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The house sales contract without certificate will not be absolutely invalid.
Item 6 of Article 37 of the Urban Real Estate Management Law only stipulates that "the real estate that has not been registered and obtained the ownership certificate according to law shall not be transferred", and does not stipulate that the contract without the ownership certificate shall be invalid. Article 19 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Concerning Disputes over Commercial Housing Sales Contracts stipulates that "the commercial housing sales contracts or the Regulations on the Administration of Urban Real Estate Development and Operation" Article 33 If more than one year has passed since the expiration of the time limit for housing ownership registration specified in Article 33, and the Buyer fails to obtain the housing ownership certificate at the expiration of the following time limit due to the Seller's reasons, the Seller shall be liable for breach of contract, unless otherwise agreed by the parties:
(1) The time limit for registering the ownership of the house as agreed in the commercial housing sales contract;
(2) If the subject matter of the commercial housing sales contract is a house that has not been built, 90 days from the date when the house is delivered for use;
(3) If the subject matter of a commercial housing sales contract is a completed house, 90 days shall be counted from the date of conclusion of the contract. " These two articles clearly tell us that when the housing sales contract is signed, the contract is valid even though the ownership of the house has not been registered.
Article 9 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Contract Law of the People's Republic of China (I) (repealed as of January 1, 2021) and Article 2 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Concerning Disputes over Commercial Housing Sales Contracts, If the seller has registered to obtain the house property certificate or has met the conditions for registering to obtain the house property certificate before filing a lawsuit, the sales contract can be deemed as valid. Otherwise, the house sales contract will be deemed invalid. Therefore, if the seller of resettlement housing and fund-raising housing can handle the property certificate, the housing sales contract should be recognized as valid.
In Article 728 of the Civil Code, if the lessor fails to notify the lessee or there are other circumstances that hinder the lessee from exercising the right of preemption, the lessee may request the lessor to assume the liability for compensation. However, the validity of the house sales contract concluded between the lessor and a third party shall not be affected.