Jinan and other cities have implemented a new model of “transfer with mortgage” for second-hand housing: there is no need to repay the loan in advance, and the old loan can be repaid with a new loan | Daily Economic News

For the past 16 years, Wen Qian, who has been working as a real estate agent in Lixia District, Jinan City, has to wait almost every time for clients to ask relatives and friends to raise money, or to raise bridge funds from a financing company to release the real estate certificate before he can sell his name. ‘s real estate.

Today, this situation will change.

On the morning of August 17, the Jinan Municipal Party Committee and Municipal Government held a press conference announcing the innovative launch of the second-hand housing “transfer with mortgage” registration model. For mortgaged properties that are to be listed for trading, the transfer can be completed without first returning the original mortgage. Mortgage, issue new loans. “Transfer with mortgage” has been successfully piloted in ICBC, China Construction Bank, Bank of Beijing and other banks, and will be fully implemented in the city’s second-hand housing market.

Du Jiangang, Secretary of the Party Committee and Director of the Jinan Real Estate Registration Center, said at the press conference that such a move has greatly reduced transaction costs and can comprehensively resolve transaction risks.

The “Daily Economic News” reporter noticed that since the beginning of this year, many cities in China have tried second-hand housing “transfer with mortgage” business. In addition to Jinan, there are Qingdao in Shandong, Zhuhai in Guangdong, Kunming in Yunnan, Wuxi in Jiangsu, Jinhua in Zhejiang and so on. The innovation of Jinan is that, in conjunction with the Bureau of Natural Resources and Planning, the Housing Provident Fund Center, banks, and notaries, a “deposit account” was introduced at the notary office, in order to speed up the second-hand housing transaction process and “repay old loans with new loans”. The implementation of the new process of “transfer with mortgage” provides policy guarantees.

Source: Jinan released official micro

Shorten the second-hand housing transaction process

Wen Qian works in a large domestic real estate brokerage company with a store in Lixia District, Jinan City. On August 17, he introduced to reporters by phone that in the past few years, when selling second-hand houses in Jinan, homeowners had to experience the “trouble” of either pooling money to pay off bank loans or borrowing from financial companies.

“The release funds are not a small amount. The bridge funds released by the financing company will charge interest to the homeowner according to the number of months.” Wen Qian said that the financing agency that cooperates with his company has a loan interest rate of up to 2.5% and borrows 1 million yuan. Yuan, the monthly handling fee is about 25,000 yuan, “and it is in the case that the bank has successfully given the real estate certificate.”

Although after the official implementation of the Civil Code, according to Article 406, “during the mortgage period, the mortgagor may transfer the mortgaged property”, in many cities, in order to protect the creditor’s rights, when applying for a second-hand housing loan, the bank agreed to buy a house. People are not allowed to take mortgage transfer.

According to Du Jiangang, Jinan’s introduction of “transfer with mortgage” for second-hand housing means transferring ownership with mortgage and putting the release of mortgage at the last link. This adjustment brings benefits in two aspects.

On the one hand, the traditional model requires that the mortgage be released before the property can be transferred. If the mortgage is released, the repayment must be made. If the buyer needs a loan to buy a house, he must first go through the transfer and mortgage before the bank can release the loan. In this case, it is impossible for the seller to repay the loan with the buyer’s money, so he must raise bridge funds, so an additional A lot of expense. The “transfer with mortgage” model uses the buyer’s bank loan to repay the seller’s bank loan without raising bridge funds and reducing transaction costs.

Source: Jinan released official micro

At the same time, under the traditional process, there are many links and a long time. Once there is an economic dispute between the buyer and the seller, the court seals up the house, which will have an adverse impact on the entire transaction. The new model is that the buyer does not need to release the mortgage first, and the buyer can get the house by depositing the house payment into the deposit account. If there is a problem with the transfer, the house payment can be returned in the same way, which maximizes the protection of the interests of both parties and minimizes risks. After the implementation of the new process, buyers and sellers do not need to run errands, and the processing time is reduced from the original ten days to 1-3 working days.

The introduction of notarized “withdrawal account” is one of the important innovative links in Jinan. Feng Peiming, Secretary and Director of the Party Branch of the Qilu Notary Public Office, said at the press conference that the Notary Public Office is a deposit institution stipulated by law, and the deposit and withdrawal are divided into repayment deposit and guarantee deposit. The buyer and seller will simultaneously sign the deposit agreement and power of attorney when signing the sales contract. The buyer will deposit the down payment and the buyer’s bank loan to the deposit account of the notary office. After the real estate transfer registration is completed, the notary office will deposit the above money into the seller’s bank. The account is used to repay the seller’s outstanding loan, and the remainder is credited to the seller’s personal account.

Several cities have implemented

In fact, Jinan is not “the first to eat crabs” for the measures of “transferring with mortgage” in second-hand housing transactions.

