[Direct answer]In the Beijing area, it is considered a breach of contract to change one's mind after signing a purchase contract, and the party involved should bear corresponding responsibilities. If a deposit has been paid, according to Article 587 of the Civil Code of the People's Republic of China (effective January 1, 2021), the party paying the deposit shall not be entitled to request the return of the deposit if it fails to perform its obligations or performs them in a manner inconsistent with the contract, resulting in the failure to achieve the purpose of the contract. If a penalty clause for breach of contract has been agreed upon, the party paying the deposit shall pay the penalty according to the agreed terms. If the agreed amount is too high or too low, the party may request an adjustment, which shall generally be based on the actual losses and take into account the performance of the contract and the degree of fault. Compensation for losses shall be limited to the actual losses caused by the breach of contract and shall not exceed the losses that the breaching party could have foreseen or should have foreseen at the time of concluding the contract. Therefore, the specific amount of compensation depends on the contractual provisions, the nature of the deposit, the actual losses, and the existence of exemption clauses, and is not a fixed amount.

1. Problem background and typical scenarios

Buying a house is a major transaction, and it's not uncommon for people to change their minds after signing the contract due to financial reasons, qualification issues, or family circumstances. Typical scenarios include: not buying the house after signing the contract and paying the deposit, and the seller refusing to refund the deposit; the contract stipulates a high penalty fee, and the buyer requests an adjustment; being unable to fulfill the contract due to changes in purchase restrictions, loan restrictions, or loan disapproval; the seller claiming losses from a drop in housing prices and demanding compensation from the buyer for the price difference; and disputes over whether the deposit and penalty fee can be used concurrently. When handling such cases in Beijing, the court will review the contractual provisions, payment and performance status, degree of fault, and actual losses to comprehensively determine the scope of liability.

II. Key points of contention

First, can the penalty for the deposit and the penalty for breach of contract be applied simultaneously? Second, how should the penalty for breach of contract be adjusted if it is too high or too low? Third, the scope of actual losses and the burden of proof. Fourth, whether changes in policies or the failure to obtain a loan approval can constitute grounds for exemption from liability. Fifth, the allocation of responsibilities when either the buyer or the seller breaches the contract. Sixth, how to handle the intermediary fees and the taxes already paid.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm once represented a dispute case involving a pre-sale contract for commercial housing. On April 30, 2021, Zhang Quan signed a "Beijing City Commercial Housing Pre-sale Contract" with a real estate company to purchase a house in a certain residential area with a total price of 6,841,972 yuan. The contract stipulated that the house should be delivered by June 15, 2023, and the supplementary agreement provided a 90-day grace period. After the grace period expired, the company failed to deliver the house until March 5, 2024, a delay of nearly nine months. The lawyer represented the buyer in suing the company, claiming a breach of contract penalty of 118,366.12 yuan from the day after the grace period expired to the actual delivery date. The court determined that the contract and supplementary agreement were legal and valid, and adopted the lawyer's opinion that the COVID-19 pandemic, which had become normal before the contract was signed, should not be considered a force majeure; factors such as bad weather and government meetings also did not constitute force majeure; the grace period should be strictly applied according to the contract. In the end, the court ruled that the real estate company should pay the breach of contract penalty of 118,366.12 yuan and bear the litigation costs. Although this case involved the seller's breach of contract, the rules revealed in it are also applicable to the buyer's withdrawal: the determination of breach of contract liability relies on contractual provisions and foreseeability judgments, and the defenses claiming exemption from liability need to be strictly reviewed. Defenses lacking basis are unlikely to gain support.

