“This house was sold by your son two years ago!” Madam Chen looked at the burly debt collector, and could not believe her ears. At first she thought she met a robber, however she kept receiving bank bills asking for repayment. It was only then Madam Chen realised the how serious the problem had became. After a harsh questioning, her younger son finally told the truth. However the matter only became worse when the Court sent them writs requesting Madam Chen’s household to immediately move out.
The deeply troubled Madam Chen’s last resort was to call a lawyer, and she came to me telling me the story of how her son secretly sold their house.
It seemed that Madam Chen’s household was relocated to the current house and they only registered their younger son’s name (Little Meng) on the household register. However Little Meng is not a spendthrift person, and spent money like water, and his debts stacked high. In order to quickly return his debts, Little Meng borrowed RMB 40,000 from a loan shark (Mr Wei). Although Little Meng returned the bank loans, but his loans from Mr Wei became a huge problem. Due to compound interest, his debts became as high as RMB 400,000. Mr Wei then gave him an idea, asking Little Meng to transfer the house under his name to Mr Wei’s brother Mr Yue, Mr Yue would then transfer the house back when the bank agreed to a mortgage.
In order to get rid off Mr Wei as soon as possible, Little Meng agreed to the idea. Little Meng then went to the notary public to do the relevant matters for transfer of ownership, the house is now under Mr Yue’s name, and the bank gave Little Wei a mortgage of RMB 400,000. But when Little Meng wanted to cll them to ask for his house back, he could not reach them anymore. It was only then Little Meng realised his nightmare had just started.
Madam Chen started sobbing here, I calmed her down a little, and started analyzing the Court’s summon, then realised the Plaintiff is now Mr Zhong instead of Mr Yue, the house had once again been transferred to someone else! And the sale of house of Mr Zhong was way too low, which raised my suspicion. Hence, from Mr Zhong ability to pay and the difference between the contractual price and the market value, I raised my evidence, additionally Mr Zhong did not look at other houses, which further indicates that the sale of house contract between Mr Zhong and Mr Yue was invalid. Mr Zhong is not an innocent third pasty, hence they have no rights to request Madam Chen’s household to move. The Court supported my case.
However to get the house back, we still need evidence to suggest that the contract between Mr Meng and Mr Yue, and the contract between Mr Yue and Me Zhong was invalid. In finding for evidence, regardless of the price of the house, or Mr Meng’s repayment record, or Mr Yue’s ability to pay all points to the fact that the contract was only in place to get the bank mortgage. According to <Contract Law>, a contract us deemed invalid if it is used to achieve an illegal purpose.
Additionally, since we won the case previously, I once again emphasized to the Court that Mr Yue and Mr Zhong was in a malicious conspiracy, therefore the sale of house contract is invalid. The Court finally found for us, Madam Chen and household could finally get their house back after numerous twists and turns.