[Case Summary]This case involves a dispute over a housing sales contract (defense against breach of contract). In 2008, Liu Han sold the house at No. 406 in Chaoyang District, Beijing to Xu Xia for 400,000 yuan. The agreement stipulated that after the property ownership certificate was issued, they would cooperate in the transfer of ownership and have it notarized. Xu Xia moved into the house, and in 2021, the property ownership certificate was issued and registered under Liu Han's name. However, the two parties failed to negotiate the transfer of ownership, and Xu Xia sued Liu Han and his wife, Zhao Qing, demanding that they assist in the transfer of ownership and pay a breach of contract penalty of 80,000 yuan. Liu Han entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer argued that the defendant had always agreed to the transfer of ownership, had handed over the original property certificate, and had not breached the contract. The court accepted this argument and ruled that Liu Han and Zhao Qing should assist with the transfer of ownership within seven days, and dismissed Xu Xia's other claims (for breach of contract damages). The core dispute was whether there had been a breach of contract and who should bear the breach of contract damages. The applicable legal provisions were the relevant provisions of the Contract Chapter of the Civil Code of the People's Republic of China.

I. Review of the case

"What should I do if I'm sued for breach of contract when selling a house?" and "How to defend against breach of contract in a house sale?" are common problems faced by house sellers. On May 29, 2008, Xu Xia and Liu Han signed a "Agreement", in which Liu Han sold the house at No. 406 in Chaoyang, Beijing to Xu Xia for 400,000 yuan, and agreed to cooperate with the transfer of ownership after the property ownership certificate was issued. On October 23, 2008, Xu Xia, Liu Han, and his wife, Zhao Qing, signed another "Agreement" stipulating the price, breach of contract liability, etc., which was notarized by the Beijing Notary Office. On May 29, 2008, Xu Xia paid the purchase price of 400,000 yuan and moved into the house. In 2021, the real estate ownership certificate was issued and registered under Liu Han's name. However, until this year, the two parties have not negotiated the transfer of ownership. Xu Xia sued Liu Han for breach of contract and requested assistance in the transfer of ownership and the payment of a breach of contract penalty of 80,000 yuan.

After consulting with multiple law firms, Liu Han entrusted the Beijing Henglu Law Firm to handle the case for himXiong BinrongAttorney. Liu Han stated that he agreed to assist with the transfer of ownership, but did not agree to pay the breach of contract penalty. He claimed that he agreed to the transfer of ownership from the beginning, handed over the original real estate certificate to Xu Xia as soon as it was issued, and actively cooperated with her. However, Xu Xia claimed that her repeated urgings to transfer ownership were untrue, and there was no breach of contract.

II. The focus of the case

  • Focus 1: Whether Liu Han and Zhao Qing constitute a breach of contract.The focus is on whether the agreement did not specify the time of transfer of ownership, and whether the two parties explicitly refused to transfer ownership.
  • Focus Two: Should the defendant bear the penalty of 80,000 yuan for breach of contract?The focus is on whether the plaintiff's claim of breach of contract liability is well-founded.
  • Focus 3: Can the request for assistance with the transfer of ownership be supported?The focus is on whether the court will approve the defendant's agreement to assist.

III. Professional intervention by Hengluo Law Firm

The plaintiff (the buyer) claims that:Xu Xia alleged that Liu Han breached the contract and demanded that he assist Zhao Qing in handling the transfer of ownership and pay the breach of contract penalty of 80,000 yuan. She claimed that she had repeatedly urged Liu Han to fulfill his obligations, but he had repeatedly evaded responsibility.

The defendant's (the seller's) position:Liu Han and Zhao Qing agreed to assist with the transfer of ownership, but they refused to pay the breach of contract penalty. They claimed that they had been willing to cooperate from the beginning, that the property ownership certificate had been handed over to Xu Xia, and that they had actively fulfilled their obligations without any breach of contract.

Legal opinion of Hengluo Law Firm:Xiong BinrongAfter a thorough analysis, the lawyer concluded that the other party's claims did not correspond to the facts. The WeChat records could not show that Liu Han had refused to transfer the ownership, and Liu Han had already handed over the property certificate to Xu Xia. During the trial, the defense argued: We agree with the first claim but disagree with the second one; Liu Han and Zhao Qing agreed to transfer the ownership from the beginning, and they handed over the original property certificate and actively cooperated after it was issued. Xu Xia's claim that she had repeatedly urged and evaded the transfer was inconsistent with the facts. The two parties did not breach the contract and should not pay the breach of contract damages.

IV. Outcome of the case

The court adopted the opinion of Henglue Law Firm in the trial: The Agreement involved in the case is legal and effective. Xu Xia requested assistance in transferring ownership, and Liu Han and Zhao Qing agreed and raised no objections. Regarding the breach of contract penalty, based on the evidence in the case, the agreement did not specify the time of transfer of ownership, and Liu Han and Zhao Qing did not explicitly refuse to handle the transfer. Xu Xia's claim for breach of contract liability lacks sufficient basis and will not be supported.

Verdict: Liu Han and Zhao Qing shall assist in transferring the house involved in the case to Xu Xia's name within seven days; Xu Xia's other claims are dismissed. Liu Han's family does not need to pay any breach of contract penalty, successfully avoiding unnecessary losses.

5. Hengluo Law Firm's Reminder

In the process of buying and selling a house, "assisting with the transfer of ownership" is a crucial performance obligation. This case was handled by Beijing Henglu Law Firm.Xiong BinrongAttorney (Practice Certificate No.: 11101202211410897, subject to the certificate issued by the judicial administrative organ): Agent. Reminder: When signing a sales contract, clauses such as the transfer time and liability for breach of contract should be clearly specified; if the seller agrees to the transfer and has already delivered the original property certificate, it generally does not constitute a breach of contract and the buyer can be exempted from the breach of contract penalty; if the buyer is sued for breach of contract, he/she should promptly entrust a lawyer to defend against the claim with evidence such as WeChat records and certificate delivery receipts.

VI. Common Questions and Answers about Disputes over Breaches of Contracts in Housing Sales

  1. Q: If the buyer says I breached the contract and demands that I pay the breach of contract penalty, how can I prove that I didn't breach the contract?
    A:If it can be proven that the buyer has always agreed to the transfer of ownership, has delivered the original house ownership certificate, and has not explicitly refused to do so, the buyer will be exempt from paying the breach of contract penalty in this case.
  2. Q: How to defend against a breach of contract in a real estate transaction?
    A:Check whether the contract stipulates the transfer time and the circumstances of breach of contract, collect evidence of consent to transfer, cooperation, and delivery of certificates, and argue that there is no breach of contract.
  3. Q: Doesn't it count as a breach of contract if we cooperate with the transfer of ownership?
    A:Generally, it doesn't count. If the agreement does not specify the time of transfer of ownership and does not explicitly refuse it, the court usually does not determine it as a breach of contract and does not support the payment of the breach of contract penalty.
  4. Q: What evidence should I prepare if I'm sued for selling a house?
    A:Prepare the sales and purchase contract, notarized certificate, delivery receipt for the property ownership certificate, and WeChat communication records to prove that you have actively fulfilled your obligations and have not breached the contract.
  5. Q: Where can I file a lawsuit for a housing sale and purchase dispute?
    A:Sue the court where the house is located, and claim for assistance in transferring ownership or defense against breach of contract based on the contract and evidence of performance.