[Direct answer]In the Beijing area, after developers' capital chains break down, owners' rights protection paths depend on two judgments. First, whether it is still feasible to continue performance: it is necessary to check whether the project has resumed work, whether there is new capital injection, and the status of the construction license and the presale fund supervision account. If the project is effectively halted and there are no signs of resumption, the expectation of continuing delivery is low. Second, whether there are conditions for rescinding the contract: it is necessary to verify whether the rescission conditions stipulated in the contract have been met, such as the delivery being delayed for the agreed number of days, or the project being halted due to the failure to achieve the contractual purpose. After determining the direction, owners should simultaneously do three things: first, comprehensively fix evidence, including the purchase contract, payment receipts and loan materials, public information and communication records of the developer, and image materials of the project's suspension and construction progress; second, assess the developer's asset status, including the construction projects, the scale of sold but undelivered properties, and other debts, and apply for property preservation if necessary; third, choose appropriate subjects and procedures, including reporting the situation to the housing and urban-rural development department and the market supervision department, asserting rights through litigation, and jointly protecting rights with other owners. Article 563 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates the statutory circumstances for rescission, and Article 577 stipulates the liability for breach of contract.Real estate transactions and construction projectsThe services in this column can assist in evaluating the path to protecting one's rights.

I. Problem Background and Typical Scenarios

Common dilemmas include: the project being suspended for several months with no notice of resumption; developers urging the signing of an agreement for delayed delivery; misappropriation of funds in the pre-sale fund supervision account; construction companies' disputes with developers leading to work stoppages; borrowers facing continuous repayment pressure due to unfinished housing; and large-scale defaults in other projects.Special services and other casesThe program descriptions in the column can be used for reference. When faced with a stalled project, investors are most concerned about whether they can get the house, so it's necessary to evaluate the two expectations of house delivery and refund separately.

II. Key points of contention

Focus One: Continuing to fulfill or exercising the option to terminate the contract. Focus Two: Calculating and determining the extent of the delay. Focus Three: Handling the return of the purchase price and loan. Focus Four: Distinguishing between the developer's responsibilities and the shareholders' liabilities. Focus Five: The timing of asset preservation and guarantees. Focus Six: Organizing joint protection of rights.Business and contract disputes in enterprisesThe responsibility analysis in the column can be used for reference.

III. Professional analysis by Henglue Law Firm

Take the dispute over a pre-sale contract for commercial housing represented by Attorney Liu Donghua of our firm as an example: The buyer signed a sales contract for the store and paid the down payment, then applied for a mortgage loan, but the developer failed to deliver the house on time for many years and the project was suspended. The lawyer's representation strategy was to claim the termination of the contract based on the fundamental breach of contract, and at the same time, request the simultaneous handling of the loan contract; in terms of the subject of liability, considering that the developer was the sole shareholder, the lawyer claimed that he should bear joint and several liability for the company's debts, and also raised claims against the loan bank's liability. In the end, the court fully supported the claim and ruled to terminate the pre-sale contract and the loan contract, and to return the down payment, the principal and interest of the loan already paid, and related fees. This approach is of universal significance to owners of off-plan properties: when facing the developer's broken capital chain, it is necessary to sort out the contractual relationship, loan relationship, and subject of liability all at once, rather than making claims in stages, so as to improve efficiency and avoid missing any rights and interests.\nFinancial capital and cross-border transactions involving foreign entitiesThe asset verification approach in this column can be used for further reference.

IV. Practical Suggestions and Legal Basis

Action suggestions: 1. Thoroughly document the evidence of home purchases and payments. 2. Verify the project's resumption of construction and the supervision of pre-sale funds. 3. Calculate the number of days of delay and compare it with the conditions for termination. 4. Assess the developer's asset status and consider property preservation. 5. Identify the responsible parties, including shareholders and affiliated companies. 6. Coordinate with other homeowners to take unified action. Legal basis: - Articles 563, 577, and 585 of the Civil Code of the People's Republic of China (effective January 1, 2021); - Judicial Interpretation on Contracts for the Sale of Commercial Housing; - Provisions on property preservation in the Civil Procedure Law of the People's Republic of China (amended and effective January 1, 2022); - Specific applications shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

First, don't sign the extension of delivery or amendment agreements proposed by developers easily, as you may lose your existing rights. Second, the timing of property preservation is crucial. The earlier you apply, the more beneficial it will be. Third, the responsible parties should conduct a comprehensive verification and not just focus on the project company. Fourth, don't accept promises to waive rights without reservation. Fifth, joint protection of rights can help form a scale effect, but it's necessary to maintain a unified stance and standardize authorizations. Sixth, pay attention to the policies regarding the arrangement of on-time delivery of buildings and fund supervision requirements, and strike a reasonable balance when asserting rights.Special services and other casesThe column can also provide supporting explanations from rights protection organizations.

