[Direct answer]In the Beijing area, it is necessary to distinguish the reasons for the seizure from the stages of asserting rights. If the house was seized before the signing of the contract, and the seller concealed the fact, resulting in the inability to transfer ownership, the buyer may, in accordance with the Civil Code of the People's Republic of China (effective from January 1, 2021), claim to rescind the contract, return the paid price and compensate for losses, and may also hold the seller liable for breach of contract. If the house was seized after the signing of the contract, and the seizure was caused by the seller's debts, the buyer can usually rescind the contract and claim compensation. If eligible, the buyer can also file an execution objection or a lawsuit against the execution objection of a third party in accordance with the law. The key for the buyer is to prove that he/she is a party that performs the contract in accordance with the agreement, has paid the price and actually occupied the house, and the failure to transfer ownership is not due to his/her own reasons. If the transaction fails due to the buyer's own reasons, he/she shall bear the corresponding liability for breach of contract. The specific judgment shall be based on the seizure time point, the performance of the contract, and the current effective laws and regulations and judicial judgments.
1. Problem background and typical scenarios
In second-hand housing transactions, situations where the house is sealed up by the judicial authority and cannot be transferred occur frequently. Typical scenarios include: the seller conceals the fact that the house has been sealed up before signing the contract; the seller's debt is sealed up by the creditor after signing the contract; the buyer has paid most of the house price but cannot complete the transfer; the loan approval is passed, but the transaction cannot be completed due to the seizure; the seller is executed in another case, resulting in the house being auctioned. In the above situations, whether the buyer can get back the money and avoid the execution depends on the timing of the seizure and the buyer's own performance of the contract. For related real estate disputes, please refer to the following for more information:Real estate transactions and construction projects.
II. Key points of contention
First, did the seizure occur before or after the signing of the contract? Second, the seller's responsibility for concealing the seizure and the buyer's right to rescind the contract. Third, whether the buyer can avoid the forced execution of the house. Fourth, the return of the paid price and compensation for losses. Fifth, the handling of the buyer's own breach of contract. Sixth, the application of the execution objection and the lawsuit of the execution objection by outsiders. Seventh, the responsibility of the intermediary agency. The above issues determine the buyer's remedial path and outcome. For issues involving execution and property, please refer to the relevant provisions.Creditor's rights and debts, and enforcement.
III. Professional analysis by Henglue Law Firm
Henglue Lawyers' experience in cross-case involving real estate and enforcement is: after the house is sealed up, it is necessary to fix the evidence and choose the correct path as soon as possible. Firstly, it is necessary to identify the time point of the seizure. If the seller conceals that the house has been sealed up before the signing of the contract, the buyer can usually claim to rescind the contract and seek compensation; if the house is sealed up after the signing of the contract, it is necessary to determine whether the enforcement can be excluded. Secondly, evaluate the conditions for raising objections. If the buyer has signed a legal and effective sales contract before the seizure, paid all or most of the purchase price, actually occupied the house, and failed to handle the transfer of ownership for reasons beyond their control, they can raise an objection to enforcement or file a lawsuit against the third party to request the exclusion of enforcement. Thirdly, claim breach of contract liability. Whether the enforcement is successfully excluded or not, the buyer can claim the return of the purchase price, the breach of contract penalty, and compensation for losses from the seller, and require the intermediary to disclose relevant information truthfully. Finally, pay attention to timeliness. There are statutory time limits for raising objections to enforcement and filing lawsuits against the third party. It is necessary to take action as soon as possible after the seizure to avoid it being difficult to recover the house after it has been disposed of. Henglue Lawyers usually first sort out the timeline of contract signing, payment, and occupation to determine the order of events before and after the seizure, and then decide whether to claim the exclusion of enforcement or rescind the claim. For cases involving real estate and enforcement, you can refer to it for reference.Real estate transactions and construction projects.
IV. Practical suggestions and legal basis
Action list: First, check the ownership of the house and its status of being sealed up or mortgaged before signing the contract; Second, immediately verify the reasons and time points of the house being sealed up and fix the evidence; Third, assess whether to raise an execution objection or file a lawsuit against an outsider's execution objection; Fourth, claim from the seller to rescind the contract, return the purchase price, and compensate for losses; Fifth, require the intermediary to truthfully disclose and keep the communication records. Legal basis: The provisions of the Civil Code of the People's Republic of China (implemented on January 1, 2021) regarding contract performance, breach of contract liability, and real estate property registration; The provisions of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and implemented on January 1, 2024) regarding execution objections and objections by outsiders; The Supreme People's Court's Provisions on Several Issues Concerning the Handling of Execution Objections and Review Cases by People's Courts. For real estate sales, you can refer to the relevant provisions.Property transactions and construction projects; It involves the execution and reference to property matters.Creditor's rights and debts, and enforcement; For issues concerning the validity of the contract, you can refer to the following materials for reference.Business and contract disputes in enterprisesThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Advice
Firstly, it is essential to check the status of the property being sealed up and mortgaged before signing the contract. Secondly, the timing of the seizure determines the path of remedies. Thirdly, those who meet the requirements can file an execution objection or a lawsuit against the execution of a third party. Fourthly, claiming restitution and compensation from the seller is the basic remedy. Fifthly, it is necessary to act quickly to avoid the house being disposed of. For property disputes, you can seek help through legal channels.Real estate transactions and construction projectsObtain a comprehensive solution for the service.
VI. Frequently Asked Questions
Q1: If the house is sealed off and the transaction fails, can I get a refund?
Generally, it is possible. If the house is sealed up and cannot be transferred due to the seller's reasons, the buyer may claim to rescind the contract, return the paid price and compensate for the losses, and at the same time, the seller may be held liable for breach of contract. The specific division of responsibilities needs to be based on the point of seizure and the provisions of the contract.
Q2: What should I do if the house has been sealed off before signing the contract?
If the seller conceals the fact of the seizure, the buyer may claim that the seller has breached the contract or committed fraud, and demand the rescission of the contract, the return of the purchase price, and compensation for losses; if the buyer still signs the contract despite knowing the fact, the responsibility sharing shall be determined in accordance with the contract and the degree of fault.
Q3: Can the buyer prevent the enforcement of the judgment against the house?
The following conditions must be met. Generally, before the seizure, the party concerned must have signed a legal and valid contract, paid all or most of the purchase price, actually occupied the house, and the transfer of ownership has not been completed due to reasons beyond their control. Only in this case can they file an execution objection or a lawsuit against a third party to request the exclusion of the execution.
Q4: Do real estate agents have any responsibilities?
The agent has the obligation to report and verify information truthfully. If the agent fails to disclose major matters such as the seizure of the property, causing losses to the buyer, the buyer may, depending on the circumstances, require the agent to bear corresponding compensation liability, which shall be determined in accordance with the contract provisions and the degree of fault.
Q5: How can I get back the down payment and deposit I've already paid?
You can demand a refund from the seller. If no agreement can be reached, the matter can be resolved through litigation. At the same time, keep payment receipts, contracts, and communication records, and apply for property preservation if necessary to prevent the seller from transferring assets and affecting the recovery of payments.
The above answer is based on the judicial practice in Beijing. The adjudicative guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence 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 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.