[Direct answer]In the Beijing area, if developers fail to deliver the houses on time for no legitimate reason, buyers can sue them. Article 563 of the Civil Code of the People's Republic of China stipulates that if a party delays in performing the main obligations and fails to perform them within a reasonable period after being reminded, or if the delay in performing the obligations and other breaches of contract result in the inability to achieve the purpose of the contract, the party may rescind the contract. Article 577 stipulates that if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear such breach of contract liabilities as continuing performance, taking remedial measures, or compensating for losses.

1. Problem background and typical scenarios

In the pre-sale of commercial housing, it's not uncommon for buyers to pay the down payment or even arrange for a mortgage, only to have the project halted due to a broken funding chain or delayed delivery. Typical scenarios include: the agreed delivery date has passed for months or even years, but the developer still fails to issue a delivery notice; the supplementary agreement stipulates an extension period, but the developer claims that the extension period can be cumulated with other reasons; the developer claims force majeure exemption from liability due to reasons such as the pandemic, weather, meetings, or exams; the main structure of the house is completed, but the acceptance and filing procedures are not completed, failing to meet the delivery conditions. When courts in Beijing handle such cases, they will focus on reviewing the provisions of the contract and supplementary agreements, whether the delay facts and exemption clauses are valid, and then determine the liquidated damages and the request for rescission. It should be noted that there are often discrepancies in the statements of the same fact by both parties to the dispute, making the role of original documents and written materials particularly important. At the same time, relevant procedural deadlines are usually short. Once key deadlines are missed, it may directly affect the realization of rights, so it is necessary to prepare and preserve evidence as early as possible. When conducting a specific analysis, it is recommended to take the timeline as the main line, and match the contract, documents, correspondence records, and relevant legal basis one by one, forming a clear processing framework to facilitate the determination of the order and feasibility of various claims.

II. Key points of contention

Firstly, whether the delay meets the contractual or statutory conditions for termination. Secondly, whether the force majeure or third-party causes claimed by the developer can exempt them from liability. Thirdly, how the grace period is applied and whether it can be cumulated with other extensions. Fourthly, whether the standard of calculating the breach of contract penalty on a daily basis is too high or too low, and whether it can be requested to be adjusted. Fifthly, whether the mortgage loan contract can be terminated simultaneously after the dissolution of the purchase contract, and who will repay the remaining loan. Sixthly, whether the existence of quality defects in the house affects the determination of the delay and breach of contract. Seventhly, whether there are procedural flaws in the actions of administrative authorities or the other party. Eighthly, whether the calculation basis and rationale for losses are sufficient, and whether corresponding evidence can be provided. Ninthly, whether there are legitimate grounds for mitigating or exempting liability. In addition, attention should also be paid to whether the form of evidence is legal, whether key facts can be corroborated by each other, and the differences in cost, time, and feasibility of different handling solutions. On this basis, the priority path to be pursued should be determined.

III. Professional analysis by Henglue Lawyers

The practical experience of Henglue Lawyers is that the key to handling disputes over delayed delivery of housing lies in verifying the contractual provisions and the actual delivery conditions item by item. Firstly, check the provisions in the "Commercial Housing Pre-sale Contract" and supplementary agreements regarding delivery time, delivery conditions, grace period, and breach of contract penalties to determine the calculation starting point and standards. Secondly, review the developer's defense of force majeure: if the relevant circumstances were foreseeable at the time of contract signing or within normal management scope, they generally do not constitute force majeure; non-comprehensive suspension of work reasons such as bad weather, conferences, and exams generally cannot exempt liability. Thirdly, the grace period should be strictly applied according to the contract, and claiming to cumulate it with other extensions usually lacks contractual and legal basis. Fourthly, if the delay persists for many years and the project suspension results in the failure to fulfill the contractual purpose, the buyer may claim fundamental breach of contract and request to rescind the contract and return the purchase price; according to relevant judicial interpretations, if the purchase contract is rescinded, the mortgage loan contract may be rescinded simultaneously, and the remaining loan shall be repaid by the developer. Fifthly, timely preserving the developer's property and fixing evidence of project suspension, acceptance, and delivery are the basis for subsequent claims.
This case is handled by Beijing Henglu Law FirmTian JiayanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: First, check the delivery time, grace period, and penalty clause in the contract and supplementary agreement; Second, fix the facts of the delay and the evidence of the project's suspension, and send a reminder in time; Third, evaluate whether the conditions for termination have been met, and choose to claim for penalty or request a refund and return the house; Fourth, if the transaction involves a mortgage, claim to terminate the loan contract arrangement at the same time; Fifth, file a lawsuit and apply for property preservation at the same time; Sixth, pay attention to the statute of limitations and the time limit for providing evidence. For real estate transactions, you can refer to the relevant provisions.Property sales and construction projectsFor disputes involving mortgages and contract termination, you can refer to the following cases for reference.Business and contract disputes in enterprisesLegal basis: Articles 563, 577, and 585 of the Civil Code of the People's Republic of China (all of which came into effect on January 1, 2021) and the relevant judicial interpretations on commercial housing sales contracts. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, the provisions of the contract and the supplementary agreement serve as the basis for calculating the breach of contract penalty and determining the termination of the contract. Secondly, the defense of force majeure should be refuted item by item based on its foreseeability. Thirdly, if the house has not been delivered after the expiration of the grace period, the buyer can claim the breach of contract penalty. Fourthly, when the project is suspended or there is a fundamental breach of contract, it is advisable to claim the termination of the contract and preserve the evidence as soon as possible. Fifthly, mortgage buyers should pay attention to the simultaneous handling of the loan contract. For claims related to the delay in house delivery and the protection of rights in the event of a construction project being abandoned, they can seek legal redress through appropriate channels.Real estate transactions and construction projectsThe service receives support, and cases involving collective rights protection and contract disputes can be combined togetherBusiness and contract disputes in enterprisesFor reference, you can check the section related to the enforcement of judgment paymentsCreditor's rights and debts, and enforcementColumn.

