[Direct answer]In the Beijing area, if developers' capital chains break down, leading to project suspensions and housing delivery delays, buyers should take prompt action. The main steps are as follows: First, fix evidence and keep the purchase contract, payment receipts, delivery notices, and public information about the project suspension; Second, continuously send written reminders and demand written responses from developers and competent authorities. If necessary, file complaints and reports to relevant departments in accordance with the Judicial Interpretation of the Contract for the Sale of Commercial Housing; Third, assess the conditions for contract termination. According to Article 563 of the Civil Code of the People's Republic of China (effective January 1, 2021), if long-term delays result in the failure to achieve the contract's purpose, buyers may request to terminate the contract; Fourth, handle mortgage loans simultaneously. According to the relevant provisions of the Supreme People's Court's Interpretation on the Application of Law in the Trials of Disputes over Contracts for the Sale of Commercial Housing, if the purchase contract is terminated, the loan contract should also be handled concurrently. It is necessary to determine the path of action as early as possible.

1. Problem background and typical scenarios

The typical situations of unfinished projects include: long-term stagnation in construction progress, months of site shutdown with no signs of resumption, repeated delays in the resumption of construction promised by developers, closure of sales offices or loss of contact with customer service, and substantial delays in delivery time even after resumption of construction for some projects. Buyers' concerns focus on three aspects: whether the paid housing deposits can be refunded, whether the mortgage loans still need to be repaid, and how to avoid further losses. Disputes involving multiple parties usually require organized protection of rights.

II. Key points of contention

First, whether the suspension of work and the delay in delivery have reached the extent that the contractual objectives cannot be achieved. Second, the determination of the time point of contract termination and the method of notification. Third, the scope of refund of the paid amounts and the claim for interest. Fourth, the subject responsible for the bank mortgage loan and the handling of the remaining loan. Fifth, whether the purchaser can require the developer to bear the breach of contract liability. Sixth, the sharing of expenses between the owner and the developer. Seventh, the connection between the declaration of creditor's rights and the bankruptcy procedure. It is particularly crucial to evaluate the actual solvency of the developer.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm believes that litigating against unfinished projects should focus on fundamental breaches of contract, rather than claiming default penalties on a case-by-case basis. Taking a commercial housing pre-sale contract dispute handled by Attorney Liu Donghua of our firm as an example: The buyer purchased a store from the developer and obtained a mortgage loan, but the developer failed to deliver the property on time for years and the project was suspended. Despite repeated promises, the developer still failed to fulfill its obligations. The attorney focused on proving fundamental breaches of contract: First, he argued that the long-term delay and project suspension rendered the contract's purpose impossible to achieve, and therefore supported the termination of the contract according to law; Second, based on the relevant provisions of the Judicial Interpretation of the Contract for the Sale of Commercial Housing, he argued that the termination of the purchase contract should be accompanied by the termination of the loan contract, with the developer assuming responsibility for returning the loan; Third, he calculated the actual losses in detail, including the use of funds and various fees paid, and put forward reasonable claims for breach of contract damages; Fourth, regarding the structural issues of the developer, he argued that the sole shareholder's abuse of the company's independent status should bear joint and several liability. Ultimately, the court fully supported the claims for terminating the contract, returning the purchase price, repaying the principal and interest of the loan, public maintenance funds and stamp duty, and breach of contract damages, with the relevant shareholders bearing joint and several liability. This resulted in the full refund of the purchase price, the transfer of the loan to the developer for repayment, and the recovery of breach of contract losses. 恒略律师认为，烂尾维权应以根本违约为支点，而不是逐户主张逾期违约金。以本所刘东华律师代理的一起商品房预售合同纠纷为例：购房人购买开发商的商铺并办理按揭贷款，开发商逾期多年未交房且项目停工，经多次承诺仍未履约。代理律师围绕根本违约展开论证：第一步主张长期逾期与项目停工已致合同目的无法实现，依法支持解除合同；第二步依据商品房买卖合同司法解释的相关规定，主张解除购房合同的同时应一并解除贷款合同，由开发商承担贷款返还责任；第三步详细计算实际损失，包括资金占用与已付各项费用，并提出合理的违约赔偿诉求；第四步针对开发主体的结构问题，主张其唯一股东滥用公司独立地位应承担连带责任。最终法院全面支持了解除合同、返还购房款、已还贷款本息、公共维修基金与印花税以及违约赔偿的诉求，并由相关股东承担连带责任，实现了购房款全退、贷款转由开发商偿还、违约损失获赔。Business and contract disputes in enterprisesThe column provides a more comprehensive explanation of the argument structure. This case shows that it is very important to ensure the integrity of the design. After the contract is terminated, all claims for various payments need to be listed separately.

