[Direct answer]In the Beijing area, the buyer can claim for continued performance, compensation for losses, or termination of the contract according to the contract. In second-hand housing transactions, the seller has the obligation to cooperate with the buyer in completing procedures such as transfer of ownership, face-to-face signing, and provision of materials required for mortgage loans; if the seller refuses to cooperate without a valid reason, it constitutes a breach of contract. According to Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear contractual liabilities such as continued performance, remedial measures, or compensation for losses. The buyer may first urge the seller to perform within a reasonable period of time. If the seller still fails to perform after the expiration of the time limit, the buyer may request continued performance of the contract, compensation for losses caused by the breach of contract, or termination of the contract and demand the return of the paid house price and deposit, as well as the payment of breach of contract damages. If the contract stipulates a breach of contract penalty or a deposit clause, the buyer may claim according to the agreement; if the amount is excessive, the buyer may request appropriate adjustment. The buyer should promptly fix the evidence of the seller's refusal to cooperate and pay attention to the time nodes of loan approval and transfer of ownership.

I. Problem background and typical scenarios

The second-hand housing transaction involves multiple steps and a long cycle, and the seller's cooperation directly affects whether the transaction can be completed. Typical situations include: after signing the contract and paying the deposit, the house price rises, and the seller delays the process for various reasons, refuses to cooperate with the face-to-face signing, or fails to provide the materials needed for the transfer of ownership; the seller refuses to continue the transaction due to internal family disputes or the co-owners' disagreement; the seller sells the house to others, making it impossible to cooperate with the mortgage process; the seller demands a price increase and refuses to proceed with the formalities. In Beijing, where the volume of second-hand housing transactions is high, disputes caused by the seller's breach of contract are relatively common. Buyers often have already paid a large down payment and initiated loan approval. Once the transaction is blocked, they not only face the loss of funds being tied up, but also may miss the opportunity to purchase the house. Therefore, when encountering the seller's lack of cooperation, buyers should quickly determine the nature of the seller's breach of contract and choose to continue the performance or seek compensation to avoid extending the loss due to delay.

II. Key points of contention

Firstly, is it a contractual obligation for the seller to cooperate with the mortgage process, and can refusal to cooperate be considered a breach of contract? Secondly, how to choose between continuing to perform the contract and terminating it, and under what circumstances is the court more likely to support continued performance? Thirdly, can the penalty for the deposit, the breach of contract penalty, and the actual losses be used concurrently, and how should they be calculated? Fourthly, how to determine the method of notice and a reasonable time limit? Fifthly, how to allocate responsibilities when the loan application is not approved by the lending institution? Sixthly, what are the remedies available to the buyer when the house is sold to another party? These issues determine whether the buyer can achieve the purpose of purchasing the house or recover the losses.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm recommends handling the matter in three steps: identifying the breach of contract, selecting a remedy, and calculating the damages. **Step 1: Identifying the breach of contract.** Check the contractual obligations regarding title transfer, face-to-face signing, and provision of documents. Based on the record of reminders, determine whether the seller has breached the contract. If the seller has explicitly stated that they will no longer fulfill their obligations, the buyer may claim anticipatory breach of contract. **Step 2: Selecting a remedy.** If the buyer wishes to proceed with the purchase, they may request the seller to fulfill the contract, order the seller to assist with title transfer and loan procedures, and apply for property preservation to prevent the property from being disposed of elsewhere. If the property has already been resold or further performance is impossible, the buyer should terminate the contract and claim refund of the purchase price, deposit, and compensation. **Step 3: Calculating the damages.** The buyer may claim the penalty for the deposit, the contractually agreed breach of contract penalty, or compensation based on actual losses (e.g., the difference in housing prices, paid agency fees, and loan costs). Note that the breach of contract penalty and the deposit generally cannot be claimed concurrently. In practice, in a case handled by Henglue Law Firm, the buyer signed a pre-sale contract with the developer and paid the full purchase price. However, the developer delayed delivery by nearly nine months due to its own reasons. The buyer entrusted our lawyers to sue, claiming the breach of contract penalty as agreed in the supplementary agreement. The lawyers organized evidence around the contractual provisions and the application of the grace period, and the court ruled in favor of the buyer, ordering the developer to pay the full breach of contract penalty and litigation costs. This case shows that as long as the contractual obligations are clear and the evidence is sufficient, the breaching party’s claim for continued performance or compensation for breach of contract losses can usually be supported. As for the seller’s refusal to cooperate with mortgage procedures, the logic of its breach of contract is similar to the above case. The key lies in preserving evidence of its refusal to perform and timely asserting rights. This case was handled by Beijing Henglue Law Firm.Tian JiayanThe 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

