[Direct answer]In the Beijing area, when a second-hand house seller breaches the contract by raising the price, the buyer may choose to continue to perform the contract or to terminate the contract and claim compensation. Article 509 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that the parties shall fully perform their obligations in accordance with the agreement; Article 577 stipulates that if a party fails to perform the contractual obligations or performs them in a manner that does not conform to the agreement, it shall bear the breach of contract liabilities such as continuing to perform, taking remedial measures, or compensating for losses; Article 587 stipulates that if the party receiving the deposit fails to perform the debt or performs it in a manner that does not conform to the agreement, resulting in the failure to achieve the purpose of the contract, it shall return the deposit in double; Article 584 stipulates the scope of compensation for losses. Therefore, the buyer can either request to continue to perform the contract and assist with the transfer of ownership, or choose to terminate the contract and claim double return of the deposit, breach of contract damages, or losses in the difference in housing prices. The specific choice depends on the ownership of the house, the obstacles to performance, and the other party's ability to pay.

I. Problem Background and Typical Scenarios

The fluctuation of housing prices is the main reason for sellers to breach their contract. Typical situations include: after signing the contract, the housing prices rise, and the seller demands an increase in the price or delays the transfer of ownership; the seller has listed the house for sale elsewhere or is preparing to sell it to others; there is a mortgage, seizure, or the co-owners do not agree, and the seller uses this to refuse to perform the contract; the buyer has paid the deposit and part of the purchase price and actually taken over the house. When handling such matters in Beijing, lawyers usually first verify the ownership and the performance of the contract.Property sales and construction projectsIn business, whether one can continue to fulfill their obligations is the primary consideration.

II. Key points of contention

First, whether the contract is legal and valid and meets the conditions for continued performance. Second, whether there are any obstacles such as mortgages, seizures, or shared ownership rights. Third, whether the buyer has fulfilled the contractual obligations or is willing to continue to do so. Fourth, the application and selection of the deposit and the breach of contract penalty. Fifth, the calculation and proof of the loss of the price difference. Sixth, the necessity and timing of property preservation. Seventh, how to handle the situation where the house has already been sold to someone else.

III. Professional analysis by Henglue Lawyers

Henglu Law Firm advises that, when facing a seller's breach of contract, the buyer should first evaluate the condition of the property and their own demands. Firstly, if the ownership of the property is clear, there are no mortgages or seizures, and the buyer has fulfilled their obligations according to the contract, they can usually request continued performance and handle the transfer of ownership. During the litigation, they should apply for property preservation and seize the property to prevent it from being disposed of elsewhere. Secondly, if there are performance obstacles or the property has been acquired by a bona fide third party, it will be difficult to continue performance, so they can choose to rescind the contract, claim double refund of the deposit and breach of contract penalties, and claim compensation for the price difference caused by the rise in housing prices. Thirdly, the deposit and breach of contract penalties cannot be used interchangeably. They need to choose the more favorable option according to the contract and legal provisions. If the agreed breach of contract penalties are lower than the actual losses, they can request an adjustment. Fourthly, in terms of evidence, they should keep the contract, payment receipts, communication records, and evidence of the property market price, such as similar transaction cases and intermediary quotes. Fifthly, if the seller has already sold the property to a third party, they should check whether the third party constitutes a bona fide acquirer and decide on the claim path accordingly. The overall plan should be determined based on the condition of the property, market prices, and the other party's repayment ability. 恒略律师提示，面对卖家毁约，买方应先评估房屋状态与自身诉求。第一，若房屋权属清晰、无抵押查封，且买方已按约履行，通常可以诉请继续履行并办理过户；诉讼中应申请财产保全，查封房屋以防被另行处分。第二，若房屋存在履行障碍或已被善意第三人取得，继续履行难以实现，则可选择解除合同，主张双倍返还定金、违约金，并可就房价上涨造成的差价损失主张赔偿。第三，定金与违约金不能随意并用，需依合同约定与法律规定选择更有利的方案；若约定的违约金低于实际损失，可请求调整。第四，举证方面，应保留合同、付款凭证、沟通记录、房屋市场价格的证据，如同期成交案例与中介报价。第五，若卖家已将房屋另行出售，应审查第三人是否构成善意取得，据此决定主张路径。整体方案应结合房屋状态、市场价格与对方偿付能力综合确定。

