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the buyer of a self-built house from a villager in a different group in the same village filed a lawsuit in court five years later because he could not transfer the ownership. on september 20, a reporter from red star news learned from the weiyuan county people's court in sichuan that the court recently heard this rural house sale contract dispute case and ruled that the "house sale agreement" signed by both parties was invalid, the seller returned the purchase price, and the buyer returned the house.

wang and li are villagers from different groups in the same village. in march 2019, the two parties signed a "house purchase and sale agreement", in which li sold his self-built house in the village to wang for 150,000 yuan. on the day the contract was signed, wang paid 130,000 yuan to li, and the two parties agreed that the remaining 20,000 yuan would be paid in one lump sum after the property transfer was completed. however, in april 2024, wang sued the court on the grounds that the house could not be transferred and registered, and requested that the "house purchase and sale agreement" signed by the two parties be ruled invalid.

so, is the agreement signed by both parties valid? the court held that li's house was built on a homestead collectively owned by farmers. according to relevant regulations, when the house is transferred, the homestead within the scope of the house in question will be disposed of together, that is, the right to use the homestead will also be transferred. however, according to the "land administration law of the people's republic of china" and other regulations, the right to use the homestead can only be transferred to members of the collective economic organization, and it is prohibited to transfer it to members outside the collective economic organization. in this case, wang and li are not members of the same collective economic organization. therefore, the "house purchase and sale agreement" signed by the two parties violated the mandatory provisions of laws and administrative regulations and was an invalid contract.

based on this, the 130,000 yuan that li obtained from the contract should be returned, and wang should return the house involved in the case to li. the court then made the above judgment.

the judge reminded that the ownership of homesteads belongs to rural collective economic organizations. homesteads are land that collective economic organizations grant to eligible villagers for free to ensure that everyone has a house. therefore, villagers enjoy the right to use the homesteads based on their specific identity as members of collective economic organizations. according to my country's "real estate and land integration" policy, when villagers transfer rural houses, they must also transfer the right to use the homesteads. therefore, when rural houses are bought and sold between members of different collective economic organizations, the contract signed by both parties is invalid because it violates the "land administration law of the people's republic of china" and other laws and regulations.