takes less than a week to wait, and it cannot be completed in half or even several months; Second, the cost is also high, and the daily interest must be calculated in the process of releasing the mortgage, plus the "handling fee" to the guarantee company, and if it is smooth, it often requires about 3 points of interest.
"At present, the overall inventory of the second-hand housing market is still very high, and 'transfer with charge' is definitely a measure that can save time and capital costs." Mr. Li believes that in addition to accelerating the circulation of existing listings, I believe that the number of listings will also increase again.
Infographic: Vehicles pass in front of the first floor. Photo by Zhang Yun, reporter of China News Agency
Mr. Gao, who is in Zhejiang, has just completed the procedures for "transfer with escort". He told reporters that he originally wanted to repay the mortgage in advance, but after making an appointment, he found that he had to wait for a long time, and later learned the model of "transfer with mortgage", so he successfully sold his house that had not paid off the mortgage.
Mr. Gao introduced that the "transfer with charge" is very fast, the transfer is completed in a few working days, the operation process is relatively simple, the local housing bureau will have a fund supervision account, the allocation of funds, it is relatively safe, and it is calculated according to the current new interest rate, and the buyer will not suffer a loss.
"I think this is good for both buyers and sellers of second-hand houses, the transaction is simpler, there may be many people who were hesitant before decide to trade, and the market may also become active." He believes that with the advancement of more support policies, the model will become more perfect.
Carefully verify and be alert to potential risks
"The transaction method of 'transfer with charge' can reduce transaction costs and transaction risks to a certain extent, simplify the second-hand housing transaction process, shorten the transaction cycle, activate the second-hand housing trading market, and promote the accelerated release of demand for house replacement, thereby further forming a certain support for the new housing market." Chen Wenjing, director of market research at the China Index Research Institute, believes that the further promotion and expansion of policies may have a positive impact on the current real estate market.
Of course, new models also create new risks. The aforementioned "Circular" also specifically mentioned that in the practice and exploration, local governments have mainly formed three "mortgage transfer" models, such as the mortgage right combination model, the new and old mortgage rights segmentation model, and the mortgage right change model. Especially when buyers and sellers are involved in the business of different lenders, all localities are encouraged to actively introduce advance notice registration, and through the advance notice registration system, prevent risks such as "one room, two sales" and mortgage rights from being suspended.
"The technical level is relatively simple. Through advance notice registration and fairness, transactions can be locked in advance, preventing 'one house and two sales', as well as preventing mortgage rights from being frustrated, and preventing the inability to obtain property rights after applying for a loan. In addition, financial and real estate can develop and improve the transaction process according to their respective requirements. Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Urban Planning Institute, believes that the three models proposed in the Notice are actually three feasible ways to protect the rights and interests of all parties by combining different demands.
Wang Yuchen, director of Beijing Jin Law Firm, also suggested that for buyers, on the basis of verifying that the house to be purchased can be "transferred with mortgage", it is necessary to pay attention to process control, refine all processes involved, and the banks or mortgagees involved must communicate and implement in place to avoid some unnecessary time gaps; As a seller, you also need to verify the buyer's personal credit in advance, verify the buyer's future loan ability in advance, avoid problems with subsequent loans, and cannot be paid back in time. (End)