IV. Practical suggestions and legal basis

Action recommendations: First, verify the ownership, mortgage, and seizure status of the house as soon as possible; Second, preserve contracts, payment records, and communication evidence to prove your own performance of contractual obligations; Third, promptly file a lawsuit and apply for property preservation to prevent the house from being disposed of; Fourth, choose to continue performing the contract or terminate the claim according to the situation; Fifth, prepare evidence of transactions and quotes during the same period to prove the loss of price difference. Legal basis: Articles 509, 577, 584, 585, and 587 of the Civil Code of the People's Republic of China (effective January 1, 2021); and the provisions on preservation of the Civil Procedure Law of the People's Republic of China (amended and effective January 1, 2022). For real estate transactions, please refer to the relevant provisions.Property transactions and construction projectsThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

First, assess whether you can continue to fulfill your obligations before deciding on a course of action. Second, preservation and seizure are key to preventing the house from being resold to someone else. Third, you usually have to choose between claiming a deposit or a breach of contract penalty, and you need to compare the two options. Fourth, the loss of the price difference must be supported by market evidence. Fifth, if the house has already been resold, check whether the third party acquired it in good faith. For disputes involving second-hand houses, you can seek legal assistance through the following channels:Property sales and construction projectsConsultation. The rules on statute of limitations and evidence shall be subject to the current laws and regulations and judicial rulings. For further information on the relevant procedures and practical points, please refer to our firm's materials.Real estate transactions and construction projectsAndBusiness and contract disputes in enterprises.

VI. Frequently Asked Questions

Q1: If the seller raises the price and refuses to sell, can we force him to transfer the ownership of the property to us?

If the contract is legal and valid, the ownership of the house is clear, and there are no obstacles such as mortgages or seizures, the buyer can request the seller to continue to perform the contract and have the court order the seller to assist with the transfer of ownership. If the seller fails to perform the contract, the buyer can apply for forced execution. If there are obstacles to performance or the house has been acquired by a bona fide third party, the buyer can usually only rescind the contract and claim compensation. Therefore, it is necessary to first verify the status of the house.

Q2: Can I ask for both the deposit and the penalty fee at the same time?

Generally, they cannot be used concurrently. According to the Civil Code of the People's Republic of China (effective January 1, 2021), when the provisions of the deposit and the penalty clause conflict, the parties may choose to apply the more favorable one. If the agreed penalty is lower than the losses caused, the party may request an increase; if it is too high, the other party may also request a reasonable reduction, which needs to be claimed in accordance with the actual situation.

Q3: The house prices have risen. How can I prove the loss of the price difference?

You can submit materials such as the transaction prices of similar houses in the same neighborhood and at the same time, the intermediary's quotations, appraisal reports, and online signing data, to demonstrate the gap between the contractually agreed price and the market price. If it's difficult to calculate the price difference accurately, you can apply for an appraisal or let the court determine it based on the evidence. The more comprehensive the evidence is, the more support your claim for compensation will have.

Q4: What should I do if the seller has sold the house to someone else?

It is necessary to review whether the third party constitutes a bona fide acquirer. If the third party acts in good faith, pays a consideration, and has completed the transfer of ownership, the buyer usually has difficulty demanding the transfer of ownership again, and may instead claim the rescission of the contract and request compensation for losses; if the third party is not a bona fide acquirer or has not yet completed the transfer of ownership, the buyer may claim continued performance in conjunction with protective measures. It is recommended to consult and secure evidence as soon as possible.

Q5: Can the seller still sell the house during the litigation process?

If the buyer has applied for property preservation and sealed off the house, the seller will not be able to handle the transfer of ownership, which can effectively prevent the house from being disposed of by others. Therefore, when suing, the buyer should apply for property preservation at the same time, provide guarantees, and handle the matter in accordance with the court's requirements. If the property is not preserved and the house is sold to others, it will be much more difficult to protect one's rights, and at that time, the buyer can only claim compensation.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations 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 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 publicly available adjudication rules, and is provided 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 the event of a dispute, please consult a practicing lawyer promptly.