[Direct answer]In the Beijing area, it depends on whether the contract has been established and taken effect. If the buyer and seller have signed a legally valid house purchase contract (including the situation where the subscription agreement already contains the main terms), and the seller refuses to perform according to the contract, demands a price increase, or sells the property to others, this constitutes a breach of contract. The buyer can request the seller to continue to perform the contract, assist in handling the transfer, or claim damages, apply the penalty for the deposit, and compensate for losses. If the two parties are still in the negotiation stage and have not yet reached an agreement on the subject matter, price, and other main terms, the price increase is a normal transaction negotiation and generally does not constitute a breach of contract. However, if the seller violates the principle of good faith during the negotiation and causes the other party to suffer losses of reliance interests, the seller may still bear the liability for breach of contract. According to the provisions of the Civil Code of the People's Republic of China (implemented on January 1, 2021) on the establishment of contracts, breach of contract liability, and liability for breach of contract, the key to judgment lies in whether the contract has been established, whether the main terms are clear, and whether there are valid deposit clauses. Therefore, whether it is illegal for the seller to raise the price midway depends on the contract status and specific agreements, and cannot be generalized.

I. Problem Background and Typical Scenarios

In second-hand housing transactions, price fluctuations often lead to sellers' regret or price increases. There are four typical scenarios: First, after signing the contract, the seller demands a price increase before transferring ownership; Second, the seller reneges on the deal for reasons such as their spouse's disapproval or lack of disposal rights; Third, the parties only signed a purchase agreement or an intention agreement, and the seller subsequently raises the price; Fourth, the seller collects the deposit and then sells the property to someone else, resulting in a failed transaction. In the Beijing area, second-hand housing transactions involve high amounts and long cycles. It often takes several months from signing the contract to transfer ownership, during which market changes and family disputes may trigger disputes. Buyers should clearly stipulate the breach of contract liability, deposit clauses, and payment schedules at the time of signing the contract.

II. Key points of contention

First, whether the contract is established and how to determine the validity of the subscription letter and the intention agreement. Second, the difference between the deposit and the earnest money, and the application of the earnest money penalty. Third, the nature of the seller's breach of contract in demanding a price increase and the manner of assuming responsibility. Fourth, the choice and feasibility of continuing to perform the contract and compensating for losses. Fifth, the handling of unauthorized disposition and the lack of the spouse's consent. Sixth, the handling of the intermediary's liability and the intermediary's remuneration.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm handles second-hand housing disputes by first assessing the contract status and then determining the direction of the claim. If the contract has already been established and become effective, the seller's request for a price increase essentially constitutes a breach of contract. The buyer may choose to demand continued performance, assist with the transfer of ownership, or rescind the contract and request the return of the purchase price, double the refund of the deposit, and payment of damages and compensation for actual losses. There are pros and cons to both options: the former can achieve the purchase goal, but requires that the property ownership be clear, not have been disposed of elsewhere, and meet the conditions for performance; the latter is relatively flexible, but may face difficulties in enforcement. If the case is still in the negotiation stage, price increases are generally not prohibited by law. However, if the seller has already collected the deposit, issued a written commitment, or the parties have reached an agreement on the main terms, the contract may be deemed to have been established, resulting in breach of contract liability. Special attention should be paid to situations involving unauthorized disposition and spousal disagreement: if the property is a couple's jointly owned asset, disposition generally requires the consent of both parties. The buyer should verify the ownership and marital status to avoid being unable to transfer ownership due to the seller's unilateral signing of the contract. Overall, securing evidence as soon as possible and clarifying the contract status are prerequisites for choosing between continued performance and claiming compensation.

