In the process of buying a home, many people choose to treat their parents as co-repayers. This makes it easier to approve loans, but raises an important question: do parents have property rights as co-repayers? This issue relates to legal and contractual provisions and needs to be analysed from multiple perspectives。

Do parents have property rights as co-repayers

First, let us look at the establishment of the loan contract and the subject of repayment. In home-purchase loans, there is usually a loan contract between the lender and the borrower. The lender is the financial institution that provides the loan, while the borrower is the buyer, usually including parents and children. Under the terms of the loan contract, the fact that parents are co-repayers does not mean that they have property rights. Their role is primarily to share the burden of repayment, while the property rights are vested in the owner himself。

Secondly, we need to understand the legal provisions on the attribution of property rights. In accordance with article 12 of our Property Code, title to immovable property may be established by purchase, inheritance, gift, etc. As a result, real ownership of the home can be achieved only if the purchaser has completed the acquisition of the property, a condition that the parents, as co-repayers, do not fulfil and therefore do not own。

In practice, however, there are special circumstances, such as the existence of an express agreement in a contract for the purchase of a home that the parents act as agents for the purchaser and that the parents jointly enjoy property rights. In such cases, the parents, as co-repayers, have property rights, but this is a relatively rare and exceptional situation and does not meet the general requirements。

In addition, although parents have no property rights as co-repayers, their presence has been of great assistance in the approval of loans by buyers. Many purchasers have difficulty obtaining loans for their first purchase because of insufficient income or poor credit records. With the support of parents as co-repayers, loan institutions have made it easier for them to approve and increase the opportunities for home buyers to purchase。

In any event, parents do not have property rights as co-repayers, and their role is primarily to share the burden of repayment. Real ownership of the home can be achieved only if the buyer has completed the acquisition of the property. However, the support of parents as co-repayers in the purchase of a home loan is very important for the purchaser。