Informal property housing comes into being during rapid urbanization，mainly driven by rural collectives to pursue higher land profit.The key to handle informal property housing is to allow rural collectives and farmers to take part in the process of urbanization.Based on regulations of land use control，reservation land should be set aside from collective lands for an individual collective.Rural collective has a whole ownership on reservation land.Informal property houses build on reservation land are legitimate and belong to rural collective.Informal property houses build on non-reservation land should be legalized to commercial houses by paying full price.However，Informal property houses build on basic farmland should be pull down to recovery farmland.