VI. Frequently Asked Questions

Q1: Can I sue the developer if they fail to deliver the house on time?

Yes. If the developer fails to deliver the qualified houses within the time limit stipulated in the contract, it constitutes a breach of contract, and the buyer may claim the breach of contract penalty for late delivery according to the contract; if the delay lasts for many years and the project is suspended, resulting in the failure to achieve the contractual purpose, the buyer may also request to rescind the contract, return the paid housing money and interest, and claim compensation for losses. The facts and evidence of each case vary greatly, and the liability and remedies need to be judged comprehensively based on the contract stipulations, the actual performance of the contract, and the procedural time limits. It is recommended to collect and preserve evidence as soon as possible, claim rights on time, and fix any evidence that may be lost in time. Specific solutions should be evaluated and determined by professional lawyers after reviewing the materials.

Q2: If the handover of the house is delayed indefinitely, can I request to return the house and get a refund?

It is necessary to determine whether the agreed or statutory conditions for termination have been met. If there is a long-term delay, the project is suspended, and the buyer still fails to perform after being reminded, it usually constitutes a fundamental breach of contract. The buyer can request to terminate the pre-sale contract, return the down payment and the principal and interest of the loan already repaid, as well as various fees, and claim damages for breach of contract, subject to the contractual provisions and evidence. The facts and evidence of each case vary greatly, and the liability and remedies need to be judged comprehensively based on the contractual provisions, the actual performance of the contract, and the procedural deadlines. It is recommended to collect and preserve evidence as soon as possible, assert rights on schedule, and fix any evidence that may be lost in time. Specific solutions should be evaluated and determined by professional lawyers after reviewing the materials.

Q3: Can the epidemic or the weather be considered as force majeure for exemption from liability?

It depends on the timing of the occurrence and its predictability. If the relevant circumstances already existed or had become normal at the time of signing the contract, the developer should have been able to foresee them, and the developer generally cannot be exempted from liability. Factors such as bad weather, conferences, and exams that do not necessarily lead to a complete shutdown of work generally do not constitute force majeure. The developer must also provide evidence of the causal relationship with the delay. The facts and evidence of each case vary greatly, and the allocation of responsibilities and remedies need to be judged comprehensively based on the contractual provisions, the actual performance of the contract, and the procedural deadlines. It is recommended to collect and preserve evidence as soon as possible, assert rights on schedule, and promptly fix evidence that may be lost. Specific solutions should be evaluated and determined by professional lawyers after reviewing the materials.

Q4: How is the penalty for late delivery of the house calculated?

Subject to the provisions of the contract, the common practice is to pay a penalty of 0.01% to 0.05% of the daily rental amount. If the agreed standard reflects the true intention of both parties and does not violate legal provisions, the court will generally support it; if the agreed amount is obviously too high or too low, the parties may request the court to adjust it. Due to significant differences in the facts and evidence of each case, the determination of liability and remedies requires a comprehensive assessment based on the contract provisions, the actual performance of the contract, and the procedural deadlines. It is recommended to collect and preserve evidence as soon as possible, assert rights on schedule, and promptly fix any evidence that may be lost. Specific solutions should be evaluated and determined by professional lawyers after reviewing the materials.

Q5: Is it considered a delay in delivery if the house has defects?

Generally, it does. If the house fails to meet the delivery conditions stipulated in the contract, it constitutes a delay. Quality defects do not necessarily exempt the developer from the liability for breach of contract due to the delay. However, if the buyer has actually received and used the house, the impact of the delivery time and the starting point of the breach of contract penalty needs to be comprehensively determined based on the facts of receipt and evidence. The facts and evidence of individual cases vary greatly, and the responsibility for compensation and remedies need to be comprehensively judged based on the contract stipulations, the actual performance of the contract, and the procedural deadlines. It is recommended to collect and preserve evidence as soon as possible, claim rights on time, and fix evidence that may be lost in time. Specific solutions should be evaluated and determined by professional lawyers after reviewing the materials.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue 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 relevant evidence materials, so as to avoid missing the statutory time limit.Legal services for the purchase and sale of real estate·Attorney Tian Jiayan·Beijing Henglue 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.