According to the Civil Code, in general, ownership has priority over mortgage. Where a real estate owner establishes a mortgage, the mortgagee's exercise of the right shall not damage the rights and interests of the owner.
 Legal basis
 Article 209 of the Civil Code of the People's Republic of China, the establishment, alteration, transfer and extinction of the real property right shall become effective after being registered according to law; Without registration, it shall not take effect, except as otherwise provided by law.
 The ownership of natural resources legally owned by the state may not be registered.
 Article 241 of the Civil Code of the People's Republic of China [The owner establishes another real right] The owner has the right to establish a usufructuary right and a real right for security on his real estate or chattel. When exercising rights, the usufructuary right holder and the security right holder shall not damage the rights and interests of the owner.
 Article 394 of the Civil Code of the People's Republic of China [Definition of Mortgage] In order to guarantee the performance of the debt, if the debtor or a third person does not transfer the possession of the property and mortgages the property to the creditor, if the debtor fails to perform the due debt or the circumstances agreed by the parties to realize the mortgage occur, the creditor has the right to priority in the payment of the property.
 The debtor or the third party mentioned in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides security is the mortgaged property.
 Article 410 of the Civil Code of the People's Republic of China [Realization of the mortgage right] If the debtor fails to pay its due debts or the circumstances agreed by the parties concerned for the realization of the mortgage right occur, the mortgagee may negotiate with the mortgagor to convert the mortgaged property into money or have priority in compensation from the proceeds of auction or sale of the mortgaged property. If the agreement harms the interests of other creditors, other creditors may request the people's court to cancel the agreement.
 If the mortgagee and the mortgagor fail to reach an agreement on the way to realize the mortgage, the mortgagee may request the people's court to auction or sell the mortgaged property.
 Where the mortgaged property is converted into money or sold off, reference shall be made to the market price.