[Case Summary]This case involves an administrative review of the illegal investigation and punishment of the sale of commercial housing. In 2020, Liu Shufen purchased a shop in A Wanjing City. The developer advertised "rental returns to offset the down payment", but the "Shop Management Entrusted Contract" signed with the affiliated company F Company stipulated that the three-year rental income of 183,861 yuan would be used to offset the down payment. However, the total price of the shop in the registered contract was not reflected, and the rental income was not actually offset. Moreover, the sale of the unfinished shop with a promise of rental after completion violated the "Regulations on the Sale of Commercial Housing". Liu Shufen's appeal to the A City Housing and Urban-Rural Development Bureau was rejected, and she also lost the civil lawsuit. Therefore, she entrusted Beijing Henglu Law Firm to handle the case for her.Yu DayiThe lawyer conducted a review of the case. The core disputes are whether the Housing and Urban Construction Bureau neglected to perform its duties and whether the developer engaged in disguised after-sales leasing. The lawyer urged the Housing and Urban Construction Bureau to file a case on July 31, 2025, and revoke the original "Explanation" on October 13. The review confirmed that the administrative omission was illegal.

I. Review of the Case Facts

After purchasing a commercial property, the developer promised "rent-back to offset the down payment" but failed to deliver on this commitment. What should buyers do in such cases? Buyers often search for terms like "Is it illegal to offer post-sale leaseback?" "How to file a complaint against developers' false advertising?" "Can I appeal if the Housing and Urban-Rural Development Bureau fails to investigate?" and "Beijing Hengluo Administrative Lawyers". In November 2020, Shuguang Company advertised that "owners of City Central One can purchase commercial properties with rent-back to offset the down payment". Liu Shufen was tempted to buy one. In 2021, she signed a contract with a total price of 1,178,076 yuan and simultaneously signed a "Commercial Property Management Entrusted Contract" with Company F, agreeing to use the first three years' rent of 183,861 yuan to offset the down payment. However, the filing form listed a total price of 1,178,076 yuan, which contradicted the rent-back agreement. The rent-back was never implemented, and selling commercial properties before completion and offering leaseback afterward violates regulations. On May 19, 2025, Liu Shufen filed a complaint with the Housing and Urban-Rural Development Bureau, but her complaint was simply dismissed. She also lost the civil lawsuit, so she subsequently entrusted Beijing Hengluo Law Firm to handle the case.Yu DayiA lawyer.

II. The focus of the case

  • Focus 1: Whether the developer constitutes disguised after-sales rental services.Is it a violation of Article 11 of the "Measures for the Administration of the Sale of Commercial Housing" for unfinished commercial housing to promise to return the rent to offset the down payment through a related company?
  • Focus II: Whether the Housing and Urban-Rural Development Bureau has fulfilled its duty of investigation and punishment in accordance with the law.Just asking the developer whether there is a violation of the law and not verifying the relationship between the parties and the authenticity of the advertisement—does this constitute a failure to act?
  • Focus 3: Does a civil litigation defeat prevent administrative relief?Civil identification does not affect the administrative authorities' performance of their investigation duties in accordance with the law.

III. The professional intervention of Hengluo Law Firm

The applicant (the buyer) claimed that:Liu Shufen requested that the Housing and Urban-Rural Development Bureau revoke its "Explanation" and order it to investigate and punish the developers for selling unfinished commercial housing under the guise of after-sales leasing and making false claims in accordance with the law.

The position of the respondent (the Housing and Urban-Rural Development Bureau):The Housing and Urban-Rural Development Bureau stated that Shuguang Company had no affiliation with Company F, and the sales contract did not include any after-sales leasing provisions. It concluded that there was no violation of the law and dismissed the case.

Legal opinion of Hengluo Law Firm:Yu DawaiThe lawyer, based on the core of the reconsideration, formulates the idea of "fixed evidence chain + directly pointing out the administrative omission": According to the "Measures for the Management of Commercial Housing Sales", the Housing and Urban-Rural Development Bureau has the statutory duty to investigate and deal with disguised after-sales leasing and price fraud; the lawyer points out that the Housing and Urban-Rural Development Bureau only questioned the management personnel and then made a conclusion, without verifying the enterprise's related relationships or investigating the authenticity of the advertisement, which constitutes a failure to perform its duties according to law and is obviously improper. The lawyer sorts out the sales contracts, entrustment contracts, transfer records, filing forms, screenshots from Tianyancha, and civil judgments, and extracts the collusion between Company F and Company Shuguang in sales and operations, as well as the contradiction between "rent offsetting the down payment" and the filing, to corroborate the false advertising. By leveraging the reconsideration process, the lawyer prompts the Housing and Urban-Rural Development Bureau to file a case against Company Shuguang on July 31, 2025, and voluntarily revoke the original "Explanation" on October 13.

IV. Outcome of the case

Attorney Yu Dawai represented the client in lodging an administrative reconsideration request with the municipal government, seeking to revoke the Housing and Urban-Rural Development Bureau's "Explanation" and order an investigation into the matter. During the reconsideration process, the Housing and Urban-Rural Development Bureau independently initiated an investigation into Shuguang Company on July 31, 2025, and voluntarily revoked the previously issued "Explanation" on October 13. The administrative omission was rectified, and Liu Shufen's three-year fight for justice reached a critical turning point, opening the door for subsequent civil or administrative claims.

5. Hengluo Law Firm's Advice

The "after-sales leasing" model poses hidden compliance risks. This case was handled by Beijing Henglu Law Firm.Yu DayiThe lawyer (practice license number: 11101201010292290, subject to the document issued by the judicial administrative organ) acts as an agent. Lawyer's advice: When purchasing a shop, it is necessary to verify the pre-sale license and the completion status. Requirements such as "rental rebate to offset the down payment" should be included in the contract and keep the promotional materials. If the administrative organ fails to investigate and deal with the case, you can file an administrative reconsideration to force them to fulfill their duties.

VI. Common Problems in the Illegal Sale of Commercial Housing - FAQ

  1. Q: Is it illegal to offer after-sales rental services?
    A:Violation of regulations. According to Article 11 of the "Measures for the Administration of the Sale of Commercial Housing", developers are not allowed to sell uncompleted commercial housing by means of after-sale leasing or disguised after-sale leasing.
  2. Q: What should I do if the rental rebate to offset the down payment hasn't been fulfilled?
    A:You can first file a complaint with the housing and construction department for investigation and punishment, and keep the evidence of the advertisement and the contract. If the civil claim is blocked, you can request a reconsideration to urge the administrative organ to perform its duties.
  3. Q: Can I request a reconsideration if the Housing and Urban-Rural Development Bureau doesn't investigate and deal with the case?
    A:Yes. If an administrative organ fails to perform its statutory duties of investigation and punishment, the party concerned may request a reconsideration to compel it to perform its duties and confirm that its failure to act is illegal.
  4. Q: Can a store be sold before it's completed?
    A:The current sale must meet certain conditions; for pre-sale, it is necessary to obtain pre-sale approval. Selling units that have not completed construction and then offering to rent out the units are particularly likely to be deemed illegal.
  5. Q: What does it mean if the filing price and the leaseback price are inconsistent?
    A:This often indicates that the leaseback commitment has not been truly included in the transaction, that there is false advertising, or that there is a disguised price reduction, which is an important clue for protecting one's rights.