Legal basis: Civil Code of People's Republic of China (PRC).
Article 402 Where the property specified in Items 1 to 3 of the first paragraph of Article 395 of this Law or the building under construction specified in Item 5 is mortgaged, the mortgage registration shall be handled. The mortgage is established at the time of registration.
Article 403 Where a chattel is mortgaged, the mortgage right shall be established when the mortgage contract comes into effect; Without registration, you may not be able to fight well-intentioned third parties.