[Direct answer]In the Beijing area, the process typically proceeds in the following steps: preserving evidence, determining breach of contract, making written claims, selecting remedies, and securing litigation preservation. The Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear contractual liabilities such as continuing performance, taking remedial measures, or compensating for losses; if a party explicitly states or demonstrates by its actions that it will not perform its main obligations, the other party may terminate the contract; the parties may agree that the breaching party shall pay a breach of contract penalty, or they may agree on a deposit. If the party receiving the deposit fails to perform its obligations, it shall double the amount of the deposit and return it. Accordingly, in the face of breach of contract situations such as the seller's refusal to cooperate with the transfer of ownership, late delivery of the house, selling the same house to two buyers, or refusal to vacate the premises, lawyers typically first preserve evidence and clarify the nature of the breach, then issue a written notice demanding continued performance or termination of the contract, and claim penalties for the deposit, breach of contract penalties, or damages. If necessary, they apply for property preservation and initiate litigation.
I. Problem Background and Typical Scenarios
In the process of buying and selling a house, the seller may regret the deal due to rising house prices, family reasons, or finding another buyer. They may violate the contract by delaying the transfer of ownership, refusing to hand over the house, or even selling the same house to two different buyers, causing significant losses to the buyer. Typical situations include: failing to cooperate after the agreed transfer deadline; demanding a price increase after signing the contract or refusing to sell otherwise; and selling the house to a third party. Such disputes are quite common in second-hand housing transactions in Beijing, and buyers often need professional assistance to resolve them.
II. Key points of contention
First, whether the seller's actions constitute a breach of contract or a fundamental breach of contract. Second, whether the buyer can choose to continue to perform the contract or to rescind the contract. Third, how to claim the deposit, the breach of contract penalty, and the damages, and whether they can be imposed concurrently. Fourth, how to seek remedies when the seller sells the same house to two different buyers and the ownership has already been transferred to others. Fifth, how to preserve the house and the seller's property during the litigation.
III. Professional analysis by Henglue Lawyers
Here is the translation of the Chinese text into English: Henglue Lawyers' Practical Experience in Real Estate Disputes: Five Steps 1. **Evidence Fixation**: Collect sales contracts, supplementary agreements, payment and receipt vouchers, loan and online signing materials, communication records, and reminder notices to clarify the performance deadline and breach of contract facts, forming a complete chain of evidence. 2. **Breach of Contract Identification**: Analyze whether the seller's actions constitute a delay in performance, refusal to perform, or fundamental breach of contract. Distinguish between situations where performance can continue and those where the contractual purpose cannot be achieved, thereby determining the appropriate remedial approach. 3. **Written Demands**: Send a written reminder or termination notice to the seller, demanding performance within a specified timeframe or confirming the contract's termination, and claiming penalties for the deposit, breach of contract damages, or compensation for losses. Retain proof of delivery. 4. **Remedy Selection**: If the buyer wishes to continue purchasing the property and the house has not been transferred to another party, they may demand continued performance and apply for preservation measures. If the buyer no longer wishes to proceed or the property has been acquired by a bona fide third party, they may terminate the contract and claim double refund of the deposit, breach of contract damages, and compensation for price differences. 5. **Litigation and Enforcement**: If no agreement is reached, promptly initiate litigation, apply for property seizure or preservation of the seller's assets, and request enforcement after winning the case. Where necessary, concurrently pursue corresponding responsibilities of the intermediary. 6. **Damage Claims**: Includes losses from price differences, loss of funds during payment, intermediary fees and tax fees, as well as reasonable expenses incurred for rights protection. If the damages exceed the breach of contract penalties, additional compensation may be requested. Overall, responding to a seller's breach of contract requires timeliness, professionalism, and evidence-based approaches. Delays often lead to increased losses. Henglue Lawyers typically first assess the feasibility of continued performance or contract termination, then select the most favorable path for the client.
