China News Service, February 20 (China News Financial Reporter Zuo Yukun) Good news: You can "buy a house" in Beijing with only 26,000 yuan.
Bad news: You can only buy 2% off.
When buying real estate, everyone will default to selling it at the “set” price. But recently, the auction information of a 2% share of a commercial building in Beijing has attracted attention. What's up with homes sold by share? Can I live in it?
Image source: Alibaba Assets official website.
Only 2% of properties are sold
According to the information displayed on the Ali Assets Judicial Platform, No. 503, Floor 5, Building 5, Donglaodian, Mentougou District, Beijing (2% share), the auction ended a few days ago and was finally sold at a price of 26,166.6 yuan.
Judging from the pictures, this property can be described as a typical "old and broken" property. The auction information shows that its construction area is 59.11 square meters and it is planned for residential use. Calculated based on a 2% share, it is 1.1822 square meters. If the ratio is expressed in terms of area, it is roughly the size of a coffee table in the living room.
Auction information also shows that 2% of this property has been auctioned multiple times. For example, in an auction on October 17, 2023, a buyer bought it for 32,708.24 yuan; but it was later determined on October 30, 2023 that the transaction had not been fulfilled.
On the 19th, reporters from Sino-Singapore Finance repeatedly called the Beijing Pinggu District People’s Court, the asset disposal unit, but failed to get through.
Its relevant staff previously responded to the media saying that the 2% share does not have the absolute right to use the house, but it will be reflected in the house book. If you can't move in, you can sue the person who owns 98% of the property and ask for that part of the equity to be replaced in cash, but this will have to be sued separately.
Screenshot of historical auction information for this property.
How are the rights and interests distributed?
Have houses with "fractional share" ownership appeared on the auction market before? China News Finance searched for "share" and other related words on the above-mentioned foreclosure platform and found more than 200 pieces of relevant information, including very detailed share ratios such as "22/24".
Among them, an auction of "50% share of 2104, 21st floor, Building 16, Yongtai Garden, Haidian District, Beijing" triggered a certain degree of discussion in 2022. Information at the time showed that neither of the two registered bidders were the first purchasers. and everyone.
"It is relatively rare for houses to be sold by shares in China, especially in first-tier cities like Beijing." Lawyer Wang Yuchen, director of Beijing Jinliu Law Firm, told Sino-Singapore Finance. However, in some special cases, such as inheritance disputes between co-owners of a house, When an agreement cannot be reached due to divorce or other reasons, the property may be sold by shares.
Regarding the question of how much equity this 2% share can bring, Wang Yuchen explained that owning a 2% share of a house means legally owning 2% of the property, which usually includes the right to use, the right to income, the right to dispose of, and the right to inherit. .
"But the exercise of these rights is usually restricted by the rights and interests of other co-owners, especially when the ratio is so low. For example, it may not be possible to decide independently to carry out large-scale renovation or sale of the property." Wang Yuchen said.
Some netizens speculated whether home buyers might consider settling in the area, housing in a school district, etc.?
"Brother Real Estate" who has been paying attention to the home buying circle for a long time told China News Finance reporter: "Assuming that you own 1% of the property rights in a popular school district, there is a high probability that you will not be able to settle down or go to school; however, in some areas, you can enroll in school, but you will not be able to go to school. The last one."
So can homebuyers actually live in the rooms? "Brother Demo" believes that this is inconclusive and needs to be negotiated with the person who owns 98% of the shares, because both people are "shareholders" of this house.
"Generally, two-thirds is used as the criterion, which means whoever has more than 67% of the property rights will have priority to live here. In addition, if the house is rented, it stands to reason that the rent should also be distributed proportionally." He also said that this 2% share can also be circulated separately, that is, when the house is sold for the second time, consensus does not have to be reached.
Image source: Alibaba Assets official website.
Are there risks?
"I don't think this is equivalent to 'buying a house' in Beijing, because you have not obtained the complete right to use the property, and the actual use value in life is very limited." Wang Yuchen believes that buying property by share is legally allowed, but in Real life may bring about a series of complex problems, especially in dealing with the relationship with co-owners.
"If there is a subsequent dispute, for example, the co-owners cannot reach an agreement on the use, renovation or sale of the property, it may need to be resolved through legal means such as litigation. In this case, the relatively worry-free approach is for one party to use the market Redeem the shares of other co-owners at a reasonable price." Wang Yuchen said that buyers should fully evaluate possible risks and subsequent problems that may arise.
Foreclosure houses refer to houses that are forced to be auctioned by the court. Since the start of online foreclosure transactions in 2017, the number of foreclosure transactions has increased year after year. The "2023 National Foreclosure Market Monitoring Report" released by the China Index Research Institute shows that in 2023, the total number of foreclosure homes nationwide will reach 796,000.
Among them, there are also many "weird" foreclosed properties, such as a house with 6 certificates, a property with 2 "owners", and "1 yuan transaction" gimmicks, etc. Industry insiders also reminded of the risks commonly encountered in foreclosures such as house ownership, related taxes and fees, and house vacancies.
"You must carefully check the listed property information, and fully communicate with the judges and personnel in charge of the auction. Household registration and other issues must be verified at the local police station, and the property must be confirmed and understood on-site." Wang Yuchen reminded that you can also go through China The Judgment Documents Network and the Supreme Court's Enforcement Information Network can query the relevant judgment documents and enforcement information of the original homeowner, as well as whether there are any disputes or other issues regarding the house. (over)