According to the official information platform of the Zhuhai Municipal Government Office of Guangdong Province, in February this year, Zhuhai Real Estate Center launched a new five-in-one model of “transfer with mortgage” for second-hand housing transactions, allowing home buyers to “just go to the bank” to Complete the “five things” of foreclosure, release of mortgage, transfer of property, loan and mortgage.

Sign a tripartite fund supervision agreement through the buyer, the seller and the bank, stipulating that after the first registration of the mortgage right of the seller’s loan bank is completed, the house payment will be directly transferred from the fund supervision account to the seller’s loan repayment account, and the remaining funds will be transferred to the seller’s personal bank. account. Taking a property valued at 10 million yuan as an example, based on 70% of the loan amount and the original 1-month loan period, the seller can directly save 150,000-200,000 yuan in financing costs for “foreclosure”.

In June this year, the first second-hand housing “transfer with mortgage” mortgage loan business in Jinhua City, Zhejiang Province was launched at the Jinhua Bank Municipal Sub-branch, realizing the “three-in-one” processing of second-hand housing transfer registration, mortgage cancellation registration, and mortgage re-registration. The Jiangyin City Real Estate Registration Center under the jurisdiction of Wuxi City, Jiangsu Province has also completed the first mortgage transfer business of individual stock houses in Wuxi, realizing the “three-in-one” processing of stock house sale transfer registration, mortgage change registration, and first mortgage registration.

It is understood that Jiangyin City Real Estate Registration Center, together with Jiangyin City Housing and Urban-rural Development Bureau, Wuxi City Housing and Property Financing Guarantee Co., Ltd. and other departments, launched the “Anjubao” livelihood project to facilitate second-hand housing transactions and promote an active trading market.

Zhang Chunguang, senior lawyer of AllBright Law Firm, said in a written interview with a reporter from “Daily Economic News” on the afternoon of August 17 that houses can be transferred with mortgages, which is a major “innovation” of the “Civil Code”, namely the “Civil Code”. It is recognized that the mortgage right has retroactive power, which is the most essential difference between the Civil Code and the previous laws and judicial interpretations on the transfer of mortgages. On the basis of protecting the mortgagee, the liquidity of the mortgaged property is increased.

However, Zhang Chunguang also mentioned that “transfer with mortgage” means that the mortgagee remains unchanged, the mortgaged property remains unchanged, and the ownership changes on this basis. The legal risk that a house seller needs to pay attention to is that he is no longer the owner of the house, but he is still a debtor, and the bank’s money has to be repaid by himself. If the house has some circumstances that trigger early repayment (such as the new house buyer fails to renovate in accordance with the relevant regulations, resulting in the collapse of the house, etc.), the seller will face the risk of the loan expiring early.

The buyer of the house needs to pay attention to the fact that if the seller fails to repay the loan as agreed, the bank will take legal procedures to auction the house, and the buyer’s ownership cannot be opposed to the bank’s mortgage. As a result, the house seller faces the legal risk of the house being auctioned off judicially, losing ownership and being evicted from the house.

The second-hand housing market is sluggish

Behind the push for “transfer with mortgage” measures for second-hand houses is the reality that second-hand house transactions have been sluggish for a long time.

According to data from the China Index Research Institute, the average price of second-hand housing in 100 cities nationwide was 16,012 yuan per square meter in July this year, down 0.09% month-on-month and 0.07 percentage points higher than in June; up 0.35% year-on-year, 0.52 percentage points lower than in June percentage point. A total of 69 cities saw a month-on-month decline in second-hand housing prices, an increase of 11 from June.

Data source: Middle Finger Research Institute

Data from the Shell Research Institute also showed that the second-hand housing climate index of Shell 50 cities in July fell by 1 compared with June, indicating that the expectations of owners are still weak.

According to the latest 70-city housing price index released by the National Bureau of Statistics, the price of second-hand housing in Jinan, Shandong fell by 0.2% month-on-month and 3.0% year-on-year in July. Since September last year, as of July this year, the price of second-hand housing in Jinan has dropped for 11 consecutive years. In July, second-hand housing prices in Qingdao rose 0.3% month-on-month, down 1.6% year-on-year; Yantai rose 0.9% month-on-month, down 2.5% year-on-year.

Regarding Jinan’s introduction of the “deposit transfer” measure for second-hand housing, Yan Yuejin, research director of the Think Tank Center of the E-House Research Institute, pointed out to the “Daily Economic News” reporter through WeChat on the afternoon of August 17, “From the current national cities, some cities’ The policy is still lagging behind a little, it just stays in the process of buying and selling registration at the same time, and the real problem, that is, how to make the seller pay the loan without raising money, has not really been solved. This time Jinan seems to be a second-hand house transaction transfer and The registration policy is actually a policy to speed up the circulation and transaction of second-hand housing, which reflects the policy innovation of reducing the transaction cost of second-hand housing and activating second-hand housing.”

(At the request of the interviewee, Wen Zhongqian is a pseudonym)

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Source of cover image: Photo Network-500615603




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