[Direct answer]In the Beijing area, if a seller accepts the down payment but breaches the contract and refuses to sell the house, the buyer can usually claim compensation for the loss of the price difference. According to Articles 577 and 584 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 contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses; the amount of compensation for losses shall include the benefits that could have been obtained after the performance of the contract, but shall not exceed the losses that the breaching party could have foreseen or should have foreseen at the time of entering into the contract. In the context of rising housing prices, the difference between the contractually agreed price and the market price at the time of breach of contract can be claimed as the loss of the expected benefits. It is recommended to understand the legal procedures and refer to relevant provisions for further guidance.Real estate transactions and construction projectsColumn.

1. Problem background and typical scenarios

Such disputes often occur in several situations: First, after the house price rises, the seller changes his mind and refuses to sign the online contract or transfer the ownership for various reasons; Second, after signing the contract, the seller sells the house to others at a higher price, constituting a case of selling the same house to two different buyers; Third, the seller breaches the contract on the grounds that his spouse does not agree or the house is sealed up; Fourth, the buyer has paid the deposit or down payment, but the seller disappears after receiving the money; Fifth, the two parties disagree on the calculation standard of the price difference, and the seller claims that he should not compensate for the market price difference. When handling such cases in Beijing, the court usually first confirms the validity of the contract and the buyer's performance of the contract, and then calculates the difference between the market value of the house at the time of breach of contract and the original contract price. The relevant process can be referred to for reference.Real estate transactions and construction projectsColumn.

II. Key points of dispute

First, the validity and enforceability of the contract. Whether the house has been sold to others or sealed up, does it affect the continuation of the performance or can only claim compensation? Second, whether the buyer has the qualification to purchase the house and the ability to pay, which is related to the request for continuation of performance. Third, the determination of the loss of the price difference, calculated by the difference between the market price of similar houses at the time of breach of contract or litigation and the original contract price. Fourth, the foreseeable rules. The seller should foresee the risk of housing price fluctuations when entering into the contract. Fifth, the buyer's obligation to mitigate losses. The buyer should take measures such as alternative house purchase in time. Sixth, the relationship between the deposit, the breach of contract penalty and the price difference, and the choice of one or the other. The specific determination shall be subject to the current effective laws and regulations and judicial rulings. Relevant contract disputes can be referred to for reference.Business and contract disputes in enterprisesColumn.

III. Professional analysis by Henglue Lawyers

From the practical experience of lawyers handled by our firm, the key to claiming the price difference in a breach of contract case involving second-hand housing is to substantiate the price difference. Lawyers usually first retrieve real estate registration information to confirm whether the house has been sold to others or sealed up, and then fix the sales contract, payment receipts, and communication records to prove that the buyer has fulfilled his obligations while the seller has breached the contract unilaterally. For the calculation of the price difference, it is generally claimed that the difference between the market value of similar houses at the time of the breach of contract or the time of suing and the original contract price shall prevail, and the transaction prices in the same community, appraisal reports, or listing prices shall be used as supporting evidence. It should be noted that the buyer has an obligation to mitigate losses and should purchase another house or assert rights within a reasonable period of time. Otherwise, the expanded losses may not be supported. The lawyers handled by our firm also emphasize that clearly writing the breach of contract clauses, the transfer deadline, and the right to rescind the contract in the contract is the most powerful guarantee for claiming the price difference afterwards.

IV. Practical suggestions and legal basis

Action suggestions: First, immediately check the ownership of the house and the status of the foreclosure and mortgage. For the relevant process, you can refer to the following link:Special services and other cases1. The first step is to establish a filing system for all relevant documents related to the transaction, including but not limited to the purchase contract, the deposit agreement, payment receipts, and records of the reminder to transfer ownership. 2. The second step is to preserve the sales contract, the deposit agreement, payment receipts, and records of the reminder to transfer ownership. 3. The third step is to promptly fix evidence of the housing market value at the time of breach of contract, such as the transaction price in the same community, appraisal opinions, and listing information. 4. The fourth step is to assess whether to demand continued performance of the contract or to terminate the contract and claim the price difference. 5. If necessary, initiate legal proceedings and apply for property preservation to prevent the house from being transferred. In terms of legal basis, Articles 577 and 584 of the Civil Code of the People's Republic of China stipulate the liability for breach of contract and compensation for the loss of expected benefits; relevant judicial interpretations also provide judicial guidelines for the loss of price difference in housing sales contracts.

