I. Disputes over property rights
Other people's names are hung on the real estate license, which is easy to cause real estate disputes. The actual owner may face disputes over the ownership of property by the nominal person or his related person, resulting in the inability to exercise his rights and interests smoothly. In this case, both parties often need to resolve disputes through legal channels, which is time-consuming and labor-intensive, and the result is uncertain.
Second, debt commitment.
If the nominee registered his name on the real estate license, but did not actually contribute or enjoy any rights and interests, then in some cases, the nominee may be required to bear the debts related to the real estate. For example, if the actual owner can't repay the loan or debt generated by the property, the creditor can recover from the nominal owner. Therefore, the nominal person may be innocently involved in economic disputes and face financial risks.
Third, criminal responsibility.
In some extreme cases, the name of real estate may involve criminal responsibility. For example, the nominal owner and the actual owner * * * are involved in fraud, tax evasion and other illegal acts, or the nominal owner knows that the actual owner is using the real estate for illegal activities and fails to report it in time, then the nominal owner may be regarded as a * * * lawbreaker or a cover-up and face criminal charges.
Four. Other potential problems
In addition to the above direct legal consequences, the name of real estate may also bring other potential problems. For example, the nominal person may lose the preferential policy of purchasing the first suite; After the death of the actual owner, the nominal person may need to participate in complex procedures such as inheritance distribution; In addition, if the actual owner is involved in a lawsuit or an executed case, the nominal property may also be seized or auctioned by the court.
To sum up:
Real estate has great legal risks in name. In order to avoid unnecessary troubles and losses, it is recommended to keep true and accurate information when registering real estate. If it is really necessary to hold real estate or cooperate with others in other forms, it is recommended to clearly stipulate their respective rights and obligations and consult professional lawyers when necessary.
Legal basis:
People's Republic of China (PRC) Civil Code
Article 209 provides that:
The establishment, alteration, transfer and extinction of the real right of immovable property shall take effect after being registered according to law; Without registration, it will not take effect, except as otherwise provided by law.
"People's Republic of China (PRC) City Real Estate Management Law"
Article 6 1 stipulates that:
If a house is built on the land for real estate development obtained according to law, it shall apply to the real estate management department of the local people's government at or above the county level for registration with the certificate of land use right, and the real estate management department of the local people's government at or above the county level shall verify and issue the certificate of ownership of the house.