IV. Practical suggestions and legal basis

Action suggestions: 1. Check the delivery deadline and breach of contract provisions stipulated in the purchase contract; 2. Continuously send written reminders and demand written responses, retaining proof of delivery; 3. Collect public information and on-site footage regarding project suspensions, sales suspensions, and rights protection activities; 4. Evaluate whether to join forces with other owners to enhance negotiation efficiency; 5. Entrust a lawyer to assess the conditions for contract termination and litigation strategies; 6. Simultaneously handle mortgage repayment and responsibility transfer; 7. Monitor whether the developer has entered bankruptcy proceedings and promptly file creditor's claims. Legal basis: Articles 563, 577, and 585 of the Civil Code of the People's Republic of China (effective January 1, 2021); Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commercial Housing Sales Contracts (amended in 2020) regarding contract termination and loan handling. For details on bank and loan-related issues, please refer to the following link:Business and contract disputes in enterprisesFor matters related to the declaration of creditor's rights, you may refer to the following document for reference:Creditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, whether the delay constitutes a fundamental breach of contract is a crucial judgment point. Secondly, the notice of rescission must be delivered in writing and the relevant evidence must be preserved. Thirdly, the coordinated handling of the loan contract and the purchase contract cannot be ignored. Fourthly, to claim the joint and several liability of shareholders, it is necessary to prove that they have abused their independent status. Fifthly, joint protection of rights can significantly improve negotiation efficiency. Sixthly, attention should be paid to the continuity of the statute of limitations and the record of reminders. Seventhly, no one is allowed to make any commitment regarding the result of returning the house.

VI. Frequently Asked Questions

Q1: The developer has left the project unfinished. Can I ask for a refund for the apartment?

Yes. According to Article 563 of the Civil Code of the People's Republic of China, if the seller delays in performing the obligation or engages in other breaches of contract that result in the failure to achieve the contractual purpose, the parties may rescind the contract. If a stalled project remains idle for a long time and the commitment to resume construction repeatedly fails to materialize, it can generally be determined that the contractual purpose cannot be achieved, and the buyer may request rescission of the contract according to law. In practice, it is necessary to comprehensively evaluate factors such as the duration of the construction stoppage, the possibility of resuming construction, and the developer's ability to perform the obligation. It is recommended to entrust a lawyer to evaluate the situation before deciding on the next step.

Q2: The project has been suspended. Do I still need to continue making mortgage payments?

This involves the issue of the relativity of the loan contract. The loan contract and the purchase contract are two independent contracts. Banks generally require borrowers to repay the loan according to the agreement. However, in the case of the termination of the purchase contract, the remaining principal and interest of the loan should generally be borne by the developer, and the repaid portion can be requested to be returned. According to the relevant provisions of the Judicial Interpretation of the Contract for the Sale of Commercial Housing, the loan contract should be dealt with together with the termination of the purchase contract. In practice, it is recommended to first confirm the facts of the suspension of construction and the records of reminders, and then let lawyers design a solution to avoid the consequences of default caused by stopping the loan on one's own initiative.Creditor's rights and debts, and enforcementThe column provides further explanations on this issue.

Q3: What payments can be claimed upon check-out?

It usually includes the total purchase price and interest paid, the principal and interest of the loan repaid, other fees collected on behalf of the lender, and the penalty for breach of contract or compensation for losses. According to Articles 577 and 585 of the Civil Code, the party in breach of contract may be required to continue to perform the contract, take remedial measures, or compensate for losses. If the agreed penalty for breach of contract is too high, the other party may request an adjustment. When making a claim, the nature of the payments, the amount, and the calculation basis should be listed item by item to facilitate the court's review.Business and contract disputes in enterprisesThe column provides more ideas for discussion.

Q4: Is it necessary to jointly protect rights?

It has practical value. Abandoned projects typically involve a large number of owners. Joint protection of rights can improve the efficiency of communication with developers and competent authorities, and also facilitate the collection of unified evidence and litigation strategies, reducing duplicate investments. In practice, representatives can be elected to communicate with developers on a unified basis, while paying attention to clarifying the representative mechanism and authorization scope when entrusting lawyers. It should be noted that joint protection of rights does not replace individual claims. Each buyer's contract terms and payment situations may vary, so it is still necessary to check them individually.Special services and other casesThe column provides a more detailed explanation of this organizational method.

Q5: How much does it cost to hire a lawyer to handle litigation against a developer for unfinished projects?

The fees are determined through consultation between the law firm and the client, and depend on the value of the property, the number of parties involved, the possibility of joint litigation, whether an appraisal or evaluation is needed, whether mortgage or bankruptcy proceedings are involved, and whether the case has entered the enforcement phase. The cost of providing only advice and evaluating options is relatively manageable; however, if joint litigation, preservation of evidence, and enforcement are required, the investment will increase significantly. It is recommended to first organize the evidence and evaluate the legal strategy, then determine the scope of services and the phasing of the case, and finally sign a written contract of engagement.

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 Law Firm about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit.Legal services for real estate transactions·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. In case of disputes, please consult a practicing lawyer in time.