[Direct answer]In the Beijing area, whether developers' false advertising supports the right to withdraw from the contract requires meeting several conditions. Firstly, the advertising content must be specific and have the nature of an offer: only advertising that can be implemented in terms of housing location, area, supporting facilities, decoration standards, and delivery conditions can be regarded as contractual content or an offer; pure conceptual and non-quantifiable advertising is usually difficult to support the right to withdraw from the contract alone. Secondly, the advertising must be false: there must be evidence to prove that the advertising content does not match the actual situation, such as inconsistencies between the planning permit and the advertised educational and commercial supporting facilities, or obvious discrepancies between the model and the actual greening and floor plans. Thirdly, the advertising must have influenced the purchaser's decision to purchase: if the purchaser knew or failed to verify the information at the time of purchase, the impact of the advertising may be weakened. Fourthly, the severity of the consequences: if the false advertising results in significant damage to the value or usability of the house, it may constitute a fundamental breach of contract, thereby supporting the termination of the contract. According to Articles 148 and 157 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a civil legal act is performed by fraudulent means and the other party acts against his true intention, the party deceived by the fraud has the right to request the people's court or arbitration institution to revoke it; after the contract is confirmed to be invalid, revoked, or determined not to take effect, the property obtained by the perpetrator through such acts shall be returned. It should be noted that the threshold for withdrawing from the contract is relatively high in practice, and most cases are resolved through claims for price reductions, compensation for losses, or demands for the performance of supporting commitments.Real estate transactions and construction projectsThe column provides specific explanations on the promotion of commercial housing and the path to protecting consumers' rights.
I. Problem Background and Typical Scenarios
Buyers who consult such issues are often in a state where they find obvious differences between the promotional materials and the actual situation after receiving the house. There are three common scenarios: first, the promised supporting facilities fail to materialize, such as the schools and commercial centers advertised being delayed in construction or having their plans changed; second, the supporting facilities like greening, clubhouses, and parking spaces are reduced in scale; third, there are differences between the house layouts, orientations, or delivery standards and those of the model units. Common concerns include: whether the buyer can withdraw from the contract if the promotional materials are not fulfilled, how much compensation can be claimed, and how to collect evidence. In practice, the most crucial thing is evidence: the promotional brochures, sandbox photos and on-site videos at the time of purchase, promotional boards and contract appendices, planning permission documents and actual construction conditions, as well as records of communication with sales staff, together form the basis for proving the differences between the promotional content and the actual situation. It should be noted that the earlier the evidence is fixed, the better, as the removal of model units and the departure of sales staff will make it difficult to collect evidence later. Another common misunderstanding is focusing only on withdrawal from the contract, while ignoring more achievable requests such as price reduction and the fulfillment of supporting facilities. For practical issues in planning and supporting facilities verification, you can refer to the following sources for reference:Special services and other casesColumn.
II. Key points of dispute
First, whether the promotional content constitutes the contractual content or an offer. Second, the standard of proof for demonstrating that the promotional content does not match the actual situation. Third, the determination of the impact on the purchase decision. Fourth, whether it constitutes fraud and the limitations on the exercise of the right of rescission. Fifth, whether it constitutes a fundamental breach of contract and thus supports the termination of the contract. Sixth, the performance obligations and alternative performance when the supporting facilities are not completed. Seventh, the scope and calculation method of loss compensation. Eighth, the choice of requests for returning the house, reducing the price, and compensation. In addition, attention should also be paid to the burden of proof for planning changes, the specific degree of supporting facility commitments, the probative force of sales personnel's statements, whether the contract explicitly stipulates the supporting facilities, and whether the promotional materials are included in the contract annexes. The above specific rules shall be subject to the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Law Firm
From the perspective of protecting rights in commercial housing, the handling of such cases depends on three preparations. Firstly, the fixation of promotional content: brochures, photos of sandboxes and display boards, promotional videos and on-site images at the time of purchase, written or recorded explanations from sales staff, and whether relevant commitments are stated in the contract and its annexes, all need to be organized and fixed before litigation. Among them, the provisions of the contract and its annexes carry the greatest evidentiary value, while promotional materials need to be compared with the planning permits and actual construction conditions. Secondly, the proof of discrepancies: obtaining planning permits, records of completion and acceptance, and municipal supporting approval documents, and comparing them with the promotional content item by item to form a list of discrepancies; for supporting commitments, it is also necessary to verify the construction progress and planning changes. Thirdly, the design of requests: considering the high threshold for returning the house, in practice, litigants usually advocate a tiered approach, i.e., first requiring the developer to fulfill the supporting commitments or supplement the standards, then claiming a price reduction and compensation for losses, and finally considering contract termination. When handling housing sales cases, this firm usually evaluates the completeness of promotional evidence at the acceptance stage and determines the level of requests accordingly; at the same time, attention is paid to the provisions of Article 157 of the Civil Code of the People's Republic of China on the return of property, assessing the financial arrangements and loan processing after contract termination to avoid requests being unable to be implemented.
