What should I do if the house is mortgaged by the developer?

It is possible to file a lawsuit in court.

First of all, if the property owner does not provide a written entrustment or provide an explanation that the property is agreed to be used for a mortgage loan to a third party, the third party cannot apply for a mortgage loan with a real estate certificate other than his own. Therefore, the developer's use of your title deed loan is a tort, and you can file a lawsuit with the court to hold the developer liable for breach of contract, and you can also request to rescind the contract and compensate for losses.

Article 18 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Contracts for the Sale and Purchase of Commercial Housing stipulates:

If the buyer fails to obtain the certificate of ownership of the house at the expiration of the following time limits due to reasons attributable to the seller, the seller shall bear the liability for breach of contract unless otherwise agreed by the parties: the time limit for the registration of the ownership of the house as stipulated in the contract for the sale and purchase of commercial housing; The subject matter of the contract for the sale and purchase of commercial housing is a house that has not yet been built.

90 days from the date of delivery of the house; If the subject matter of the contract for the sale and purchase of commercial housing is a completed house, 90 days from the date of conclusion of the contract. If the contract does not stipulate liquidated damages or the amount of loss is difficult to determine, it may be calculated according to the total amount of the purchase price paid and with reference to the standard for financial institutions to charge interest on overdue loans stipulated by the People's Bank of China.

Litigation may be brought before the courts.

If the loan mortgage contract is signed before the commercial housing sales contract and the mortgage is registered, in addition to filing a lawsuit with the court to investigate the relevant responsibilities of the developer, the developer can also be required to pay liquidated damages for failing to file on time.

If you want to avoid this risk in the process of buying a house, you can go to the housing management department for inquiry, because the construction in progress needs to be mortgaged and you need to register with the housing management department. At the same time, if you buy a mortgaged house under construction, you should pay attention to the supervision of funds.

Legal analysis: 1. The developer will gradually repay the mortgage house and sell it gradually. Repay the loan first, then sell, and ensure that the commercial housing sold is in a state of released mortgage.

2. On the premise of fulfilling the notice, after signing the real estate sales contract, the mortgagor shall raise funds by itself and return the corresponding amount of the house sold in advance at one time. The housing management department shall handle the mortgage registration and cancellation of the mortgage, and then handle the registration and filing of the sales contract.

3. After the buyer and the developer sign the contract, the buyer, the developer and the payment for the goods are agreed upon. The buyer deposits the purchase price into a designated bank account for the purpose of repaying the loan due to the bank by the real estate developer.

4. After purchasing the house, the buyer has applied for a mortgage loan for part of the purchase price, and before the loan is repaid. The buyer then transfers the property again. After the original buyer and the secondary buyer sign the contract, they then jointly apply to the bank for the remortgage procedures.

Legal basis: Article 394 of the Civil Code of the People's Republic of China Where the debtor or a third party does not transfer possession of the property and mortgages the property to the creditor in order to guarantee the performance of the debt, the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties, and the creditor has the right to be repaid in priority for the property.

The debtor or third party provided for in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property provided for by the guarantee is the mortgaged property.

If the house is mortgaged by the developer, you can ask to move out and at the same time ask the developer to compensate for the loss. If the developer conceals that the house has been mortgaged, the buyer may request to terminate the house sale contract, and the developer shall return the purchase price and interest paid and bear the liability for compensation not exceeding one time of the purchase price paid.

Article 148 of the Civil Code of the People's Republic of China.

Where one party uses fraudulent means to cause the other party to carry out a civil juristic act contrary to its true intentions, the defrauded party has the right to request the people's court or arbitration institution to revoke it.

Article 577 of the Civil Code of the People's Republic of China.

If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear the liability for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

If it is verified that the developer has gone through the mortgage registration procedures for the house purchased by the buyer, and the mortgage is before the buyer signs the purchase contract with the developer, according to the law, the developer can only transfer the house as collateral to the buyer with the written consent of the mortgagee, i.e. the lending bank, otherwise, the transfer will be invalid. In this case, the commercial housing sales contract signed between the buyer and the developer is invalid, and the buyer has the right to request the developer to return the purchase price paid and compensate for the interest and other losses suffered thereby.

Legal basis. Article 148 of the Civil Code of the People's Republic of China [Validity of Civil Juristic Acts Carried Out by Fraudulent Means] Where one party uses fraudulent means to cause the other party to carry out a civil juristic act contrary to its true intentions, the defrauded party has the right to request that the people's court or arbitration institution revoke it.

Article 577 of the Civil Code of the People's Republic of China [Liability for breach of contract] Where one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

Article 8 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Contracts for the Sale and Purchase of Commodity Housing Article 8 In any of the following circumstances, the purpose of the contract for the sale and purchase of commercial housing cannot be realized, the buyer who is unable to obtain the house may request to rescind the contract, return the purchase price and interest paid, and compensate for losses, and may request the seller to bear the liability for compensation not exceeding one time of the purchase price paid: (1) After the conclusion of the contract for the sale and purchase of commercial housing, the seller mortgages the house to a third party without informing the buyer; (2) After the conclusion of the contract for the sale and purchase of the commercial house, the seller sells the house to a third party.