IV. Practical suggestions and legal basis

Action list: First, evaluate the purchase eligibility, loan capacity, and funding arrangements before signing the contract to avoid signing blindly; Second, carefully read the deposit, penalty, and termination clauses in the contract; Third, if it is necessary to terminate the contract, negotiate with the other party as soon as possible to minimize losses through settlement and form a written agreement; Fourth, if the claim for the penalty is too high or too low, evidence of actual losses is required; Fifth, if it is impossible to perform the contract due to policy changes or unattributable reasons, fix the evidence in time and claim exemption from liability; Sixth, keep payment receipts, communication records, and policy documents. Those involved in real estate transactions can refer to this list for guidance.Real estate transactions and construction projects; Those involving contract termination and compensation can be combined togetherBusiness and contract disputes in enterprisesColumn. Legal basis: Articles 577, 584, 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 decisions.

5. Henglu Law Firm's Reminder

Firstly, revoking an offer constitutes a breach of contract, and the deposit is generally not refundable. Secondly, the deposit and the breach of contract penalty are usually applicable alternatively, and cannot be claimed simultaneously. Thirdly, if the breach of contract penalty is obviously excessive, the party concerned may request an adjustment, but must provide evidence of the actual losses. Fourthly, whether exemption from liability is applicable in the case of policy changes or loan disapproval requires specific analysis and should not be taken for granted. If you are currently facing similar issues, you can seek assistance throughReal estate transactions and construction projectsYou will receive a comprehensive solution for the service, and if there are any contract disputes, you can address them together.Business and contract disputes in enterprises板块。

VI. Frequently Asked Questions

Q1: Can I get a refund for the deposit if I change my mind after signing the contract?

Generally, this is not allowed. According to Article 587 of the Civil Code of the People's Republic of China, if the party who pays the deposit fails to perform the obligation or performs it in a manner inconsistent with the agreement, resulting in the failure to achieve the purpose of the contract, he shall not have the right to request the return of the deposit; if the party who receives the deposit breaches the contract, he shall return it in double. If the deposit has not been paid or there are other provisions in the contract, the matter shall be handled in accordance with the contract and the law. The amount of the deposit shall not exceed 20% of the subject matter of the main contract.

Q2: How is the penalty for breach of contract usually calculated?

An agreement shall be honored according to its terms. Where the contract stipulates a breach of contract penalty, the party shall pay it in accordance with Article 85 of the Contract Law; where the penalty is set too high or too low, the party may request the court or arbitration institution to adjust it, generally based on the actual losses and taking into account factors such as the performance of the contract and the degree of fault of the parties. Where there is no such stipulation, the party may claim compensation based on the actual losses, subject to the rule of foreseeability.

Q3: Can the deposit and the breach of contract penalty be claimed together?

Generally, a claim cannot be repeated. According to relevant regulations, if the parties have agreed on both the breach of contract penalty and the deposit, when one party breaches the contract, the other party can choose to apply either the breach of contract penalty or the deposit clause, but not both at the same time. The party in compliance with the contract may, based on the amount and the actual losses, choose the method that is more beneficial to itself to assert its rights.

Q4: Is it considered a breach of contract if the loan is not approved?

This needs to be assessed on a case-by-case basis. If the loan is not approved due to the buyer's own creditworthiness, income, or other factors, and the contract does not stipulate a corresponding dispute resolution mechanism, the buyer may still be liable for breach of contract. However, if the inability to fulfill the contract is due to unforeseen circumstances such as sudden adjustments to purchase and loan restrictions, the buyer may claim exemption from liability or rescind the contract in accordance with the agreement. It is recommended to clarify the handling method for unapproved loans in the contract to reduce potential disputes.

Q5: What if the seller also breaches the contract?

The buyer may claim corresponding offsets or mitigation of liability. If the seller also breaches the contract, such as failing to deliver on time, having defects in the house, or incomplete procedures, the buyer may claim compensation for his losses and use this to oppose the seller's claim of breach of contract. The court will allocate responsibility according to the degree of fault of both parties. It is recommended to comprehensively collect the performance and communication records of both parties to provide a basis for the allocation of responsibility.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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 real estate transactions·Attorney Tian Jiaoyan·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.