[Direct answer]In the Beijing area, the handling of breaches of contract in second-hand housing transactions should first determine the form of the breach and the remedial path. According to Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), 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 563 stipulates the right to rescind the contract when the contractual purpose cannot be achieved. If claiming damages, according to Article 585 of the same law, if the agreed damages are lower than the losses, the party may request an increase; if they are excessively higher than the losses, the party may request an appropriate adjustment.Business and contract disputes in enterprisesIn this type of service, the request design and the organization of evidence determine the final outcome.

I. Problem background and typical scenarios

Common forms of breach of contract include: the seller suddenly raising the price or refusing to transfer ownership; the house being mortgaged, sealed up, or subject to disputes over shared ownership, making it impossible to fulfill the contract; the buyer's loan not being approved and requesting to terminate the contract; and the two parties only signing an intention or confirmation document without entering into a formal contract. The difficulty of the dispute lies in the fact that once the house is disposed of again, the practical possibility of continuing to perform the contract may have been lost.Real estate transactions and construction projectsIn these services, the verification of ownership status is always a crucial preliminary step.

II. Key points of contention

Focus One: The choice of the way to assume breach of contract liability. Focus Two: The impact of the ownership status of the house on the continuation of performance. Focus Three: The distinction between a preliminary contract and a main contract. Focus Four: The agreed standard and adjustment of the breach of contract penalty. Focus Five: The attribution of responsibility for performance obstacles caused by the other party. Focus Six: The scope and calculation of damages. Focus Seven: The necessity of property preservation and preventing the house from being disposed of again.Special services and other casesThe column provides a more detailed explanation of this issue.

III. Professional analysis by Henglue Lawyers

恒略律师认为，违约救济的选择需围绕合同条款与实际履行状态展开。以本所朱桂颖律师代理的一起预约合同纠纷为例：出租方与承租方签订租赁确认文件，约定承租方承租特定房屋、按月租金与租期执行，出租方按承租方要求定制装修并约定检测合格后起算租期，同时明确若因承租方原因不承租需赔偿装修费用。装修完成并检测合格后，承租方以各种理由拖延签订正式合同并最终明确不再承租。代理律师的策略是先确认预约合同的成立：虽确认文件未加盖出租方公章，但出租方已实际履行装修义务，承租方多次参与方案沟通且未提异议，足以认定双方就租赁主体、标的、租金与租期达成一致；再指出承租方以资金托管、产权证明等理由反复拖延却无有效证据，且在沟通中明确表示对房屋态度未变仍拒绝签约，显属恶意违约；最后依确认文件的约定主张装修费赔偿，并说明该费用与违约行为具有直接因果关系。法院认定预约合同成立，判令赔偿装修损失。Business and contract disputes in enterprisesThe column provides a more comprehensive explanation of the argument's structure.Property transactions and construction projectsThe column provides more explanations on the distinction between the reservation contract and the present contract. This case is handled by Beijing Henglu Law Firm.Xiong BinrongThe attorney (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: 1. Verify the ownership of the property, its mortgage status, and any seizure orders. 2. Review the provisions of the contract and supplementary agreements, and clarify the liability clauses for breach of contract. 3. Collect evidence of the other party's breach of contract, including records of reminders and explicit statements. 4. Assess the feasibility of continuing performance and, if necessary, apply for property preservation. 5. Calculate the specific amount of the breach of contract penalty and damages, and provide the basis for these calculations. 6. Evaluate the potential for mediation and set appropriate breach of contract clauses. 7. Pay attention to the statute of limitations and jurisdiction provisions. Legal basis: Articles 495, 500, 577, and 563 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 Urban Housing Lease Contract Disputes. For details on property ownership registration, please refer to the relevant documents.Property sales and construction projectsFor cases involving property preservation, you can refer to special services and other cases. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

First, determine the form of the breach of contract before choosing a remedy. Second, the request for continued performance must be based on the premise that the house has not been disposed of again. Third, the preliminary contract is also legally binding. Fourth, if the breach of contract penalty is too high, the party may request an adjustment, but must provide evidence of the losses. Fifth, evidence of malicious delay is more important than verbal claims. Sixth, pay attention to the guarantee costs of preservation and the liability for erroneous preservation. Seventh, pay attention to the statute of limitations and jurisdiction agreements.

VI. Frequently Asked Questions

Q1: If the seller of a second-hand house breaches the contract and refuses to sell the house, can the buyer request the seller to continue to perform the contract?

This can be claimed. According to Article 577 of the Civil Code of the People's Republic of China, failure to perform the contractual obligations shall bear such responsibilities as continuing to perform, taking remedial measures, or compensating for losses. However, the feasibility of continuing to perform depends on the ownership status of the house: if the house has been mortgaged, sealed up, or transferred to a third party, it may be difficult to enforce even if the plaintiff wins the lawsuit. Therefore, before suing, the plaintiff should first complete the ownership inquiry and, if necessary, apply for property preservation simultaneously; if it is indeed impossible to perform the obligations, the plaintiff should then shift to claiming breach of contract liability and compensation for losses.

Q2: How is the agreed standard for the penalty clause determined?

Generally, the calculation method or the proportion agreed upon in the contract shall prevail. In practice, it is common to calculate on a daily basis or according to a certain proportion of the total price of the house. Two points need to be noted: First, the agreed standards must not violate the mandatory provisions of the law; Second, according to Article 85 of the Civil Code, if the agreed penalty is lower than the losses caused, the party may request an increase; if it is excessively higher than the losses caused, the party may request an appropriate adjustment. Therefore, when claiming compensation, the basis of the losses should be explained, such as the loss of rent, the loss of funds occupied, and the correlation with the expenses already incurred. The Enterprise Commercial and Contract Disputes column provides more analysis on this issue.

Q3: Can I claim breach of contract liability just by signing a letter of intent or a confirmation letter?

It depends on the specific content. If the parties have reached an agreement on the core elements such as the subject of the contract, the object of the contract, the price, and the performance method, even if no formal contract has been signed, it may be regarded as a preliminary contract and become binding. If the preliminary contract is violated, the party in breach shall bear the liability for breach of contract and compensate for the losses caused by the breach. The key judgment is whether the parties have reached an agreement on the core elements and whether there is actual performance. The Real Estate Sales and Construction Projects column provides a more detailed explanation of this issue.

Q4: If the landlord demands a price increase, what can I claim?

According to the contract, the party may claim that the other party has breached the contract and demand that it continue to perform the contract, or claim for breach of contract penalties and compensation for losses. If the price increase constitutes a unilateral change to the content of the contract, and the other party refuses to perform according to the original agreement, it constitutes a breach of contract. In practice, it is recommended to first require the other party to perform according to the original agreement in writing and specify the performance period, while conducting ownership verification and evidence preservation to avoid the house being re-disposed of during the negotiation period. The Special Services and Other Cases section provides further explanations on this issue.

Q5: How much does it cost to hire a lawyer to handle a breach of contract for a second-hand house?

The fees are determined through consultation between the law firm and the client, and typically depend on the value of the property, the amount of the dispute, whether property preservation is required, whether third-party claims and appraisals are involved, and whether it is necessary to proceed to the enforcement stage. The cost of simply reviewing the contract and providing advice is relatively manageable; however, if it is necessary to design the entire process of property preservation, litigation, and enforcement, the investment will increase significantly. It is recommended to first complete the ownership inquiry and evidence sorting, and then determine the scope of services and the schedule of stages.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, in order to avoid missing the statutory time limit.Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglu 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. In case of disputes, please consult a practicing lawyer in time.