Small property rights, the so-called "small property rights", refer to houses built on farmers' collective land without paying land transfer fees, and their property certificates are issued by township governments or village governments, so they are called "township property rights" and "small property rights". The so-called small property rights issued by the township government actually have no real property rights. This kind of house has no land use certificate and pre-sale permit issued by the state, and the purchase contract will not be filed with the State Administration of Land and Housing. The so-called title certificate is not really legal and effective.
According to the Land Management Law of the People's Republic of China, the land use right collectively owned by farmers shall not be sold, transferred or leased for non-agricultural construction. Rural homestead is collectively owned, and villagers only have the right to use homestead. The sale of houses by farmers to urban residents cannot be recognized and protected by law, so it is impossible to go through legal procedures such as land use certificate, real estate license and deed tax certificate. Therefore, rural property houses cannot be transferred or sold to a third party who is not a collective member. However, this does not mean that rural property houses cannot be transferred, but the objects of their transfer or sale are limited and can only be transferred and replaced within the "collective members".