5. Henglue Law Firm's Advice

Risk Warning: Firstly, the claim for the price difference is based on the seller's breach of contract and the buyer's performance of the contract. If the buyer breaches the contract, it will be difficult to obtain support; Secondly, the calculation of the price difference requires evidence of market value, and unsubstantiated claims will not be accepted; Thirdly, the buyer has an obligation to mitigate losses. Delaying purchasing elsewhere may result in increased losses that the buyer must bear; Fourthly, the path of continuing to perform the contract is different from that of claiming the price difference, and the litigation request should be precise. For matters involving registration and preservation, please refer to the relevant provisions.Real estate transactions and construction projectsColumn; for disputes involving contracts and breach of contract, you can refer to it for reference.Business and contract disputes in enterprisesColumn. It is recommended to entrust a professional lawyer as soon as possible to fix the ownership and evidence of breach of contract.

VI. Frequently Asked Questions

Q1: If the seller breaches the contract and refuses to sell the house, can I claim compensation for the price difference?

Yes. According to Articles 577 and 584 of the Civil Code, if the seller fails to fulfill his obligation to sell the house, the buyer may claim compensation for losses, including the benefits that could have been obtained after the contract was performed. When the house price rises, the difference between the original contract price and the market price at the time of breach of contract shall be claimed as the loss of benefits that could have been obtained, but the amount shall not exceed the losses foreseeable by the seller at the time of contracting. The key points are to prove that the seller breached the contract, that the buyer has performed his obligation, and that the price difference objectively exists.

Q2: What evidence do I need to prepare to claim the price difference?

The following items should be prepared: the house sale and purchase contract and the deposit agreement, to prove the agreed price and the obligation to transfer ownership; payment receipts, invoices, and bank transaction records; communication records urging the transfer of ownership and the seller's breach of contract; a search for the ownership of the house, to verify that it has not been sold to others or seized; evidence of the market value of similar houses at the time of breach of contract, such as the transaction price in the same residential area, appraisal reports, and listing information; and proof of the buyer's eligibility to purchase and payment capacity. These items are used to prove the breach of contract and the price difference, which are the core of the claim. The earlier the evidence is fixed, the more advantageous it will be.

Q3: How much does it cost to claim the price difference?

The fees include attorney fees and litigation fees. Attorney fees are negotiated based on the value of the case and its complexity; litigation fees are charged in stages according to the amount of the litigation request (the price difference or the total purchase price of the house), and the losing party may be required to bear some of the fees after the litigation is successful; there are additional preservation fees for applying for preservation. The specific amounts are determined based on the total price of the house, the size of the price difference, and whether an appraisal is required. It is recommended to calculate the costs first before making a decision.

Q4: How long does it usually take to resolve disputes over breach of contract and price differences?

If the seller cooperates or the mediation is successful, the case may be resolved relatively quickly. The first-instance litigation in ordinary procedures generally does not exceed six months, but it will take longer if it involves assessing the price difference and appealing. If the house is sold to someone else or sealed up, it is necessary to first file a petition for preservation of property or raise objections to the execution, which will prolong the time accordingly. The key is to inquire about the ownership and apply for preservation of property as soon as possible to prevent the house from being transferred and resulting in the inability to perform the contract.

Q5: How can I claim compensation if the seller refuses to sell the house?

The first step is to immediately check the ownership of the house and its seizure status. The second step is to preserve the contract, payment, and evidence of the reminder. The third step is to fix the evidence of the market value at the time of breach of contract. The fourth step is to evaluate whether to continue to perform the contract or to claim the price difference upon terminating the contract. The fifth step is to sue and apply for preservation of evidence if necessary. For reference, please refer to the following link:Beijing Henglu Law FirmAn explanation of the experience of protecting one's rights for similar second-hand houses on the official website.

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 Henglue Lawyers 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 materials, 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. If a dispute arises, please consult a practicing lawyer in time.