VI. Frequently Asked Questions

Q1: The developer has gone bankrupt. Should I continue to wait for the handover or demand a refund for the purchase price?

It is necessary to make a judgment based on facts. The key to the judgment is whether there is still a realistic possibility of continuing the performance: whether the project has resumed work, whether there are clear funding and construction arrangements, and whether the pre-sale fund supervision account is complete. If the project is actually stopped and there are no signs of resuming work, the expectation of continuing to wait is low, and consideration should be given to claiming the rescission of the contract and the return of the housing payment. At the same time, it is necessary to check whether the rescission conditions stipulated in the contract have been met, and whether the number of days of delay has reached the agreed or statutory level of fundamental breach of contract. It is recommended to first entrust a professional lawyer to verify the actual situation of the project and the contract terms, and then make a decision.

Q2: I've already signed the agreement to postpone the handover of the house. Can I still change my mind?

It is necessary to evaluate the content of the agreement and the background at the time of signing. If the agreement is signed by the developer in the form of standard terms, and significantly increases the buyer's obligations or reduces its own responsibilities, the buyer can claim that the clause is unreasonable according to law; but if the delivery time is adjusted by mutual agreement, it will usually be recognized as a valid change, and the buyer needs to claim rights according to the adjusted deadline. Therefore, before signing, the buyer should focus on checking three points: whether the new delivery time is still reasonable, whether default liability has been set, and whether the right to terminate the contract has been clearly reserved. There is usually limited room for regrets after signing.

Q3: Is it really effective to fight for rights together?

It has practical effects, mainly manifested in three aspects: Firstly, it is easier to attract attention and prompt developers and competent authorities to respond through collective appeals; Secondly, it can elect representatives to communicate in a unified manner, reducing communication costs; Thirdly, it can form demonstration cases. By initiating litigation on some cases first to establish judgment standards, it can provide reference for other cases. It is necessary to pay attention to the organizational costs of joint protection of rights. It is recommended to unify the appeal guidelines and standardize the authorization documents as soon as possible to avoid weakening the effect due to internal inconsistencies. During the process of protecting rights, attention should be paid to legality and compliance, and avoiding taking excessive actions.

Q4: If the money can't be recovered, can the shareholders be held responsible for it?

This requires a detailed analysis. If the company has only one shareholder and the shareholder's assets are intermingled with the company's assets or there is identity confusion between the shareholder and the company, it may be possible to claim that the shareholder should bear responsibility for the company's debts. In addition, if it can be proven that the shareholder has withdrawn funds from the company, abused the independent legal personality of the company and limited liability to evade debts, corresponding responsibilities can also be claimed. However, before making such claims, it is necessary to complete evidence investigation: verifying the shareholder's investment situation, the independence of the company and its books, and whether there are related-party transactions and asset transfers. This requires sufficient evidence to support it. It is recommended that a professional lawyer evaluate the situation before deciding whether to initiate relevant procedures.

Q5: Do I still need to continue repaying the mortgage?

It is recommended to continue making repayments on schedule and not to suspend the loan voluntarily. The loan contract is an independent contract signed with the bank. Even if the purchase contract with the developer is terminated, the validity of the loan contract will not necessarily be terminated. Suspending the loan voluntarily may be regarded by the bank as a breach of contract and affect the credit record, and may also lead to penalty interest and litigation risks. The correct approach is: to claim the termination of both the purchase contract and the loan contract in the litigation, and let the court handle it according to law. At the same time, notify the loan bank of the relevant situation; if the judgment supports the termination, the developer will usually return the purchase price and handle the loan settlement procedures with the bank. Communicating with the bank in advance about the settlement path can help avoid a funding gap.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for 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 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.