Supreme People's Court

Provisions on Several Issues Concerning the Qualification of Bidders in Judicial Auction of Real Estate by People's Courts

(Adopted at the 1846th Meeting of the Adjudication Committee of the Supreme People's Court on September 16, 2021, promulgated now, and shall come into effect on January 1, 2022)

In order to further regulate the judicial auction of real estate by the people's courts, protect the legitimate rights and interests of the parties, and maintain social and economic order, these provisions are formulated in accordance with the Civil Code of the People's Republic of China, the Civil Procedure Law of the People's Republic of China and other laws, in combination with judicial practice.

Article 1 Where a bidder applying to participate in the judicial auction of real estate organized by the people's court is subject to the purchase restriction policy of the place where the real estate is located, the people's court shall not permit it.

Article 2 When the people's court organizes judicial auction of real estate, the auction announcement issued shall state that the bidder must have the qualification to purchase a house and the corresponding legal consequences, etc. If the bidder applies to participate in the auction, it shall promise to have the qualification to purchase a house and voluntarily bear the legal consequences.

Article 3 After the judicial auction of real estate is concluded and before the ruling on the transaction is issued to the buyer, the people's court shall examine the supporting materials submitted by the buyer proving that he/she has the qualification to purchase a house from the time he/she applies to participate in the auction to the time the ruling on the transaction is issued; If the buyer does not meet the conditions for continuing to have the qualification to purchase a house after examination, the people's court shall not permit the buyer to request the issuance of a ruling on the auction transaction.

Article 4 If the buyer fabricates the qualification for purchasing a house to participate in the judicial auction of real estate and the auction is concluded, and the parties and interested parties claim that the auction is invalid on the grounds of violating public order and good customs, the people's court shall support it.

In accordance with the provisions of the preceding paragraph, if the buyer fabricates the qualification for purchasing a house, resulting in the invalidity of the auction, he shall bear the liability for compensation in accordance with the law.

Article 5 If the judicial auction of real estate fails or other circumstances make it impossible to dispose of it normally, the people's court shall not support the applicant for enforcement or other parties who do not have the qualification to purchase a house to request the use of the house to offset debts.

Article 6 If a bidder fabricates the qualification for purchasing a house or colludes with each other in bad faith in the judicial auction of real estate organized by the people's court, infringing upon the legitimate rights and interests of others or evading the obligation to perform the legal documents, the people's court shall impose a fine or detention depending on the circumstances; If a crime is constituted, criminal responsibility shall be investigated in accordance with the law.

Article 7 Unless otherwise provided in the preceding six articles, other matters concerning the judicial auction of real estate organized by the people's court shall be governed by the relevant provisions of the Provisions of the Supreme People's Court on Several Issues Concerning Online Judicial Auction by People's Courts, the Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Enforcement by People's Courts, and the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China.

Article 8 These Provisions shall apply mutatis mutandis to the judicial sale of real estate organized by the people's court.

Article 9 These Provisions shall come into force on January 1, 2022.

In case of any inconsistency between the judicial interpretation promulgated by the Supreme People's Court before the implementation and these Provisions, these Provisions shall prevail.