On 31 march, the city officially launched the housing stock transaction “Transferred'model. Residents don't have to settle their previous payments when they sell their houses in kyotoLoansDirect registration of transfer of ownership of the dwelling may be carried out without the original mortgage being released. The buyer and seller can also “take over” loans in different banks. There will be no need to look for funds to “cross the bridge” in the future, and the transaction process will be simplified and cost reduced。
It'll take four conditions
BeijingThe bank's superintendence, the central bank's department of operations, the municipal planning and natural resources commission and the municipal housing and urban construction commission jointly issued a circular on 31 march on the promotion of work related to “hand-in-hand” housing transactions. It provides that, as from that date, individuals in the city shall beSecond-hand room tradingThe seller and buyer may voluntarily choose to use the “hand over” service and, with the consent of the original loan bank, may register the transfer and mortgage without having to settle the previous loan. The new loan bank will pay the funds directly to the seller and the original loan bank。
Households applying for second-hand “passage” services for second-hand housing transactions need to meet four conditions at the same time: firstly, the business of personal second-hand houses in the municipality; secondly, the buyer must have paid in full or the individual homeowner's loan; thirdly, the seller's outstanding loan must have been a commercial loan or a combination of the loan portion of the provident fund has been repaid; and fourthly, the traded house has only one valid mortgage in a commercial bank within the jurisdiction。
Funds disbursed directly by the new loan bank
In terms of processing procedures, beijing, unlike other municipalities that have adopted notarized mortgages and set up specially low-interest “bridge credit” institutions, has been innovative in adopting a model whereby new lending banks pay funds directly to sellers and former lending banks。
“custodial transfer” requires, firstly, that the buyer and seller enter into an offer to buy or sell the house themselves or under the intermediary's interlocutory services, enter into a contract for the transfer of the house, and agree to “custom transfer”; then, that the buyer and seller must sign the house on the beijing stock exchange service platform; third, that the bank must apply for “custom transfer”; fourth, that the seller and the parties concerned should register the “custom transfer” at the real property registration centre; and, lastly, that the buyer's mortgage be issued to settle the seller's original loan and the seller's actual payment, respectively。
Buyer and seller loans can be made in different banks
According to the notice, an application for “coupling” may be made for the loan of the seller and buyer, either from the same bank or from different banks, or the buyer may use the “couping” business when buying the house for the full amount。
If the sum of the buyer's down payment and loan amount is not sufficient to settle the seller's loan, the seller is required to make up the difference with the loan bank. The down payment will be entered into the supervisory account and, upon confirmation of the completion of the “hand-over”, the bank will transfer the down payment and the loan to the buyer's loan bank account, release the mortgage on the original seller's loan and transfer the remaining funds to the seller's own collection account. If the buyer buys the house in full, the seller's loan bank will settle the loan with the purchase price, release the mortgage and transfer the remaining funds to the seller's own collection account。
The four sectors require real estate intermediaries, when providing brokering services, to voluntarily introduce “pass-through” trading models to buyers and sellers, and not to impose increased transaction costs such as “bridge loans”。
