[Direct answer]In the Beijing area, the situation should be handled differently, with the focus on whether the purchase restrictions are policy limitations before signing the contract or policy changes after signing the contract. Article 533 of the Civil Code of the People's Republic of China stipulates the rule of change of circumstances. After the contract is concluded, if the basic conditions undergo major changes that the parties could not foresee at the time of signing the contract, and the continued performance of the contract would be obviously unfair to one party, the party affected by the adverse consequences may request to modify or terminate the contract; Article 577 stipulates the liability for breach of contract; Article 587 stipulates the penalty for the deposit. If the buyer already knew or should have known that he/she did not have the qualification to purchase the house at the time of signing the contract, it usually constitutes a breach of contract, and the buyer may bear the liability for the deposit or breach of contract; if the purchase restriction policy is introduced or adjusted after signing the contract, resulting in the contract being unable to be performed, the buyer may request to terminate the contract and require the return of the paid amount, and share the losses that have occurred according to the principle of fairness or as agreed upon. In practice, priority should be given to consultation, and if consultation fails, litigation should be evaluated.

1. Problem background and typical scenarios

The purchase eligibility is a prerequisite for second-hand housing transactions, and policy adjustments often disrupt transaction arrangements. Typical situations include: after signing the contract, the purchase eligibility policy is tightened, and the buyer no longer qualifies for purchase; the buyer's social security or personal income tax payment period is insufficient, and they cannot pass the eligibility review; changes occur in the seller's conditions, such as the seller's house being the only one in the family; the buyer and seller do not have an agreement on the consequences of policy changes; and the agent charges fees after facilitating the transaction but is unable to handle the online signing. In practice in Beijing, whether the contract can be rescinded and how the deposit and agency fees are handled often depend on the timing of the policy changes, the parties' agreements, and the degree of fault.

II. Key points of dispute

First, whether the changes in the purchase restriction policies constitute a change in circumstances or a reason not attributable to either party. Second, whether the buyer knew at the time of signing the contract that they did not have the qualifications to purchase the property. Third, the return of funds after the contract is rescinded, the handling of the deposit, and the sharing of losses. Fourth, the responsibility for and refund of the agency fee. Fifth, whether it is possible to remedy the situation by changing the subject of the contract or extending the performance period. Sixth, the relationship between the application of the breach of contract liability and the change in circumstances rules.

III. Professional analysis by Henglue Lawyers

From the experience of Henglu Law Firm in handling housing sales and purchase restrictions disputes, when encountering purchase restrictions, it is usually necessary to analyze from three aspects. First, timing judgment. If the policy changes after signing the contract, it is a major change that the parties could not foresee at the time of contract signing, and they can claim to modify or terminate the contract according to Article 533 of the Civil Code of the People's Republic of China; in this case, the termination of the contract is generally not considered a breach of contract, and the paid funds should be returned, and the losses can be shared according to the principle of fairness. Second, fault judgment. If the buyer knew or should have known that he/she did not have the qualification to purchase the house at the time of signing the contract and still signed the contract, it usually constitutes a breach of contract, and he/she shall bear the penalty for the deposit or the liability for breach of contract according to the contract; if the intermediary agency failed to fulfill its obligation of verification and notification, it may also bear corresponding responsibilities. Third, remedial path. The parties can negotiate to change the performance subject, postpone the transaction until the qualification is available, or transfer the right to a qualified close relative, but they should pay attention to the requirements of the purchase restriction policy on the authenticity and compliance of the transaction, and the arrangements to evade the purchase restrictions may be deemed invalid. In practice in Beijing, the court will also review whether the contract makes provisions for policy changes, whether the parties have fulfilled their obligation of due diligence, and whether they have notified each other in time, so as to determine the mode of termination and the sharing of responsibilities. Therefore, it is often more effective to verify the purchase qualification before the transaction and set up a policy change clause in the contract than to argue about the dispute afterwards.

