Huang X (A) and Huang X (B) v. the People’s Government of Shunde District, Foshan, and National Land and Civil Construction Bureau and Water Conservancy Bureau of Shunde District, Foshan (Administrative Registration)—The Bona Fide Acquisition of Mortgage Constitutes an Impediment to the Cancellation of Housing Registration
Jus in re aliena encompasses mortgage, to which the system of bona fide acquisition can also be applied. The judgment of whether housing mortgages constitutes bona fide acquisition shall be analyzed in light of the general theory of bona fide acquisition and the actual situation of the case. The core element for the determination of bona fide acquisition is bona fide acquisition of mortgage by a third party with compensation. When housing mortgages is in conformity with the elements of bona fide acquisition, such bona fide acquisition may constitute a deterrent to cancellation of housing registration. Cancellation of the housing registration will affect the validity of the mortgage registration, resulting in the inability to realize the mortgage. Therefore, in the event of obtaining the mortgage in such bona fide acquisition, it shall be adjudicated that the act of housing registration is illegal, and the validity of the housing registration shall be retained.