IV. Practical suggestions and legal basis

Action suggestions: 1. Before signing the contract, verify the ownership of the property, the existence of any mortgages or seizures, and confirm the seller's right to dispose of the property and their spouse's consent. 2. Include the purchase price, payment schedule, transfer date, and breach of contract penalties in the written contract. 3. Clearly stipulate the deposit clause and distinguish between deposits and reservation fees. 4. Retain communication records and payment receipts to document evidence of the seller's price increase. 5. Assess the feasibility of continuing the contract and compensating for losses, and make a timely decision. 6. For transactions involving real estate agents, clarify the agent's obligations and responsibilities. For property transactions and contract disputes, you can refer to the relevant legal provisions.Real estate transactions | Construction projectsFor services involving the establishment of contracts and remedies for breach of contract, you can refer to the relevant provisions.Business and Commerce | Contract DisputesSection. Legal basis: The provisions of the Civil Code of the People's Republic of China (effective as of January 1, 2021) concerning the formation of contracts, deposit, breach of contract liability, and liability for breach of contract, the specific application of which shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Advice

Firstly, whether the contract is established is a prerequisite for determining whether the price increase constitutes a breach of contract. Secondly, if the subscription agreement contains the main clauses, it may also constitute a valid contract. Thirdly, the deposit and the booking deposit are different. Only the deposit has the effect of penalty. Fourthly, it is necessary to evaluate and choose between continuing to perform the contract and compensating for the losses in advance. Fifthly, it is necessary to verify the ownership and the spouse's opinion to avoid being unable to transfer the ownership. For cases involving price increases and breaches of contract in second-hand housing, it can be resolved through legal means.Real estate transactions | Construction projectsThe service obtains an overall solution, which involves the integration of contract terms and breach of contract provisions.Business and Commerce | Contract DisputesFor reference, you can refer to the section regarding the enforcement of compensation paymentsCreditor-debtor relations | Enforcement cases板块。

VI. Frequently Asked Questions

Q1: If the seller raises the price after signing the contract, can I request them to continue to fulfill the contract?

Generally, it can be claimed. If the contract is legal and valid, the ownership of the house is clear, and there is no separate disposition, the buyer can request the seller to continue to perform the contract and assist in handling the transfer of ownership. If the house has been sold to a bona fide third party and the registration has been completed, or there are other obstacles to performance, it may not be feasible to continue to perform the contract. In this case, the buyer can switch to claiming breach of contract damages and compensation for losses, which needs to be evaluated and selected based on the specific circumstances.

Q2: Can I get the deposit back?

The penalty clause for deposits applies. If the buyer pays a deposit, and the seller breaches the contract and fails to perform the contract, the buyer may demand a double refund of the deposit; if the buyer breaches the contract, he/she shall not be entitled to demand a refund of the deposit. It is necessary to distinguish between deposits and advance payments. The latter generally do not have the effect of a penalty. The portion of the deposit exceeding the statutory proportion may not produce the effect of a deposit.

Q3: If the seller increases the price after the buyer has only signed the subscription agreement, does that constitute a breach of contract?

It depends on the content of the subscription agreement. If the subscription agreement has already reached an agreement on the main terms such as the subject house, the price, the payment method, and the signing time, and both parties have the intention to be bound by it, it can generally be determined that the contract is established, and the seller's price increase constitutes a breach of contract; if the content of the subscription agreement is general and merely an intentional document, the legal binding force is limited, and the price increase may not constitute a breach of contract.

Q4: What should I do if the seller's spouse doesn't agree?

This may affect the performance of the contract. If the house belongs to the couple's joint property, its disposition generally requires the consent of both parties. The buyer should verify the marital and ownership status before signing the contract and require the spouse to sign or provide a consent document. If the transfer of ownership is impossible due to the spouse's refusal, the buyer may claim breach of contract against the contracting party; if it constitutes an unauthorized disposition, it is also necessary to consider whether the buyer acted in good faith and other factors when handling the matter.

Q5: Can I claim compensation for the price increase and the price difference?

It might be possible. If the seller breaches the contract, causing the buyer to need to purchase a house at a higher price elsewhere, or if the house price rises and causes losses, the difference in price claimed by the buyer falls within the scope of compensation, but it usually needs to be based on the contractual provisions and actual losses, and is subject to the rules on adjusting the breach of contract penalty. If the agreed breach of contract penalty is lower than the actual losses, the buyer can request an increase; whether the request will be supported will be comprehensively evaluated by the arbitration institution.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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