The Supreme Law introduced new regulations to clarify the qualification of buying a house by auction.

　　A few days ago, the Supreme People’s Court issued the Provisions on Several Issues Concerning the Qualification of Bidders in Judicial Auction of Real Estate by People’s Courts, which will take effect on January 1, 2022. According to the regulations, the people’s court will not allow the judicial auction of real estate organized by the people’s court if the bidder who is bound by the purchase restriction policy at the place where the real estate is located applies to participate in the auction. The boots of "full purchase restriction of French auction room" landed.

　　In the real estate market, French auction houses are favored by buyers because of their low prices. At the same time, some places and some houses are not limited to purchase, which makes many property buyers realize their dream of "having a home". But at the same time, some people regard the auction house as the last chance for real estate speculation.

　　This year’s Central Economic Work Conference made it clear that "we should adhere to the position that houses are used for living, not for speculation, and strengthen the expected guidance". The new regulations of the Supreme Law will affect some people who want to bypass the purchase restriction through the auction of houses, and also show that the penetration and supervision of real estate regulation will be stronger and stricter.

　　"Due to information asymmetry, ordinary buyers have limited attention to the auction house." Li Chao, deputy director of the national academy of economic strategy Urban and Real Estate Economic Research Office, believes that this regulation is a kind of self-improvement in judicial policy and an administrative regulation system, which plays a certain role in stabilizing market expectations.

　　At the institutional level, the new regulations of the Supreme Law not only clarify that the auction announcement issued by the people’s court states that the bidder must have the qualification to buy a house and its corresponding legal consequences, but also clarify that if the buyer’s fictitious qualification to buy a house causes the auction to be invalid, he shall be liable for compensation according to law.

　　The reporter noted that the new regulations of the Supreme Law also made it clear that the judicial auction of real estate could not be disposed of normally, and the people’s court would not support the request of the parties such as the application executor who did not have the qualification to purchase the house to pay off debts. However, industry insiders said that this is unfair to some application executors and is not conducive to the realization of rights and interests.

　　In addition, property buyers are very concerned about whether the auction house can vacate on time. According to the newly issued Opinions of the Supreme People’s Court on Further Perfecting the Restriction Mechanism of Execution Power and Strengthening the Supervision of Execution, if the auction property is real estate and the executor or others have no right to occupy it, the people’s court shall be responsible for vacating it according to law, and shall not specify information such as "not responsible for vacating the delivery" in the public information.

　　In fact, the purchase method should also pay attention to avoiding the "minefield". Experts believe that the auction house sometimes looks lower than the market price, but there are some risks in itself. Whether it is a "leak" or a "giant pit", you have to think twice before you act. Experts said that even if the loopholes in the purchase restriction are blocked, as buyers, they should do their homework before participating in the auction, and have a clear understanding of the ownership of the property, whether the house itself is flawed, and whether the residents can vacate on time, and then make a decision. (Reporter Li Wanxiang)