IV. Practical Suggestions and Legal Basis
Action suggestions: First, immediately fix the contract, payment receipts, and communication records, and clarify the facts and deadlines of the breach of contract; Second, send a written reminder or notice of termination, and keep the delivery receipts; Third, depending on whether the house has been disposed of, choose to continue to perform the contract or terminate the contract and claim compensation; Fourth, apply for property preservation as soon as possible to prevent the house and the seller's property from being transferred; Fifth, claim compensation such as the penalty for the deposit, the breach of contract penalty, or the loss of the price difference, and, if necessary, request an increase in the breach of contract penalty. For real estate transactions and construction, you can refer to the relevant provisions.Real estate transactions and construction projectsFor matters involving the recovery and enforcement of creditor's rights, you may refer to the following for reference.Creditor's rights and debts, and enforcementLegal basis: Articles 563, 577, 585, and 587 of the Civil Code of the People's Republic of China (effective January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Advice
Firstly, after the seller breaches the contract, they should fix the evidence and send a written notice as soon as possible to avoid the loss from expanding. Secondly, whether to continue to perform the contract or to rescind the contract depends on whether the house has been disposed of and whether the contractual purpose can be achieved. Thirdly, the deposit and the breach of contract penalty generally cannot be claimed in full at the same time, and it is necessary to choose or adjust them according to the law. Fourthly, property preservation is the key to ensuring that the judgment can be enforced after winning the lawsuit, and it is advisable to apply for it as soon as possible. For issues related to enterprise operation and contracts, you can refer to the relevant provisions.Business and contract disputes in enterprisesFor matters involving family property, you can refer to the following for reference.Divorce litigation and family disputesFor matters involving personal rights and interests, you can refer to the following for reference.Personal injury and medical disputesFor other difficult matters, you can refer to the relevant materials for further guidance.Special services and other cases.
VI. Frequently Asked Questions
Q1: If the seller breaches the contract, can we request to proceed with the transfer of ownership?
Yes, provided that the contract is valid, the house has not been acquired by a bona fide third party, and the conditions for continued performance are met. If the buyer is willing to continue purchasing the house, they can claim continued performance and apply for property preservation to seize the house. If the house has been transferred to a bona fide third party, then usually the only option is to terminate the contract and claim breach of contract compensation.
Q2: How much compensation can a seller receive for breach of contract?
The buyer may claim a double refund of the deposit or a penalty for breach of contract, and may also claim compensation for the loss of the price difference, the loss of funds occupied by the payments made, and reasonable expenses. If the loss exceeds the agreed penalty for breach of contract, the buyer may request an increase; if the agreed penalty for breach of contract is excessively high compared to the loss, the seller may also request a reasonable reduction, which shall be determined by the court.
Q3: Can I claim both the deposit and the breach of contract penalty together?
Generally, it is not possible to claim both the deposit and the breach of contract penalty in full at the same time. The law imposes corresponding restrictions on the concurrent use of the deposit and the breach of contract penalty, usually requiring the claimant to choose one or adjust the claim accordingly. If the deposit is insufficient to compensate for the losses, the claimant may seek compensation for the excess amount separately. For specific choices and calculations, it is recommended to consult a lawyer for assessment and determination.
Q4: What should a seller do if they sell the same house to two different buyers?
It depends on whether the house has been transferred. If it has been transferred to a bona fide third party, it is usually difficult to recover the house, but you can request the seller to compensate for the losses. If the transfer has not yet taken place, you can claim for continued performance and apply for preservation, while also holding the seller accountable for breach of contract. You should take action as soon as possible to avoid further damage to your rights.
Q5: Will the house be sold during the litigation process?
Possibly. To prevent the seller from transferring or mortgaging the house during the litigation, you should apply for property preservation and seize the house in time and provide guarantees. After the preservation, the disposition of the house will be restricted, which will help ensure the enforceability of the judgment. Whether to grant the application will be decided by the court. It is recommended to submit the application as soon as possible.
The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law 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 the purchase and sale of real estate·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. If you encounter disputes, please consult a practicing lawyer in time.