The Chinese government commercialized the housing market after the economic reform started in 1978 by Deng Xiaoping. The public houses that were constructed before that the economic reforms were categorized as "Old Public Houses" (). "Old Public Houses" were, in principle, not supposed to be privately sold, but the household could sell it after purchasing the ownership of the building (not the property), and such transactions were subject to be review by local housing authorities and the State-owned Assets Supervision and Administration Commission. However, an informal filing system and unclear policies resulted in problems of corruption and family dispute.