Abstract: China’ s current right to use homestead can only be transferred among rural residents, and its transfer shows obvious identity, giving rise to a large number of extrajudicial invisible circulation, idle homestead bases and other problems. With the progress of the integration of urban and rural areas in the new era and the urgent demand of farmers for the property income of homestead, the restriction of identity becomes an obstacle to the transfer of the right to use homestead. The identity of the transfer of the right to use the homestead has a legislative basis and judicial basis, and the identity of the transfer of the right to use the homestead should be diluted. The legislation should respond to the policy of “Three-Rights Separation” of homestead and construct the public system of the right to use the homestead. We should construct and improve the paid use system and time-limited use system. Relevant laws should desalinate the identity of the right to use the homestead in circulation, which is conducive to make the homestead use right return to its essence of private right.