Household division tradition and practice have created a steady demand for spare homestead, which is the root of the surplus homestead of Chinese peasants. "One household one homestead" rule is necessary in the constraint of limited land, but this rule is not in line with the actual situation of rural area, and household division tradition and practice make this rule hard to follow. Buyers of homestead and houses with limited property rights from the outside of the rural collective economic organizations are called "foreign villagers", which implies that their rights and obligations are absent in the collective economic organizations. In the perspective of the members of the collective economic organizations, "foreign villagers" don't participate in various daily activities and major affairs in the community of the certain villagers and fail to comply with relevant obligations, which makes them not a real member of the village and excluded from the right of getting the very same compensation as the villagers of collective economic organization in the expropriation, and buyers of homestead and houses with limited property rights agree to compensate the sellers even when they has already signed a contract if the expropriation happens.