Can a house purchased during marriage with full funding from the parents be deemed a nominal purchase?

I. Case Summary

This case is a contractual dispute arising from nominal home purchase, with the central issue revolving around the ownership of the property in question—located at No. ***, Chaoyang District, Beijing. In August 2013, Gong, the son, and Li, the daughter-in-law, registered their marriage; the following month, the couple jointly funded the purchase of the property and registered it in Gong’s name. In 2023, Gong’s parents filed a lawsuit on the ground of “nominal home purchase,” seeking a court ruling that the property title be vested in them and that the transfer of ownership be completed. After two rounds of trial, the courts found the fact of nominal home purchase to be established and held that Gong has an obligation to cooperate in effecting the transfer.

II. Points of Contention and Legal Analysis

(1) Points of Contention

1. Whether there is an agreement to purchase a house under another person’s name : Mr. Gong’s parents contend that they informed their daughter-in-law, Ms. Li, of the home purchase at the time and reached a verbal agreement; Ms. Li, however, denies having been informed and maintains that without a written agreement, the existence of such an agreement cannot be proven.
2. Determination of the Nature of Capital Contribution : Mr. Gong’s parents claim they were forced to use another person’s name due to purchase restrictions, while his daughter-in-law contends that the purchase price was a gift;

(II) Legal Analysis

1. Constitutive Elements of Buying a House Under Another Person’s Name
   Buying a house under another person’s name requires the fulfillment of three essential elements: a written agreement, actual financial contribution, and the appearance of proprietary rights.
   Proof of Funding : Mr. Gong’s parents submitted the original purchase contract, tax and fee invoices, renovation contract, and other documents to prove that they paid the relevant funds;
   Possession and use : The house has been occupied long-term by Mr. Gong’s parents, who have also been responsible for paying the utility and heating bills as well as the property management fees;
   Policy Restrictions : Mr. Gong’s parents already own three properties, and, due to the purchase restriction policy stipulated in Document No. 8 of the Beijing Municipal Government Office [2011], these properties cannot be registered in their names, thus creating a practical incentive for borrowing someone else’s name to purchase a property.
2. Judicial Recognition of Oral Agreements
   Although no written agreement was executed, the existence of a verbal understanding may be inferred in light of the special trust among family members, the purpose of the purchase (to improve living conditions rather than as a gift), and the fact that the daughter-in-law, Li, did not raise any objection for as long as ten years.
3. Defects in the Defense Based on a Claim of Gift
   The daughter-in-law, Li, contends that the purchase price was a gift; however, she has failed to produce a written gift agreement or any notarized documentation. Moreover, Gong and Li reside in a property registered under Gong’s parents’ names, rendering the purported purchase unnecessary and inconsistent with ordinary practice.
4. Feasibility of Assisting with Transfer Registration
   Building on the existing housing purchase restriction policy outlined in Beijing Municipal Construction Commission Document No. 155 of 2024, Beijing-registered households that already own two residential properties are now permitted to purchase one additional commercial residential property—whether newly built or second-hand—outside the Fifth Ring Road.

III. Evidence Preparation and Attorney Recommendations

(1) List of Key Evidence

(II) Legal Strategy Recommendations

1. Strengthening the Presumption of Fact : In conjunction with the “high probability” standard set forth in Article 64 of the Civil Procedure Law, a preponderance of evidence may be established through a chain of evidence comprising continuous years of possession and use, closed-loop funding, and full-process participation.
2. Breaking the Limits of Formalism : Citing Article 15 of the “Guiding Opinions of the Beijing Higher People’s Court on Several Issues Concerning the Application of Law in the Adjudication of Disputes over House Sales Contracts,” it is clarified that contribution of funds does not equate to a gift; additional evidence must be provided to establish the agreement to hold the property in another’s name.
3. Risk Prevention and Control : Upon the judgment becoming final and enforceable, it is recommended to promptly initiate the real estate registration transfer procedure to avoid subsequent obstacles to enforcement.