Key Things to Consider When Buying Your First Home
The main content of this article is derived from Never Say You Understand Buying a House. The entire content takes approximately 5–7 hours to read. By dedicating one hour each day, you can finish it in about a week—it offers practical guidance for homebuyers.
Before Buying a Home, Understand the Main Property and Land Types on the Market
Before Buying a Home, Clarify the Transaction Costs You May Need
If You Can't Repay Your Mortgage, This Might Be the Outcome
In short, prepare your finances well before purchasing a home. If you're planning a 30% down payment, try to have an extra 5% ready, as taxes and miscellaneous fees can amount to around 5%. Have a clear understanding of your payment and repayment capacity—never exceed 70% of one party's income—and avoid overestimating what you can afford. Also, don't easily trust others' bridge-loan or mortgage-refinancing schemes. Is Mortgage Refinancing Reliable?
Main Property Types on the Market and Purchasing Advice
What to Watch Out for When Buying a Villa
In the interest of efficient land use, the government strictly prohibits villa construction. Most newly built "villas" violate current regulations and often have hidden issues with water, electricity, and other utilities. It's best to avoid them. If you must buy one, opt for an older property—older villas were sometimes built under less strict rules and may be structurally better. However, aging plumbing and electrical systems, along with outdated internet infrastructure, can be problematic, so this option isn't highly recommended.
What to Watch Out for When Buying a School-District Home
"School-district housing" is largely a myth. School zones are redrawn annually by the government based on residency, so your property's eligibility for a particular school can change each year. Don't take it too seriously. A classmate of mine lives right behind a school but still isn't in its attendance zone; their child has to attend a school kilometers away.
Can You Buy a Small-Property-Certificate Home?
Theoretically, small-property-certificate homes cannot be converted into full-title properties, as doing so would undermine social fairness. Most are illegal structures: developers promise the government they'll build something specific, then change the plan to residential units after acquiring the land. Because the land use rights are improper, these aren't 70-year residential properties and are strictly speaking illegal. They may be ordered to rectify or even demolished, though enforcement is difficult.
Can You Buy Commercial-Residential Apartments? These are typical cases of unauthorized changes to land-use designation for profit.
Small-property-certificate sellers often lure buyers with promises of guaranteed rental returns and investment yields. Such practices constitute illegal fundraising and can lead to prison sentences of up to ten years. Can You Buy a Property with a Sale-Leaseback Arrangement?
Can You Buy a House Built on Rural Homestead Land?
These are theoretically illegal structures. Additionally, non-villagers are prohibited by law from buying or selling them. Contracts are generally invalid in the eyes of the law. Transferring ownership is also impossible, so it's best to stay away.
When buying a home, prefer completed units over off-plan properties. Unfinished Developments Are a Major Hassle—once you've paid,维权 (rights protection) is extremely difficult.
Research Land Use Rights and Verify the Developer's Five Licenses if possible. These determine whether you'll actually receive a property certificate.
Inspect Before You Buy. It's worth hiring a home inspector. If you're serious about a property, identify issues upfront so you can negotiate a lower price or walk away if problems are severe. (Basic Home-Buying Tips)
Documents You'll Typically Sign When Buying a Home
Once you understand the above,
Issues Regarding Property Certificates
Banks no longer hold property certificates as collateral; buyers receive them directly. Certificates are usually issued within 2–6 months after handover, most commonly around two months. Overall, as long as the property certificate states a 70-year term, there's generally no issue. Properties that fail to receive certificates are typically problematic—often due to违规开发 (unauthorized development), which prevents the government from issuing certificates. The prerequisite for obtaining a certificate is that the developer holds all five required licenses. The most critical is the State-Owned Land Use Right Certificate, which specifies exactly how the land may be used. If the land use doesn't comply, a property certificate won't be issued.
The two biggest risks of failing to get a certificate are: (1) the developer can continue using the land title as collateral for financing, since legal ownership remains with them; and (2) the property cannot be traded on the open market, meaning you won't be able to transfer ownership when selling or upgrading. If the developer goes bankrupt or faces financial trouble, the property could be sold again or seized by the court. In extreme cases, illegal structures without certificates may be demolished by authorities. These problems are more common with smaller developers, especially in smaller cities. Note that if a developer has all five licenses and the land use is compliant, obtaining a mortgage and property certificate is generally straightforward. P.S.: Never Buy a Property Without a Certificate
Property Management Issues After Moving Into a Commercial Residence
After moving in, residents should first establish a homeowners' committee at the subdistrict or neighborhood office and raise initial funds (around 100,000 RMB) for collective rights protection. This provides both legal backing and material resources for any future disputes with developers or property management companies. Many communities decline rapidly because residents remain fragmented and unable to organize effectively.
Rights Protection in Commercial Housing (successful维权 relies on solid resources and collective effort)
What You Need to Know: Communities Can Deteriorate Irreversibly. Past experience shows that if a homeowners' committee isn't formed early,维权 becomes nearly impossible later. Once established, a two-thirds majority vote can replace the property management company. Collective action is essential to ensure long-term living quality.