[Direct answer]In the Beijing area, if the seller breaches the contract and fails to return the deposit, the buyer can generally claim double the amount of the deposit as compensation and demand that the seller bear contractual liability. According to Article 587 of the Civil Code of the People's Republic of China (effective January 1, 2021), if the debtor performs the obligation, the deposit shall be credited against the price or recovered; if the party paying the deposit fails to perform the obligation or performs it in violation of the contract, resulting in the failure to achieve the purpose of the contract, it shall not have the right to request the return of the deposit; if the party receiving the deposit fails to perform the obligation or performs it in violation of the contract, resulting in the failure to achieve the purpose of the contract, it shall return double the amount of the deposit. Accordingly, if the seller, as the party receiving the deposit, breaches the contract and results in the failure to achieve the purpose of the contract, the buyer may claim double the amount of the deposit; if the buyer chooses to demand the seller to continue to perform the contract, the buyer may also claim that the seller bear contractual liability and compensate for losses. In practice, two points need special attention: first, distinguish between the deposit and the advance payment, which generally do not have the effect of the penalty for breach of contract; second, the buyer should claim rights within the statutory period and timely fix the contract, payment vouchers, and communication records, and, if necessary, entrust a lawyer to sue and apply for property preservation.

I. Problem background and typical scenarios

In transactions of second-hand houses and commercial housing, it's not uncommon for sellers to change their minds after receiving the deposit. Typical situations include: the seller refuses to transfer the ownership due to rising housing prices and demands an additional payment; the seller sells the house to someone else; the contract does not explicitly state "deposit" but instead uses the term "booking fee", leading to disputes over its nature; and the seller goes missing or delays after the buyer has made the payment. In Beijing, where property transactions involve large sums, the amount of the deposit and the liability for breach of contract often directly affect whether the transaction can proceed. Buyers need to assert their rights in a timely and standardized manner.

II. Key points of dispute

First, the applicable conditions of the penalty for the deposit, whether it is based on the failure to achieve the contractual purpose. Second, the difference between the deposit and the advance payment, and how the terms of the contract affect their nature. Third, choosing to return the deposit in double or requiring continued performance, and how to make a trade-off. Fourth, the burden of proof and the scope of compensation for breach of contract. Fifth, how to prevent the seller from transferring property and evading enforcement. Only by clarifying these issues can we determine the claim settlement plan.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm once represented a dispute over a pre-sale contract for commercial housing: The buyer signed a pre-sale contract with the developer and agreed on the delivery time, but the developer failed to notify the buyer to move in until nearly nine months after the due date. After accepting the client's commission, the lawyer sorted out the core provisions on the grace period and the standard of breach of contract in the contract and supplementary agreement, collected payment receipts, move-in notifications, and completion and acceptance registration materials to form a complete chain of evidence. The lawyer refuted the developer's defenses such as force majeure one by one, and claimed that the breach of contract penalty should be calculated according to the agreed standard. In the end, the court supported the full breach of contract penalty. This case shows that when the seller (the vendor) breaches the contract, the key for the buyer to claim breach of contract liability lies in whether the contract basis is clear, whether the evidence is sufficient, and whether the defenses can be effectively refuted. In the case where the seller breaches the contract after receiving the deposit, the claim should also be based on the contract terms and payment facts, and the buyer should claim double return of the deposit or continue to perform the contract and compensate for losses. At the same time, the buyer should evaluate whether the seller has the ability to perform the contract and clues to the seller's property, and apply for preservation measures if necessary to avoid winning the lawsuit but having difficulty in enforcement. This case is 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 list: 1. Check the wording and amount of the deposit clause in the contract to clarify the application of the deposit penalty clause; 2. Retain payment receipts, transfer records, and communication evidence to prove the delivery of the goods; 3. Based on whether the transaction can continue, choose to claim double refunds or demand continued performance and compensation for losses; 4. If the seller shows signs of transferring assets, apply for property preservation in a timely manner; 5. If the other party refuses to perform its obligations, sue as soon as possible and apply for forced execution after winning the lawsuit. Legal basis: Articles 586, 587, 577, and 584 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding deposits, breach of contract liability, and compensation for losses. For real estate sales and construction projects, refer to the relevant provisions.Real estate transactions and construction projectsServices. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, the deposit and the booking deposit are different. Only the deposit is subject to the penalty of double refund. Secondly, claiming double refund is based on the premise that the purpose of the contract cannot be achieved. Thirdly, you can also choose to continue to perform the contract and claim breach of contract compensation. Fourthly, fix the payment and collect evidence in time to avoid difficulties in providing evidence. Fifthly, be vigilant against the seller transferring property and apply for preservation of evidence when necessary. For matters involving debts and enforcement, you can seek legal advice together with a lawyer.Creditor's rights and debts, and enforcementFor contract disputes involving corporate transactions, you can seek advice fromBusiness and contract disputes in enterprisesThe team involved in real estate intermediary and transaction services can be referred to for reference.Real estate transactions and construction projectsFor columns, if there are any other difficult issues, we can assist with themSpecialised legal services.

VI. Frequently Asked Questions

Q1: What should I do if the seller breaches the contract and fails to return the deposit?

The party receiving the deposit may claim a double refund of the deposit. According to Article 587 of the Civil Code, if the party receiving the deposit fails to perform its obligations and the purpose of the contract cannot be achieved, it shall refund the deposit in double; it may also choose to require the other party to continue to perform the contract and claim breach of contract liability.

Q2: What is the difference between a deposit and a booking fee?

The deposit is subject to the penalty for breach of contract and has the effect of guaranteeing the performance of the contract; the advance payment is generally regarded as a prepayment and does not have the effect of a penalty for double return. If the contract states "deposit", there is usually no basis for claiming double return.

Q3: Can we ask the seller to continue to fulfill the contract?

Yes. If the house can still be delivered and the transaction meets the conditions for continuation, the buyer can request the seller to continue to perform and handle the transfer, and at the same time, claim that the seller should bear the liability for breach of contract such as late performance and compensate for the corresponding losses.

Q4: Are there any restrictions on the amount of the deposit?

Yes. According to Article 586 of the Civil Code, the amount of the deposit shall be agreed upon by the parties, but it shall not exceed 20% of the subject matter of the main contract. The excess part shall not produce the effect of the deposit. In practice, it shall be determined according to the actual payment.

Q5: How to prevent sellers from absconding after selling their houses?

It is necessary to secure evidence and file a lawsuit as soon as possible, and if necessary, apply for property preservation to seize the house or account; after the judgment takes effect, apply for enforcement in a timely manner. If it is found that the seller has sold the house to others, the buyer can claim corresponding responsibilities at the same time.

The above questions and answers are mainly based on the judicial practice in the Beijing area. There may be differences in the interpretation of judgments in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Tian Jiaoyan·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available 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 a dispute arises, please consult a practicing lawyer in a timely manner.