[Direct answer]It is possible to legally issue a notice of default and file a lawsuit. If the other party fails to fulfill its obligations after signing the acquisition and compensation agreement, the plaintiff may file an administrative lawsuit in accordance with Article 12 of the "Administrative Litigation Law of the People's Republic of China" (amended in 2017) to resolve disputes over the administrative agreement, requesting the court to order the other party to continue to fulfill its payment obligations and compensate for losses. If the compensation decision has been made but not implemented, the plaintiff may apply for administrative reconsideration or file an administrative lawsuit. According to the "Regulations on the Acquisition and Compensation of Houses on State-Owned Land" (promulgated and implemented in 2011), the acquisition and compensation should be carried out in the order of compensation first and then relocation. The failure to pay the compensation on time may constitute an illegal act in itself. When issuing a notice of default and filing a lawsuit, the plaintiff should claim interest or actual losses during the delay in payment, and keep the agreement, the delivery certificate, and the records of collection of payment.
1. Problem background and typical scenarios
The house has been handed over and the agreement has been signed, but the compensation money has not been deposited into the account yet. Some cases have been delayed for months, and others have been repeatedly putting it off with the excuse of "funding shortage". Related searches include "What should I do if the demolition compensation money hasn't been deposited into my account?", "Can I sue if the compensation agreement is not fulfilled?", and "Can I claim interest if the compensation money is in arrears?"
II. Key points of contention
First, the nature of the compensation agreement and remedies for breach of contract; Second, the implementation of the principle of compensation first and then relocation; Third, the choice of urging, reconsideration and litigation; Fourth, whether interest and losses can be claimed.
III. Professional analysis by Henglue Lawyers
The first layer concerns the nature of the agreement and remedies. The expropriation compensation agreement is an administrative agreement. If one party fails to fulfill its obligations, the other party may initiate administrative litigation to demand continued performance, remedial measures, or compensation. This differs from the litigation path for ordinary civil contract disputes, with differences in case causes and evidence presentation. The second layer focuses on "compensation first, relocation later". The law explicitly stipulates that expropriation should proceed in the order of compensation first and relocation later. Where compensation funds have not been paid but relocation is demanded, or where relocation has occurred before compensation is paid, the party may claim that the other party is in violation of the law and demand performance, and if necessary, apply for the suspension of relevant actions. The third layer addresses path selection. For those who have signed an agreement, they may sue to enforce the agreement and claim damages for delay. For those who have not signed an agreement and only received a compensation decision, they may apply for administrative reconsideration or initiate litigation, and in the litigation, claim reasonable compensation and damages for delay. For cases of administrative omissions (such as long-term lack of response after application), they may also sue to enforce statutory duties. The fourth layer focuses on evidence and damages. Evidence such as the compensation agreement, proof of house delivery or vacating, payment records, reminder letters, and communication records should be submitted to prove the fulfillment of obligations and the fact of delay. Interest on delay or losses from fund occupation may be claimed based on the loan interest rate during the same period or actual losses, and the court will determine the amount based on the evidence. Henglu Law Firm reminds that the key to cases of delayed compensation payments is to fix the three issues of "how much should be paid, when should it be paid, and whether reminders have been issued" with evidence. This case is provided by Beijing Henglu Law Firm.Zhi Chao LiThe attorney (practice certificate number: 11101202311629788, subject to the certificate issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action list: First, send a written notice of demand and retain the delivery certificate; Second, organize the compensation agreement and the evidence of house delivery and vacating; Third, initiate administrative litigation against the agreement to enforce its performance and claim for damages; Fourth, do not miss the deadlines for reconsideration and litigation. Legal basis: Article 12 and Article 46 of the Administrative Litigation Law of the People's Republic of China (amended in 2017); Article 20 of the Administrative Review Law of the People's Republic of China (amended in 2023 and implemented on January 1, 2024); Article 27 of the Regulations on the Acquisition and Compensation of Houses on State-Owned Land (promulgated and implemented in 2011); Article 48 of the Land Management Law of the People's Republic of China (amended in 2019 and implemented on January 1, 2020). For matters related to land expropriation and demolition and administrative litigation, you can consult throughLand expropriation and demolition, and administrative litigationFor team-based operations involving the execution of payments, the two methods can be combined togetherCreditor's rights and debts, and enforcement casesService processing.
5. Henglu Law Firm's Reminder
Three key points regarding compensation arrears: If the agreement is not fulfilled, you can file an administrative lawsuit to demand its continued implementation; the statutory principle requires compensation before relocation; if relocation is delayed after the move, you can claim it as illegal; you should claim interest and damages, and keep the proof of the reminder. For protection of rights in demolition-related disputes, you can seek legal assistance through relevant channels.Land expropriation and demolition, and administrative litigationFor team-related matters or matters involving fund disbursement, please feel free to consult usCreditor's rights and debts, and enforcement casesFor matters involving the rights and interests of enterprises, you can refer to the following for reference.Business and contract disputes in enterprisesColumn.
VI. Frequently Asked Questions
Q1: Can I sue if the compensation agreement is not fulfilled?
Yes. The compensation agreement for expropriation is an administrative agreement. If one party fails to perform it, they can file an administrative lawsuit to require the other party to continue to perform it, take remedial measures, or compensate for the losses, rather than dealing with it as an ordinary civil contract dispute.
Q2: Is it legal to first hand over the house and then not pay the money?
It's illegal. According to the law, the government should compensate the residents before relocating them. If the compensation hasn't been paid but the government still requires them to move, or if they have already moved but not been compensated, it may constitute a violation of the law. The residents can demand the government to fulfill its obligations and hold the responsible parties accountable.
Q3: Can I demand interest on the overdue compensation payment?
This can be claimed. The interest or loss of funds during the delay in payment can be claimed referring to the loan interest rate during the same period or the actual loss; it is necessary to provide the payment time agreed in the agreement, the evidence of reminder, and the situation of the funds arriving as the basis for calculation.
Q4: Should I request a review or file a lawsuit directly?
For disputes over the performance of agreements, administrative litigation is usually initiated directly. If the party is dissatisfied with the compensation decision or the expropriation decision, they may first request a reconsideration or directly file a lawsuit, each of which has a time limit. The specific choice should be based on the evidence and claims to avoid missing the six-month litigation deadline.
Q5: Is it useful to issue a reminder?
It's useful. A written reminder can establish the fact that the other party is delaying performance, provide a basis for claiming interest and damages in litigation, and may also prompt them to make voluntary payments. The reminder should be delivered in a way that leaves a record and the proof of delivery should be kept.
The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law 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 relevant evidence materials, so as to avoid missing the statutory time limit. →Land expropriation and demolition legal services·Beijing Henglu 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 you encounter disputes, please consult a practicing lawyer in time.