[Case Summary]This case involves a dispute over a housing sales contract. In 2017, Ms. Zhou signed a "Purchase Agreement" with Company A to purchase House No. 609, with a unit price of 14,129.07 yuan per square meter and a provisional total purchase price of 749,406 yuan. She paid a purchase discount service fee of 15,000 yuan and a down payment of 394,406 yuan, but Company A failed to build the house and sign a formal contract for many years. Ms. Zhou subsequently entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer filed a lawsuit, and the court ruled that the "Subscription Agreement" was terminated on November 11, 2024. Company A was required to refund the purchase price of 379,406 yuan within seven days, and Brokerage Company B was required to refund the service fee of 15,000 yuan. The core disputes are whether the subscription agreement should be terminated and whether the purchase price should be refunded. The applicable legal provisions are the provisions of the Civil Code regarding the impossibility of achieving the purpose of the contract and the termination of the contract.

I. Review of the case facts

After paying the down payment, the developer failed to build the house for seven years and refused to refund the money. What should I do? This is a typical risk in the purchase of commercial housing. In 2017, on May 1st, Ms. Zhou learned about the pre-sale of A Company's houses through advertisements and paid a 15,000 yuan discounted service fee to enjoy a 30,000 yuan discount through the cooperating brokerage company B. On May 30, 2017, she signed the "Purchase Discounted Service Agreement". On June 10, she signed the "Purchase Agreement" with A Company, purchasing Room No. 609 at a unit price of 14,129.07 yuan/㎡, with a provisional total price of 749,406 yuan. It was agreed that the payment would be made in installments and the house would be delivered within two years. Ms. Zhou paid a total of 394,406 yuan as agreed, but A Company failed to notify her to sign the formal contract on time, and the house had not even started construction by the time the delivery period expired. During the communication, A Company claimed that it was impossible to refund the money and suggested that Ms. Zhou either wait or change to another house. With a 40-year property right, six years having passed since the signing of the contract, and four years since the agreed delivery date, the house still remains unfinished. Ms. Zhou decided to sue to recover the purchase price. Henglu Law FirmXiong BinrongAttorney representation.

II. The focus of the case

  • Focus 1: Whether the subscription agreement should be terminated.It has been more than seven years since the formal contract was not signed, and the house has not been built yet. There is no definite date for the handover, so it's unclear whether the contract's objectives can be achieved.
  • Focus 2: Return of the purchase price and service fees.Is there any basis for Company A to refund the purchase price and for Brokerage Company B to refund the service fee?
  • Focus Three: Whether the developer's defense is valid.Company A claims that the project can be delivered and the contractual objectives can be achieved. Can it prevent the termination of the contract?

III. The professional intervention of Hengluo Law Firm

The plaintiff (Ms. Zhou) alleges that:Claiming that no formal contract has been signed for more than seven years, the house has not been built, the delivery date is uncertain, and the contractual purpose cannot be achieved. Request to rescind the purchase agreement and refund the purchase price and service fees.

The defendant (Company A)'s position:I disagree with the termination, and I believe that the project can be delivered and the contractual objectives can be achieved. Therefore, the plaintiff's claim should be dismissed. B Brokerage Company failed to appear in court to defend itself.

Hengluo Lawyer's Agency Opinion:Attorney Xiong Binrong pointed out that Ms. Zhou signed a subscription agreement with Company A more than seven years ago, but never signed a formal sales contract. The developer promised to sell the property, but the building has not been completed yet, and there is no clear deadline for its completion. The purpose of the contract has been impossible to achieve, so the subscription agreement should be terminated and the developer should refund the corresponding purchase price. Since the developer ultimately failed to sign a sales contract, B Brokerage Company should refund the service fee of 15,000 yuan. The attorney supported the request for termination and refund with evidence.

  • Provide evidence to prove the fact that no formal contract was signed for seven years and that the house has not been built yet
  • The contractual purpose cannot be achieved, so the subscription agreement should be rescinded
  • Claim that Company A should refund the purchase price and that Brokerage Company B should refund the service fee

IV. Outcome of the case

The court adopted the opinion of Hengluo Law Firm and ruled that the Subscription Agreement between Ms. Zhou and Company A was terminated on November 11, 2024, and Company A should refund Ms. Zhou the purchase price of 379,406 yuan within seven days; Brokerage Company B should refund Ms. Zhou 15,000 yuan within seven days. A seven-year house-buying dispute has finally come to an end, and Ms. Zhou has recovered all the purchase price and service fees. The court recognized the legal consequences of the unfulfillment of the contract purpose and the termination of the Subscription Agreement.

5. Hengluo Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Xiong BinrongThe lawyer (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent. Lawyer's Tip: Purchasers should carefully review the terms of the purchase contract and the developer's qualifications and credibility before signing the contract, and follow up on the construction progress in a timely manner after signing the contract; the subscription agreement is not equivalent to the formal sales contract. If the developer fails to build the house for a long time or fails to sign the formal contract, resulting in the failure of the contract purpose, the purchaser may request to rescind the contract and return the purchase price. In case of disputes, please keep evidence in time and seek the help of a professional lawyer.

VI. Common Questions and Answers about House Purchase and Sale (Subscription) Cases

  1. Q: If the developer fails to build the house within seven years after the down payment is made, can I get a refund?
    A:Yes. If the contractual purpose cannot be achieved, the subscription agreement can be rescinded and the deposit refunded. In this case, the court ordered the refund of 379,406 yuan and 15,000 yuan in service fees.
  2. Q: Are subscription agreements the same as formal contracts?
    A:It's different. The subscription agreement is a reservation, which is not the same as a formal sales contract; if the formal contract is not signed for a long time and the house has not been built, the buyer can request to rescind the contract and get a refund, which is the case in this instance.
  3. Q: Can I get a refund for the preferential service fee?
    A:Yes. Since the developer ultimately failed to sign the sales contract, the brokerage company that provided the preferential services should recover the service fees. In this case, the court ruled that the defendant should refund 15,000 yuan.
  4. Q: If the developer says they'll hand over the house as soon as it's ready, what should I do if I still want a refund?
    A:If there is no clear deadline for the handover of the house and the purpose of the contract is not achieved, the court can still rule to dissolve the contract and refund the money. In this case, A Company's defense was not supported by the court.
  5. Q: Can I still get back the money I paid for the house seven years ago?
    A:Yes. The statute of limitations can be interrupted by continuous breach of contract, and in this case, the seven-year dispute ended with a full refund.
  6. Q: How can we prevent the risk of unfinished construction when buying a house?
    A:Before signing the contract, check the developer's qualifications and the project's approval procedures, monitor the construction progress, keep payment receipts, and promptly engage a lawyer to protect your rights in case of any abnormalities.