IV. Practical suggestions and legal basis
Action recommendations: 1. Immediately preserve the promotional materials and images from the time of purchase; 2. Check whether the contract and its annexes clearly state the relevant commitments; 3. Apply for disclosure of planning permits and supporting construction information; 4. Prepare a list of differences between the promotional content and the actual situation; 5. Evaluate the hierarchy of requests for termination of contracts, price reductions, and compensation; 6. Verify the loan processing plan; 7. Pay attention to the limitations of the right of withdrawal and the statute of limitations. Legal basis: Articles 148, 157, and 577 of the Civil Code of the People's Republic of China (all effective from January 1, 2021); The provisions on sales promotion in the "Regulations on the Sale of Commercial Housing" (Ministry of Construction Decree No. 88, promulgated and implemented on June 30, 2000).
5. Henglu Law Firm's Advice
First, the evidence for publicity should be fixed as early as possible, as it is difficult to obtain evidence after the model room is demolished. Second, the contractual provisions take precedence over publicity. Third, the planning and supporting information can be obtained through public channels. Fourth, the threshold for returning the house is high, and a tiered request system should be designed. Fifth, attention should be paid to the exercise period of the right of rescission. Sixth, attention should be paid to the statute of limitations. Seventh, if a loan is involved, the return of the house should be handled simultaneously. Eighth, keep all communication records with sales staff, and pay attention to preserving the original carriers and time information, rather than just keeping a single screenshot. For methods of public announcement inquiry and information disclosure, please refer to the relevant guidelines.Land expropriation and demolition, and administrative litigationColumn; for the method of reviewing contract terms, you can refer to it for referenceBusiness and contract disputes in enterprisesColumn.
VI. Frequently Asked Questions
Q1: If the developer fails to deliver what they advertised, can I request to cancel the purchase and get a refund?
You can make a claim, but whether it can be supported depends on the specific extent of the promotional content, the degree of falsity, and its impact on the purchase decision. Purely conceptual promotions are difficult to support a claim for a refund, while specific promises regarding supporting facilities, greening, and decoration standards that are proven to be false and seriously affect the use function of the house are more likely to be deemed as fundamental breaches of contract. In practice, the more common approach is to require the performance of supporting facilities, reduce the price, or compensate for losses.
Q2: I still have the promotional materials in my hands. How should I use them?
It is recommended to organize and fix the materials as soon as possible: keep the brochures, display boards and photos of the sandbox, promotional videos and on-site images, keep the communication records with the sales staff, and mark the specific descriptions related to the location of the house, supporting facilities and standards. These materials need to be compared with the planning permits and the actual construction situation to form a list of differences; general promotional content has weaker evidentiary value.
Q3: If the supporting facilities haven't been built yet, can I request compensation?
Yes. If the supporting facilities are not built as promised, it usually constitutes a breach of contract, and the developer can be required to fulfill the commitment, take alternative measures, or compensate for the corresponding losses. In practice, it is necessary to first verify whether there have been changes in the construction progress and planning of the supporting facilities, and whether the contract makes clear provisions regarding the supporting facilities. If the completion time and responsibility allocation of the supporting facilities have been clearly stipulated in the contract, the basis for protecting one's rights will be more solid.
Q4: Is it considered fraud if the model room and the promotional materials don't match each other?
Whether it constitutes fraud needs to be judged comprehensively: whether the advertisement is specific and clear, whether it has a substantial impact on the decision to purchase a house, whether the purchaser has been informed of the differences, and whether the purchaser has verified the information by himself or herself. In practice, if the content of the advertisement is obviously inconsistent with the actual situation and the developer knows this but still advertises it, there is a high probability that it will be regarded as fraud; however, claiming fraud requires higher standards of proof and needs to be supported by sufficient evidence.
Q5: Can I only choose one between check-out and compensation?
Generally, it is necessary to clearly state the legal grounds for the claim. If the party requests the rescission of the contract on the grounds of fraud or fundamental breach of contract, it cannot simultaneously claim damages for breach of contract based on the same facts; if the party chooses to continue performance or has already completed the delivery, it can claim a reduction in price and damages. It is recommended that lawyers design the claims based on the evidence situation to avoid contradictions between the claims and weaken the overall effect.
The above Q&A is mainly based on judicial practices in Beijing. There may be differences in the adjudicative opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits. →Legal services for real estate transactions·Beijing Henglue 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.