IV. Practical suggestions and legal basis

Action list: First, verify the buyer's eligibility and their social insurance and personal income tax payment status before signing the contract; Second, agree on the handling method and responsibility sharing regarding changes in the purchase restriction policy in the contract; Third, notify the other party in writing and negotiate a solution promptly after the policy changes; Fourth, retain the eligibility review materials, policy documents, and communication records; Fifth, evaluate the feasibility of rescinding the contract, changing the contracting party, or deferring performance; Sixth, if intermediary fees are involved, verify whether the intermediary has fulfilled its obligations of verification and notification. For second-hand housing transactions and breach of contract disputes, refer to the relevant provisions for reference.Real estate transactions and construction projectsFor matters related to contract performance and breach of contract determination, you may refer to the following for reference.Business and contract disputes in enterprisesFor matters related to the recovery and enforcement of funds, you may refer to the following documents for reference:Creditor's rights and debts, and enforcement casesLegal basis: Articles 533, 577, and 587 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, it is essential to verify your own eligibility to purchase a house before signing the contract to avoid bearing the liability for breach of contract due to non-compliance with the eligibility requirements. Secondly, the timing of policy changes is crucial in determining liability, so it is advisable to promptly secure policy documents and communication records. Thirdly, the contract can stipulate the handling methods for policy changes to reduce disputes after the fact. Fourthly, there is a risk that arrangements to evade purchase restrictions may be deemed invalid, so it is not advisable to adopt them lightly. Fifthly, the verification and disclosure obligations of intermediary agencies also deserve attention. For transactions involving purchase restrictions and second-hand houses, you can consult a lawyer for professional advice.Property sales and construction projectsWe provide a comprehensive solution for services, and for contract disputes, we can assist you with related matters.Business and contract disputes in enterprisesFor cases involving the recovery of funds, the parties involved can cooperate with each other to resolve the issue through negotiation or legal proceedings.Creditor's rights and debts, and enforcement casesComprehensive judgment.

VI. Frequently Asked Questions

Q1: What should I do if the purchase restrictions are implemented after I sign the contract?

The timing of policy changes should be distinguished. If the purchase restriction policy is introduced or adjusted after the signing of the contract, it constitutes a major change that the parties could not foresee at the time of contract conclusion. According to Article 533 of the Civil Code of the People's Republic of China, the party adversely affected by such changes may request to modify or terminate the contract. Generally, terminating the contract is not considered a breach of contract, and the payments already made should be refunded. The losses may be shared according to the principle of fairness. If the buyer already knew at the time of signing the contract that he/she did not have the qualification to purchase the house, it usually constitutes a breach of contract and the buyer needs to bear the penalty for the deposit or the liability for breach of contract according to the agreement. It is recommended to notify the other party in time and negotiate a solution.

Q2: If the buyer is unable to transfer the ownership due to the purchase restrictions, does this constitute a breach of contract?

This needs to be judged based on the fault. If the policy changes occur after the signing of the contract and neither party is at fault, it is usually not considered a breach of contract. In this case, the contract can be terminated according to the change of circumstances and the paid amount can be refunded; if the buyer knew or should have known that he/she did not have the qualification to purchase the house at the time of signing the contract but still signed it, it may constitute a breach of contract and the buyer needs to bear the responsibility of the deposit or the breach of contract penalty; if the seller conceals important information that affects the transaction, he/she may also bear corresponding responsibilities. The court will also review the contract's provisions on policy changes, whether both parties have fulfilled their obligation of due diligence, and whether they have given timely notice, and determine the responsibility based on this.

Q3: Can the deposit be refunded?

It depends on the attribution of liability. If the contract is terminated due to changes in the purchase restriction policy and neither party is at fault, the party receiving the deposit should generally return the deposit; if the buyer breaches the contract because he/she does not have the qualification to purchase the house, the seller may not return the deposit according to the penalty for the deposit; if the seller breaches the contract, he/she should return the deposit doubled. If the parties have agreed on both the penalty for breach of contract and the deposit, one of them shall be applied generally. When handling the case, attention should be paid to keeping the policy documents, the records of qualification review, and the evidence of communication to prove the time point of the policy changes and the attribution of liability. For specific application, it is recommended to consult a lawyer.

Q4: Can the agency fee be refunded?

It depends on the performance of the intermediary services. If the intermediary has facilitated the conclusion of the contract, they can usually receive the corresponding remuneration as agreed; if the transaction cannot be completed due to changes in the purchase restriction policies or the intermediary's failure to fulfill their obligations of verification and notification, the parties may claim a refund of part or all of the fees, which should be determined based on the contractual provisions and the degree of the intermediary's fault. The parties should collect the intermediary contract, payment receipts, and communication records to prove whether the intermediary has fulfilled their obligations of verifying the purchaser's eligibility and providing policy notifications. If no agreement can be reached through negotiation, the parties may seek a refund through litigation.

Q5: Will the purchase restriction policy be relaxed?

The purchase eligibility policies will be adjusted dynamically according to market conditions and regulatory needs. For specific details, please refer to the current valid policies announced by the local competent authorities. It is not advisable to make predictions based on past experience. To reduce risks, before purchasing a property, you should verify your purchase eligibility and the requirements for social insurance and personal income tax payment periods with the competent authorities or through official channels, and stipulate the handling methods for policy changes in the contract. If your eligibility is limited after signing the contract, you should first negotiate with the other party to change the performance subject or postpone the performance. If no agreement can be reached, you can consider terminating the contract and claiming a refund of the payments already made.

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 currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, 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 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.