| Resettlement houses are built to accommodate those people whose houses are demolished by the government. With the accelerated process of urbanization in China, a lot of demolition resettlement houses are built both in urban and rural areas. Trading of this kind of houses are very common. But the current laws and policies have many restrictions on this kind of trading, leading to the judicial practice of identifing this kind of contracts invalid. Because of the distinction between real rights and claims, the change in home ownership should not affect the validity of the contract.The first chapter analyzes the legal characteristics of resettlement housing, ownership, and the main differences from the commercial residential building. The second chapter analyzes the legal nature of the resettlement houses sales contract. The third chapter analyzes the three conditions that hold back the transfer of ownership. The fourth chapter analyzes the legal consequences of the resettlement house sale contract coming into effect.The conclusion of the article discusses the positive effect of identifing the validity of this kind of contract,and proposes a few advices to improve the existing legal provisions.This article is aimed at solving practical problems,using the basic theory of civil law. To identify the validity of the sales contract of resettlement houses,is to protect the property right of the owner. Market transactions should not be interfered by local government's improper decision. Freedom of contract should not be violated by the court's improper ruling. |