Action recommendations: First, verify the clauses in the contract regarding the obligation to cooperate with the transfer of ownership and loans, and clarify the other party's breach of contract; Second, send timely written notices and keep the evidence of delivery to establish a basis for subsequent litigation; Third, if you wish to continue purchasing the property, apply for property preservation in a timely manner and demand continued performance; Fourth, if you choose to terminate the contract, claim the return of the purchase price, the deposit, and compensation for actual losses. For related services, please refer to the following link for more information:Property transactions and construction projectsAndBusiness and contract disputes in enterprisesColumn. Legal basis: Articles 577, 583, 584, 585, and 587 of the Civil Code of the People's Republic of China (effective January 1, 2021) concerning the liability for breach of contract, compensation for losses, and the provisions on deposits. The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, it is the seller's contractual obligation to cooperate with the mortgage process, and refusal to do so constitutes a breach of contract. Secondly, the conditions for continuing to perform the contract and for rescinding the claim differ, and the determination should be based on whether the house can be delivered. Thirdly, the notice of demand should be in writing and the evidence of delivery should be preserved. Fourthly, price fluctuations are an important trigger for such disputes, and it is advisable to preserve evidence and assert rights as soon as possible. For more information on protection measures for second-hand housing transactions, please contact us viaReal estate transactions and construction projectsAndBusiness and contract disputes in enterprisesFor column consultation, please contact us.Beijing Henglue Law Firm.

VI. Frequently Asked Questions

Q1: Is it a breach of contract if the seller refuses to cooperate with the mortgage process?

This constitutes a breach of contract. The seller of the second-hand house has the obligation to cooperate with the buyer in handling the mortgage loan and transfer procedures. If the seller refuses to cooperate without a legitimate reason, it is a breach of contractual obligations. The buyer may, in accordance with the contract and the law, claim for continued performance, compensation for losses, or termination of the contract, and request the return of the paid house price and deposit.

Q2: Can we ask the seller to continue selling?

This can be claimed. If the house has not been sold to another party and meets the conditions for continued performance, the buyer may request the court to order the seller to continue to perform the contract, assist in handling the transfer and mortgage procedures, and apply for property preservation at the same time. If the house has been sold to a third party and registered, it is usually no longer possible to continue to perform the contract.

Q3: Can I claim both the deposit and the breach of contract penalty together?

It is generally not advisable to repeat the same claim. Where the parties have agreed on both a breach of contract penalty and a deposit, if one party breaches the contract, the party in compliance may choose to apply either the breach of contract penalty or the deposit clause. When making the choice, the party should compare the amounts of the two with the actual losses and select the more favorable one to claim. If necessary, the party may request the court to adjust the excessive breach of contract penalty.

Q4: What should sellers do if they regret selling their house after the price has risen?

The matter will still be handled in accordance with the contract. The seller's motive for breaching the contract is the increase in housing prices, but this does not constitute a reason for exemption from liability. The buyer may choose to continue to perform the contract and apply for preservation, or to rescind the contract and claim actual losses such as the difference in housing prices, agency fees, and loan fees, and assert the liability for breach of contract or the deposit.

Q5: Whose responsibility is it if the loan application is not approved?

It is necessary to distinguish the reasons. If the approval is not passed due to the buyer's own creditworthiness, income, etc., the buyer usually bears the corresponding consequences; if the approval is blocked due to the seller's failure to cooperate in providing materials or problems with the house, it constitutes a breach of contract by the seller. It is best to stipulate in the contract the way to deal with the situation of the approval not passing.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm about specific situations.

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