[Direct answer]In the Beijing area, after the signing of the second-hand housing sales contract, if the seller breaches the contract and fails to perform it, the buyer can usually request continued performance, but whether the request will be supported depends on whether the house meets the conditions for performance. 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 contract, it shall bear such contractual liabilities as continuing to perform the contract, taking remedial measures, or compensating for losses. According to Article 580, if a party fails to perform non-monetary obligations or performs them in a manner inconsistent with the contract, the other party may request performance, except in cases where performance is legally or factually impossible, the subject matter of the obligation is not suitable for enforcement, etc. In second-hand housing transactions, if the house has not been resold, sealed up, or subject to other obstacles, and the buyer has the qualification to purchase the house and the ability to pay, the court will usually support the continued performance of the contract and the handling of the transfer formalities; if the house has been transferred to a bona fide third party or has been sealed up, the buyer can only claim compensation for losses. For similar issues, please refer to the relevant provisions of the Civil Code of the People's Republic of China.Real estate transactions and construction projectsColumn.
I. Problem Background and Typical Scenarios
Such disputes often arise in several situations: First, the seller accepts the deposit or part of the purchase price but later changes his mind and refuses to cooperate with the online signing or transfer of ownership; Second, after the housing prices rise, the seller claims that the contract is invalid or breached; Third, the house is sealed up or mortgaged in another case, resulting in the inability to transfer ownership; Fourth, the seller has already sold the house to a third party and completed the transfer, leaving the original buyer with no recourse but to seek compensation; Fifth, the buyer's own eligibility to purchase or loan problems result in obstacles to performance. When handling such cases in Beijing, the court usually first verifies the ownership status of the house, the situation of the seal-up and mortgage, and the buyer's qualifications, then judges the feasibility of continuing the performance and takes preservation measures when necessary. For cases involving the enforcement and preservation of funds, reference can be made to the relevant provisions of the Civil Procedure Law of the People's Republic of China.Creditor's rights and debts, and enforcement casesColumn.
II. Key points of contention
First, the validity and enforceability of the contract. Whether the house is sealed up, mortgaged, or sold to others will affect the continuation of performance. Second, whether the buyer has the qualification to purchase the house and the ability to pay, which is a prerequisite for the continuation of performance. Third, the form of the seller's breach of contract, whether it is refusal to perform, delay in performance, or fundamental breach of contract. Fourth, if the house has been sold to a bona fide third party, the original buyer can only claim damages. Fifth, the choice between continuation of performance and compensation for losses, or the combination of the two. Sixth, the scope of compensation, including the breach of contract penalty, the loss of the price difference, and the intermediary fees. Seventh, the connection between litigation preservation and enforcement. The specific determination shall be based on the current effective laws, regulations, and judicial rulings. For related contract disputes, please refer to the relevant provisions.Business and contract disputes in enterprisesColumn.
III. Professional analysis by Henglue Lawyers
Based on the practical experience of the lawyers handled by our firm, the core of continuing the performance of second-hand housing cases is to first confirm whether the house can still be transferred. The first step should be to retrieve the real estate registration information and ascertain whether the house is subject to seizure, mortgage, objection registration, or other rights encumbrances. If there is seizure, obstacles need to be removed through methods such as executing objections, lifting the seizure, or making substituted repayments. The second step is to confirm the buyer's eligibility for purchasing the house and their payment capacity. If necessary, the loan gap can be addressed with their own funds or bridge financing solutions. The third step is to assess the seller's willingness to cooperate. If they explicitly refuse, legal action should be taken promptly and preservation measures applied in the litigation to prevent the house from being transferred. In cases where the seller has already transferred the house to a bona fide third party, continuing the performance is no longer possible. Instead, claims for contract rescission, refund of payments, and compensation for losses such as the housing price difference should be pursued. Overall, whether the performance can continue depends on the current status of the house and the buyer's qualifications. The timing of evidence collection and preservation determines the outcome. In such cases, the lawyers handled by our firm pay attention to establishing the basis for performance through ownership inquiries and preservation measures.
IV. Practical suggestions and legal basis
Action suggestions: First, immediately check the ownership of the house and the status of the foreclosure and mortgage after signing the contract. For the relevant process, you can refer to the following link:Special services and other casesFirst, the contract should clearly stipulate the transfer deadline, breach of contract liability, and termination clauses, and specify the right to choose between continuing performance and compensation. Second, if any signs of the seller's breach of contract are detected, a letter should be sent promptly to assert the right to continue performance and preserve evidence. Third, when conditions permit, legal action should be initiated as soon as possible and an application for property preservation should be filed to prevent the house from being resold or transferred. Fourth, if the house can no longer be transferred, the contract should be terminated immediately and compensation for the price difference should be claimed. In terms of legal basis, Articles 577, 580, and 581 of the Civil Code of the People's Republic of China stipulate the obligations of continuing performance, exceptions to the performance of non-pecuniary obligations, and alternative performance; Articles 583 and 584 stipulate the scope of compensation for breach of contract losses, including the benefits that could be obtained after the performance of the contract, but the amount of compensation shall not exceed the losses that the breaching party could have foreseen or should have foreseen at the time of entering into the contract.
