Abstract: Free circulation of property is an important principle of modern civil law whereas free transfer of sea area utilization rights is essential for sea area utilization rights transfer system construction.Despite its positive role in avoiding sea area utilization speculation and enforcing sea area utilization monitoring, the constraints on sea area utilization rights transfer by The Regulation of Sea Area Utilization Rights violate the principles of property rights integrity and transferability.As a result, The Regulation of Sea Areas Utilization Rights is not efficient in the secondary market of sea area utilization rights transfer and adversely affects secondary market functions.Therefore, the Regulation should be modified and unreasonable constraints should be canceled so that operative sea area utilization rights can be transferred freely.This is consistent with property rights theory and has much implication for promoting the optimal allocation of marine resources and increasing the utilization efficiency of marine resources.