[Direct answer]In the Beijing area, when the contract is terminated, the loan should generally be terminated as well, and the remaining loan should be repaid by the developer. Mortgage purchases involve a commercial housing sales contract (or a pre-sale contract) and a loan contract and a mortgage contract, which are interrelated: the buyer obtaining a loan is a prerequisite for purchasing the house, and the bank usually pays the loan directly to the developer. When the purchase contract is terminated due to the developer's fundamental breach of contract or other reasons, if the buyer is still required to continue repaying the loan, it will result in an unfair outcome of "losing both the house and the money while still having to repay the loan". Therefore, the relevant judicial interpretations specify that after the purchase contract is terminated, the buyer may request to terminate the loan contract, and the seller shall return the received purchase loan and the purchase price to the bank and the buyer respectively. That is to say, the remaining loan principal and interest should in principle be repaid by the developer to the bank, and the buyer may request the return of the repaid loan principal and interest. The specific handling needs to be determined based on the contract provisions, whether the mortgage registration has been completed, and the bank's opinion, among other factors.

I. Problem Background and Typical Scenarios

When a real estate project is left unfinished, delivery is delayed, or the project is suspended and leads to a request for a refund, the most concerned issue for buyers is "what to do with the loan". A typical scenario is: the buyer sues to terminate the purchase contract and wins the case, but the bank still collects the loan from them, and the buyer worries that they will not get the house and still have to continue repaying the loan. The disputes focus on whether the purchase contract and the loan contract can be terminated together, and who will bear the remaining loan.

II. Key points of contention

First, the relationship and order of rescission between the two contracts; second, the subject of repayment for the remaining principal and interest of the loan; third, the return of the principal and interest of the loan already repaid and the house payment already made; fourth, the handling of the mortgage registration; fifth, the balance of interests between the bank and the developer. In practice, the path of simultaneous rescission and return is the core issue.

III. Professional analysis by Henglue Law Firm

First, the interrelatedness of contracts. The purchase contract for commercial housing, the loan contract, and the mortgage contract form a transaction chain: the buyer borrows money to pay for the house, the bank disburses the loan directly to the developer, and the house serves as collateral. The purchase contract is the foundation. Once it is terminated, the purpose of the transaction is thwarted, and the loan and mortgage contracts should generally be terminated as well. Second, simultaneous termination and restitution. Relevant judicial interpretations establish the rule that if the purchase contract is terminated due to the developer's fault, the buyer may request the termination of the loan contract, and the seller shall return the principal and interest of the purchase loan received to the bank and the principal and interest of the purchase price to the buyer; the principal and interest of the loan already repaid by the buyer may be claimed back. Third, practical handling approach. A common practice is to first terminate the purchase contract on the grounds of the developer's fundamental breach of contract (such as long-term delay in delivery, project suspension leading to the failure of the contractual purpose), then simultaneously claim the termination of the loan contract and request the developer to repay the remaining loan to the bank, return the paid purchase price and the principal and interest of the loan to the buyer, and compensate for corresponding losses. Fourth, handling of mortgages and enforcement. Where a mortgage registration has been completed, the mortgage should be cancelled after termination to avoid leaving the relationship between the house and the loan in limbo; the bank, as the mortgagee, should also have its legitimate rights and interests protected during the process. Fifth, evidence and risks. The buyer should preserve the contract, payment receipts, loan disbursement and repayment records, and evidence of the developer's breach of contract. If the developer defends with arguments such as "partial performance" or "continuable performance", these defenses are often difficult to succeed. In a commercial housing pre-sale contract dispute handled by Henglue Law Firm, the court adopted the firm's legal opinion, determining that the developer's late delivery constituted a breach of contract and ordering it to pay the breach of contract penalty for late delivery. This case reminds buyers to pay attention to the contractual provisions on delivery time and breach of contract liability and to assert their rights in a timely manner. The case was handled by Beijing Henglue Law Firm.Tian Jia YanThe attorney (practice certificate number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The first step is to verify the relevant clauses of the purchase and loan contracts to confirm whether the developer has committed a fundamental breach of contract. The second step is to request the rescission of the purchase and loan contracts when suing. The third step is to claim that the developer repay the remaining loan to the bank and return the paid purchase price and the principal and interest already paid to the purchaser. The fourth step is to handle the mortgage cancellation and credit repair simultaneously. The main legal basis: Article 20 and Article 21 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commodity Housing Sales Contracts; Articles 563 and 566 of the Civil Code of the People's Republic of China. The specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

After the contract termination, there are three key points regarding the loan: the purchase contract is terminated, and the loan contract is usually terminated simultaneously; the remaining loan shall be repaid by the developer, and the principal and interest already paid can be reclaimed; do not continue to bear the debt after losing the house, and the evidence and claims should be asserted together. For disputes involving the sale of commercial housing and contract termination, you can seek legal help through the following channels:Real estate transactions and construction projectsThe service provides a comprehensive solution, which includes the possibility of combining contract termination and breach of contract compensationBusiness and contract disputes in enterprisesFor reference, please refer to the section on funds recovery and enforcementCreditor's rights and debts, and enforcementFor columns related to finance and cross-border disputes, you can seek advice from us\nFinancial capital and cross-border transactions involving foreign entities.Team.

VI. Frequently Asked Questions

Q1: Since the purchase contract has been terminated, do I still need to continue paying the mortgage?

In principle, the buyer does not need to continue to bear the responsibility. If the purchase contract is terminated due to the developer's fundamental breach of contract, the buyer may request to terminate the loan contract at the same time, and the developer shall repay the remaining principal and interest of the loan to the bank; the repaid principal and interest of the loan may be claimed back. It is recommended to raise the request for terminating the loan contract and claiming back the repaid principal and interest in the litigation to avoid being pursued for repayment by the bank after the purchase contract is terminated alone.

Q2: Who will repay the remaining loan?

This is usually borne by the developer. According to the relevant judicial interpretations, after the purchase contract is rescinded, the seller shall return the principal and interest of the purchase loan received to the bank; that is, the remaining principal and interest of the loan shall be repaid by the developer. If the purchaser has actually repaid part of the principal and interest, he may claim a refund from the developer and claim compensation for the corresponding loss of funds occupied.

Q3: Can I get back the principal and interest of the loan that I have already repaid?

You can claim a refund. After the contract is terminated, the purchase price paid by the buyer and the principal and interest of the loan repaid will lose their contractual basis. You can request the developer to refund and claim damages for the loss of funds. The specific amount shall be based on the payment and repayment receipts. It is recommended to organize complete transaction records and bills as the basis for the claim.

Q4: What should I do if the bank refuses to terminate the loan contract?

It can be claimed in accordance with the judicial interpretation and the contract agreement. If the termination of the purchase contract is caused by the developer, the buyer has the right to request the termination of the loan contract; if the bank does not agree, it can be resolved through litigation, and the court will order the developer to repay the remaining loan to the bank. In practice, the mortgage should be cancelled at the same time to avoid the long-term uncertainty of the relationship between the house and the loan, which may affect the credit record and the purchase of another house.

Q5: If the real estate project is left unfinished, how should I initiate the termination of the contract?

First, secure evidence of the developer's fundamental breaches of contract, such as delayed delivery and project suspension. Claim to terminate the purchase contract on the grounds that the contractual purpose cannot be achieved, and simultaneously request the termination of the loan contract. At the same time, apply for property preservation to prevent the developer from transferring assets. It is recommended to engage a professional lawyer as soon as possible to formulate a litigation plan, unify the claims for termination, return, and compensation, and maximize the protection of rights and interests.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 a dispute arises, please consult a practicing lawyer in time.