5. Henglu Law Firm's Reminder
Risk Alert: First, if the house has been transferred to a bona fide third party or sealed up and cannot be cleared, the buyer can only seek compensation; Second, the buyer's eligibility to purchase the house and his/her ability to pay are the key points reviewed by the court. Requests for continued performance will be difficult to gain support if the buyer's own conditions are insufficient; Third, the timing of preservation is crucial. Delaying may lead to the house being transferred; Fourth, the claims for continued performance and the claims for compensation for losses are on different paths, and the evidence and litigation requests should be precise. For disputes involving administrative registration, reference can be made to the relevant provisions.Land expropriation and demolition, and administrative litigationColumn. It is recommended to entrust a professional lawyer to get involved as soon as possible to fix the ownership and evidence of breach of contract.
VI. Frequently Asked Questions
Q1: If the seller refuses to cooperate with the transfer of ownership, can we require them to continue to fulfill their obligations?
It's possible, but there are conditions. According to Articles 577 and 580 of the Civil Code, if the seller fails to fulfill the obligation of transferring ownership, the buyer may request the seller to continue to perform the obligation, but the house must not have been sealed up, mortgaged, or sold to a bona fide third party, and the buyer must have the qualification to purchase the house and the ability to pay. If the house can still be transferred, the court will usually support the transfer of ownership; if it can no longer be transferred, the buyer can only claim to rescind the contract and claim compensation for losses. It is recommended to first retrieve the real estate registration information to confirm the status of the house, and then decide whether to request the seller to continue to perform the obligation.
Q2: What evidence do I need to prepare to enforce the contract?
The following should be prepared: a second-hand housing sales contract and supplementary agreement, to prove the parties' agreements and obligations regarding the transfer of ownership; payment receipts, to prove that the purchase price has been paid; communication records, such as WeChat messages, text messages, or lawyer's letters urging the transfer of ownership; the results of real estate registration inquiries and foreclosure and mortgage information, to prove the enforceability of the house; and proof of the buyer's eligibility to purchase and ability to pay. These evidences are used to prove the validity of the contract, the seller's breach of contract, and the conditions for continued performance. It is more advantageous to fix the evidence as early as possible.
Q3: How much does it cost to sue for the continuation of contract performance?
The fees include attorney fees and litigation fees. Attorney fees are negotiated based on the amount of the case and its difficulty; litigation fees are charged in stages according to the amount of the litigation request (usually the purchase price or the price difference), and the other party may be required to bear part of the fees after winning the case. If applying for property preservation at the same time, there are also preservation fees and guarantee costs. The specific amounts are evaluated based on the total price of the house, whether preservation is applied for, and the scope of the claim. It is recommended to first assess the feasibility of enforcement, and then determine the budget and plan.
Q4: How long will it take to resolve the disputes over the continued performance of second-hand housing transactions?
If the seller cooperates or the mediation is successful, the transfer of ownership may be completed more quickly. The first-instance ordinary procedure of litigation generally does not exceed six months, but it may take longer if it involves preservation, appraisal, or appeal. If the house is sealed up, it is necessary to first go through the procedures of executing objections or lifting the seal, which will prolong the time accordingly. The key is to inquire about the ownership and apply for preservation as soon as possible to avoid the house being transferred and resulting in the inability to perform the obligation. The execution stage depends on the other party's cooperation and the status of the property.
Q5: Can I still demand to continue to fulfill the contract if my house has been sealed off by the court?
The seized houses are usually not able to be transferred immediately, but can be handled according to different circumstances: if the seizure is caused by the seller's other debts, the contract can be continued after the seizure is lifted by raising an objection to the execution, providing guarantees, or making repayments on behalf of the seller; if the seizure originates from this case and the house has already been disposed of, it is no longer possible to continue the contract, so it should be converted to terminate the contract and claim compensation. For reference onlyBeijing Henglue Law FirmFor similar cases on the official website, choose the most secure path based on your own evidence and entrust a lawyer to get involved as soon as possible.
The above answer is based on the judicial practice in the Beijing area. The adjudicative guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limits. →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 you encounter disputes, please consult a practicing lawyer in time.