[Direct answer]In the Beijing area, if a property developer fails to deliver a project within two years after construction work has been suspended, purchasers may claim to rescind the contract and withdraw from the purchase according to the contract terms or legal provisions. Typically, the contract's provisions on delivery time and the consequences of late delivery will first be reviewed. If there are no clear contractual provisions or insufficient provisions, the purchaser may invoke the statutory provisions on rescission in the Civil Code of the People's Republic of China (effective January 1, 2021) and the provisions on delayed delivery after reasonable notice in the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over the Sale of Commercial Housing Contracts (amended on December 29, 2020 and effective January 1, 2021) to claim rescission after giving written notice. After rescission, the purchaser may demand the return of the paid purchase price and interest, as well as compensation for losses; where a mortgage loan is involved, the purchaser shall also claim the rescission of the loan and guarantee contracts. The specific terms shall be subject to the contract provisions, the project situation, and the currently effective laws, regulations, and judicial rulings.

I. Problem background and typical scenarios

When a real estate project is stalled for a long time, the most concern of buyers is whether they can get a refund and withdraw from the contract. Typical scenarios include: the contractually agreed delivery date has passed for two years; the project has been stalled for a long time and there is no definite resumption date; the buyer has paid the full amount or applied for a mortgage; the developer is facing financial difficulties or even involved in litigation; and the owners hope to withdraw from the contract collectively. In the above situations, the key points are the conditions for termination, the operational steps, and the feasibility of implementation. Relevant real estate and commercial housing cases can be referred to for reference.Real estate transactions and construction projects.

II. Key points of contention

Firstly, the application of the contractual right of rescission and the statutory right of rescission. Secondly, the form of written notice and a reasonable time limit. Thirdly, the return of the paid purchase price and interest. Fourthly, the scope of compensation for losses. Fifthly, the handling of mortgage loans and guarantee contracts. Sixthly, pre-litigation preservation and recovery of funds. Seventhly, the organization and coordination of collective house returns. The above issues determine whether the house return can be realized. For matters related to enforcement, please refer to the relevant provisions.Creditor's rights and debts, and enforcement.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers advise in the practice of commercial housing disputes that applying for a withdrawal from the contract should proceed in stages, with an emphasis on evidence and enforcement. First, review the contract to check the delivery time, default liability for breach of contract, and termination clauses to determine whether there is a contractual right of termination. Second, issue a notice of default. If the contract does not stipulate or the provisions are unclear, a written notice of default may be sent to the developer, requiring them to deliver within a reasonable timeframe and retaining the delivery receipt. If the developer still fails to perform after the notice, claims for termination may be pursued in accordance with the provisions of the Civil Code of the People's Republic of China and the judicial interpretations on the sale of commercial housing. Third, formulate claims. After termination, the buyer may demand the return of the paid purchase price and interest, as well as compensation for losses. For mortgages, claims for termination of the loan and guarantee contracts should also be made to avoid the situation where the sale contract is terminated but the buyer still needs to repay the loan. Fourth, secure evidence in a timely manner. Before and after suing, applications for seizure of the developer's or project-related assets can be made to increase the likelihood of recovering payments. For projects entering reorganization or bankruptcy procedures, claims should be filed in accordance with the established procedures. Finally, consider collective rights protection. Unified claims by homeowners can facilitate coordination and negotiation, but clear representation and cost-sharing should be defined. Henglue Lawyers typically first assess the conditions for termination and the developer's solvency, then develop a comprehensive plan for termination, claims, and enforcement, and provide honest risk warnings. For real estate and commercial housing disputes, reference can be made to the relevant provisions of the Civil Code of the People's Republic of China and the judicial interpretations on the sale of commercial housing.Real estate transactions and construction projects.

IV. Practical suggestions and legal basis

Action list: First, check the contract delivery and termination clauses; Second, send a written reminder and retain the delivery receipt; Third, fix the payment, mortgage, and evidence of suspension of work; Fourth, handle the loan and guarantee contracts simultaneously upon termination; Fifth, evaluate the developer's property clues and apply for preservation; Sixth, consider collective rights protection and cost sharing. Legal basis: The provisions on contract termination, breach of contract liability, and guarantees in the Civil Code of the People's Republic of China (effective January 1, 2021); The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commercial Housing Sales Contracts (amended on December 29, 2020 and effective January 1, 2021) regarding delayed delivery and termination, and the handling of loan contracts; The Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and effective January 1, 2024) regarding preservation and enforcement. For real estate disputes, please refer to the relevant provisions.Real estate transactions and construction projects; For reference on execution, please refer to the following link:Creditor's rights and debts, and enforcementFor specific services, you can refer to the relevant guidelines.Specialised legal servicesThe specific terms shall be subject to the contractual provisions, the project circumstances, and the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

First, review the contract and then determine whether there is a contractual or statutory right of rescission. Second, it is important to send written notices and retain proof of delivery. Third, when exercising the right of rescission, the mortgage loan and guarantee contract should be handled together. Fourth, early preservation of evidence can help increase the likelihood of recovering payments. Fifth, it is necessary to rationally anticipate the difficulty of enforcement and share the costs through collective protection. For matters involving real estate and specialized services, legal assistance can be sought through appropriate channels.Real estate transactions and construction projectsObtain a comprehensive solution for the service.

VI. Frequently Asked Questions

Q1: Can I get a refund for the apartment if the construction has been suspended for two years?

It can usually be claimed. If the contract stipulates the delivery time and the conditions for terminating the contract due to a delay, the contract can be terminated in accordance with the agreement; if there is no agreement or the agreement is unclear, the contractor can claim to terminate the contract in accordance with the law after giving a written notice, and request the return of the purchase price and interest, as well as compensation for losses.

Q2: What is the check-out process?

First, check the contract and evidence, then send a written reminder and keep the delivery receipt; if the delivery is still not made after the reminder, you can send a notice of rescission or initiate litigation to claim the rescission of the contract and a refund, and apply for property preservation if necessary.

Q3: What should I pay attention to when issuing a notice of default?

It should be sent to the developer in writing, specifying the deadline for delivery, and delivered in a traceable manner, such as by express delivery with a receipt, or by notarized delivery, etc., so as to prove that the reminder procedure and the time have been fulfilled.

Q4: How to handle the mortgage loan?

They should be claimed together. After the termination of the sales contract, the buyer may request the termination of the loan and guarantee contracts according to law, stop calculating interest and deal with the paid amounts, so as to avoid the situation that the buyer still needs to continue repaying the loan after the termination of the contract.

Q5: What should developers do if they run out of money?

It is necessary to verify the developer and the project's property clues, apply for property preservation, pay attention to the project's restructuring or bankruptcy procedures, and timely declare creditor's rights; the difficulty of recovering payments depends on the asset situation and the order of compensation. It is advisable to take action as soon as possible and have reasonable expectations.

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 for specific situations.

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. →Specialised services - Legal services·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. In case of disputes, please consult a practicing lawyer in time.