[Direct answer]In the Beijing area, consumers who meet the requirements have priority when purchasing homes. According to Article 2 of the "Interpretation of the Supreme People's Court on the Priority Right of Compensation for Construction Project Prices" (Law Interpretation [2002] No. 16), after consumers pay all or most of the purchase price for commercial housing, the contractor's right of priority compensation for the construction project price of the commercial housing shall not be opposed to the buyer; Article 29 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Execution Objections and Review Cases by the People's Courts" (Law Interpretation [2020] No. 21) further clarifies that in the execution of monetary claims, if a buyer who meets certain conditions raises an objection to the commercial housing registered under the name of the debtor, the objection shall be supported. The general order of priority is: the rights of consumers who meet the requirements are superior to the priority right of compensation for construction project prices, and the latter is superior to mortgage rights and other creditor's rights. The action direction is for buyers to fix the evidence of having paid most of the purchase price and meeting the requirements for using the house for living purposes.

1. Problem background and typical scenarios

When a real estate project is left unfinished or the developer faces a debt crisis, it's not uncommon for buyers, contractors, and banks to "compete for compensation" over the same property. Who gets priority directly determines whether buyers can reclaim their homes and contractors can collect their project payments. Understanding the order of compensation is the first step to self-rescue in a crisis.

II. Key points of contention

First, the prerequisites for establishing the priority of consumers as home buyers. Second, the order of priority for compensation of construction project prices and mortgage rights. Third, the status of home buyers who have completed online signing and registration but not yet transferred ownership. Fourth, the procedural path for home buyers to assert their rights. Fifth, the judgment criteria in the event of conflicts of interest among multiple parties.

III. Professional analysis by Henglue Lawyers

The issue of compensation priority essentially revolves around who is the subject of legal priority protection. According to Article 2 of the "Interpretation of the Supreme People's Court on the Priority Right of Compensation for Construction Project Prices" (Law Interpretation [2002] No. 16), after consumers pay all or most of the purchase price for commercial housing, the contractor's right to priority compensation for the commercial housing cannot be invoked against the buyer. Article 29 of the "Provisions of the Supreme People's Court on Several Issues Concerning Handling of Objections and Reconsideration Cases in Enforcement Proceedings" (Law Interpretation [2020] No. 21) stipulates that in the enforcement of monetary claims, if the buyer raises objections to the commercial housing registered under the name of the debtor and meets the conditions such as having signed a valid written sales contract before the people's court seals up the property, using the purchased commercial housing for residence and having no other housing for residence under the buyer's name, and having paid more than 50% of the total contract price, the objections shall be supported. In terms of priority, the rights of qualified consumers who purchase houses are usually superior to the priority right of compensation for construction project prices, which in turn is superior to mortgages and other ordinary creditor's rights. When handling such disputes, Henglue Lawyers usually first verify whether the buyers meet the conditions such as "using the purchased property for residence, having no other housing under their name, having paid most of the purchase price, and signing the contract before the people's court seals up the property", and then determine whether they can claim priority protection. They then distinguish whether the contractor claims the priority right of compensation for construction project prices or ordinary creditor's rights. It should be noted that online signing and registration are not equivalent to transfer of ownership. Buyers who have not transferred ownership still need to meet the statutory conditions one by one to claim priority. If the case involves bankruptcy proceedings, they should also claim priority in the declaration. Fixing evidence early and asserting rights early are practical ways to increase the possibility of compensation in times of crisis.

IV. Practical suggestions and legal basis

Action List: 1. Check whether the requirements such as signing the contract before the seizure, using the property for residence, having no other housing under one's name, and having paid most of the purchase price are met; 2. Preserve the purchase contract, payment receipts, online signing documents, and proof of residence materials; 3. As a buyer, timely file an objection to enforcement or declare creditor's rights and claim priority; 4. If the contractor asserts the priority of project payment, pay attention to the scope and exercise period; 5. Monitor the progress of the project's bankruptcy or enforcement and exercise objection and voting rights in a timely manner. Main legal basis: Article 2 of the "Interpretation of the Supreme People's Court on the Priority Right of Compensation for Construction Project Prices" (Legal Interpretation [2002] No. 16); Article 29 of the "Regulations of the Supreme People's Court on Handling Cases of Objections to and Reconsiderations of Enforcement by People's Courts" (Legal Interpretation [2020] No. 21); Article 807 of the "Civil Code of the People's Republic of China" (effective from January 1, 2021); The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

There are three key points regarding compensation priority: eligible buyers have priority over the priority of project payments, and the priority of project payments takes precedence over mortgages; buyers must first meet four requirements; online signing does not equal transfer of ownership, and evidence should be secured as early as possible. For matters involving real estate and construction projects, parties can resolve disputes through legal channels.Real estate transactions and construction projectsThe service provides a comprehensive solution, which involves the integration of execution and objection handling.Creditor's rights and debts, and enforcementFor plates, those involving the validity of contracts can be referred to for reference.Business and contract disputes in enterprisesFor any inquiries regarding cross-border property purchases and financial matters, please feel free to consult us.\nFinancial capital and cross-border transactions involving foreign entities.For those interested in corporate law, please feel free to contact our team for more informationIntellectual property and corporate lawFor any questions or difficulties, please contact us via the column's contact information.Special servicesTeam.

VI. Frequently Asked Questions

Q1: If the developer owes the project payment, will my house be subject to enforcement?

If you meet the priority requirements for consumers purchasing a home, the right to priority compensation for project funds cannot be used against you; otherwise, the property may be disposed of. It is recommended that you verify the requirements and raise objections as soon as possible.

Q2: What evidence should buyers prioritize when making a claim?

It is necessary to provide the purchase contract signed before the seizure, payment receipts, online signing materials, and proof of using the property for residence and having no other housing under one's name, in order to prove that the applicant meets the conditions for priority protection.

Q3: How much does it cost to protect one's rights in such disputes?

Generally, there is no charge for raising an objection to enforcement. If a lawsuit or related litigation is initiated to challenge the enforcement, the litigation fees shall be paid according to the standards for property cases, which are related to the amount of the disputed subject matter.

Q4: How long does it take from raising an objection to getting the result?

Generally, the enforcement court reviews the execution objection within 15 days from the date of receiving the written objection; and the lawsuit initiated by the execution objection is handled in accordance with the ordinary procedure, which usually takes several months.

Q5: If the house has only been registered online but not transferred to the buyer's name, can the seller still receive priority compensation?

Online signing does not equal to transfer of ownership. Whether the buyer can take priority depends on whether they meet the statutory requirements. For buyers who have not completed the transfer of ownership, they must prove the conditions such as signing the contract before the property was sealed up, using the property for residence, and having paid most of the purchase price, etc., one by one.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.