[Direct answer]In the Beijing area, whether the seller's attorney fees can be borne by the other party in the event of a breach of contract depends on the contractual provisions and legal regulations. In principle, the attorney fees incurred by the parties in litigation are borne by each party; however, if the contract explicitly stipulates that the breaching party shall bear the attorney fees, or if there are special provisions in laws and judicial interpretations, the other party can be required to bear the fees. Article 577 of 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 such breach of contract liabilities as continuing performance, taking remedial measures, or compensating for losses; Article 584 stipulates that the amount of compensation for losses shall be equivalent to the losses caused by the breach of contract, including the benefits that could have been obtained after the performance of the contract. Therefore, it is recommended to explicitly stipulate in the contract that the breaching party shall bear attorney fees and other litigation costs, so as to provide a basis for claims.
1. Problem background and typical scenarios
The burden of attorney's fees is a common concern in second-hand housing disputes. Typical situations include: the contract does not stipulate who should bear the attorney's fees; the contract stipulates that the defaulting party should bear the fees, but the stipulation is vague; the buyer defaults or the seller breaches the contract, and both parties hire lawyers and claim that the other party should bear the fees; the case involves other expenses such as agency fees, appraisal fees, and preservation fees; the other party defends against the claim on the grounds that attorney's fees do not constitute direct losses. When handling such matters in the Beijing area, lawyers usually first review the contract's default clauses.Property sales and construction projectsIn business, the clarity of the terms often determines whether a claim for expenses can be successfully made.
II. Key points of contention
Focus One: Does the contract explicitly stipulate that the attorney's fees shall be borne by the defaulting party? Focus Two: Is the agreement specific to the litigation, arbitration, and enforcement stages? Focus Three: Have the attorney's fees actually been incurred and can supporting documents be provided? Focus Four: Is the amount of the attorney's fees reasonable? Focus Five: Are there any special provisions in laws or judicial interpretations? Focus Six: Claims for other litigation expenses such as preservation fees and appraisal fees. Focus Seven: What is the relationship between the default damages and the attorney's fees?
III. Professional analysis by Henglue Law Firm
Henglue Law Firm advises that whether the fees can be borne by the other party depends on the prior arrangements in the contract. Firstly, if the contract clearly stipulates that the lawyer's fees incurred by the other party in protecting their rights through litigation, arbitration, etc. due to the breach of contract by the defaulting party shall be borne by the defaulting party, such a stipulation is usually supported. When claiming, the client should provide the entrustment contract, invoices, and payment certificates. Secondly, if the contract does not stipulate this, the client usually bears the fees themselves; however, laws or judicial interpretations stipulate that in certain types of cases (such as intellectual property, guarantees, etc.), the lawyer's fees can be included in the scope of compensation, and claims can be made based on this. Thirdly, the reasonableness of the amount will also be reviewed. Any part that is obviously higher than the normal standard may not be supported. Fourthly, in addition to the lawyer's fees, reasonable expenses actually incurred in protecting rights, such as preservation fees, appraisal fees, and expert witness fees, can also be claimed as part of the breach of contract damages. Fifthly, taking a loan case handled by Attorney Tian Jiaoyan of our firm as an example, the parties clearly stipulated in the loan agreement that if the borrower fails to repay the loan on time, they shall voluntarily bear the litigation fees, attorney's fees, and preservation fees, etc. Based on this, the attorney claimed the principal and interest together with the relevant fees, effectively implementing the breach of contract liability clause. This case shows that prior arrangements on the bearing of protection fees can significantly enhance the feasibility of claims.
IV. Practical Suggestions and Legal Basis
Action suggestions: First, when signing the contract, it is necessary to clearly stipulate that the defaulting party shall bear the attorney's fees and other expenses for protecting rights; Second, the provisions should be specific to the stages of litigation, arbitration, and enforcement; Third, keep the attorney's entrustment contract, invoices, and payment vouchers; Fourth, pay attention to the reasonableness of the amount and avoid claiming obviously excessive parts; Fifth, include preservation fees, appraisal fees, etc. in the list of losses. Legal basis: Articles 577, 584, and 585 of the Civil Code of the People's Republic of China (effective from January 1, 2021); the provisions on the burden of litigation expenses in the Civil Procedure Law of the People's Republic of China (amended and implemented on January 1, 2022). For real estate transactions, please refer to the relevant provisions.Real estate transactions and construction projectsThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Advice
Firstly, attorneys' fees are, in principle, paid by the client themselves, and they can only be claimed if agreed upon in advance. Secondly, the agreement should be clear and specific, avoiding general terms. Thirdly, the actual expenses incurred must be supported by evidence. Fourthly, the reasonableness of the amount will be reviewed. Fifthly, other expenses related to protecting rights can also be claimed. For disputes involving second-hand housing, you can seek legal assistance through the following channels:Real estate transactions and construction projectsConsultation. The rules on statute of limitations and evidence shall be subject to the current laws and regulations and judicial rulings. If you need to learn more about the relevant procedures and practical points, you can refer to our firm's materials.Real estate transactions and construction projectsAndBusiness and contract disputes in enterprises.
VI. Frequently Asked Questions
Q1: If there's no provision in the contract, can I ask the other party to pay for the attorney's fees?
Generally, this is not possible. In principle, the attorney's fees are borne by the client. Only when the contract explicitly stipulates that the defaulting party shall bear the fees, or when there are special provisions in laws or judicial interpretations for specific types of cases, can the party claim that the other party should bear the fees. Therefore, it is particularly important to reach an agreement in advance when signing the contract.
Q2: How can a contract be written to make the other party bear the attorney's fees?
It is recommended to clearly state that: The reasonable expenses such as attorney fees, litigation fees, preservation fees, and appraisal fees incurred by the other party in asserting its rights due to the breach of contract by one party shall be borne by the breaching party. The provisions should be specific to the stages of litigation, arbitration, and enforcement, and explain the settlement method based on supporting documents, so as to reduce the possibility of disputes.
Q3: What materials are required to claim attorney's fees?
Generally, it is necessary to provide a lawyer's retainer contract, invoices issued by the law firm, payment receipts, and materials that reflect the content of the services. The amount should be commensurate with the complexity of the case and the workload. Any part that is significantly higher than the normal standard may not be supported, so it is advisable to choose a formal institution and keep complete receipts.
Q4: Apart from attorney's fees, what other expenses can be claimed?
For the reasonable expenses actually incurred in protecting rights, they can usually be claimed together, such as case acceptance fees, preservation fees and guarantee fees, evaluation or appraisal fees, and announcement fees. These expenses often require proof by invoices. It is recommended to list them item by item in the loss list and attach the relevant invoices, so as to facilitate the court's review and support.
Q5: If the other party breaches the contract, but I have also hired a lawyer, whose fees can I claim back?
It is necessary to distinguish the responsibilities and losses of both parties. The reasonable expenses incurred by the party in breach of contract to safeguard its own rights and interests can be claimed from the defaulting party if there is an agreement or legal basis; the attorney's fees incurred by the defaulting party itself generally cannot be claimed from the party in breach of contract. Therefore, it is necessary to first confirm the attribution of responsibilities, and then make claims in accordance with the contract and the law.
The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as 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 a dispute arises, please consult a practicing lawyer in time.