[Direct answer]In the Beijing area, if developers delay the delivery of housing, the losses that buyers can claim mainly include: first, the penalty for late delivery of housing, calculated according to the standard stipulated in the contract (such as one ten-thousandth of the total price per day); second, the interest loss on the paid housing price; third, the reasonable expenses actually incurred due to late delivery of housing, such as renting a house or moving; fourth, the return of the housing price and the compensation for breach of contract after the contract is rescinded when the conditions for rescinding the contract in accordance with the agreement or the law are met. According to Articles 577 and 584 of the Civil Code of the People's Republic of China (effective January 1, 2021), the breaching party shall compensate the performing party for the losses suffered thereby. Buyers should calculate the number of days of delay and the amount of money paid, and claim after fixing the evidence. Similar situations can be referred to for reference.Real estate transactions and construction projectsColumn.

1. Problem background and typical scenarios

These types of disputes often arise in several situations: first, the developer delays the delivery of the house after the agreed date in the contract, and the buyer claims breach of contract damages; second, during the delay period, the buyer is forced to rent a house to live in and demands compensation for the rental price difference; third, the developer uses the pandemic, government actions, and other defenses to exempt or reduce liability; fourth, the buyer simultaneously claims breach of contract damages and the return of the purchase price upon rescission of the contract; fifth, if the project is suspended or left unfinished, the buyer claims rescission of the contract and compensation for all losses. When handling such cases in Beijing, the court usually first reviews the breach of contract penalties stipulated in the contract and the number of days of delay, then verifies the actual losses such as payments made and rental costs, and finally examines the evidence for defenses of exemption from liability. For cases involving the enforcement and preservation of funds, reference can be made to the relevant provisions.Creditor's rights and debts, and enforcement casesColumn.

II. Key points of contention

First, regarding the application of the standard for the penalty clause, is it based on the contractual provisions or the actual losses? Second, can the interest on the paid housing price and the loss of rent be claimed together? Third, whether the developer's defenses of exemption or reduction of liability, such as force majeure and government actions, are valid. Fourth, adjusting the penalty clause that is either too low or too high. Fifth, the scope of compensation for losses after the contract is terminated. Sixth, the allocation of the burden of proof, with the buyer proving the delay and losses, and the developer proving the grounds for exemption from liability. Seventh, whether multiple losses can coexist. The specific determination shall be based on the current effective laws and 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 key to claiming compensation for delayed delivery of housing is to lock in the contractually agreed penalty standard, the number of days of delay, and the base amount of payments, and to fix the actual losses with evidence. When handling similar cases, our lawyers often first check the provisions of the pre-sale contract and supplementary agreement regarding the delivery period, grace period, and penalty, and then calculate the start and end dates of the delay. For the rental expenses incurred by the purchaser due to the delay, we will require them to provide the lease contract, payment receipts, and invoices to prove that the losses are genuine and reasonable. In practice, the court generally supports the penalty explicitly agreed in the contract, and also accepts actual losses such as rent if the evidence is sufficient. For developers who defend against the claim with force majeure, we will focus on reviewing whether it truly affects the delivery of the housing and whether they have fulfilled their obligation to mitigate losses. Our lawyers pay attention to forming a complete chain of evidence with contracts, payments, and delivery notifications, thereby increasing the likelihood of support for various losses.

IV. Practical suggestions and legal basis

Action suggestions: First, check the specific standards and starting conditions for the penalty for late delivery of the house in the contract. You can refer to the relevant key points for reference.Special services and other casesFirst, the program will analyze the contract terms to determine the responsibilities of both parties in the event of a breach of contract. Second, it will calculate the breach of contract penalty based on the agreed upon standards by statistically analyzing the number of days of delay and the amount of payment already made. Third, it will collect the rental contract, payment receipts, and invoices to prove the actual losses. Fourth, it will collect the pre-sale contract, supplementary agreements, payment receipts, move-in notifications, and proof of delay. Fifth, if the developer claims force majeure as a defense, it will require the developer to provide evidence of the causal relationship. In terms of legal basis, Article 577 of the Civil Code of the People's Republic of China stipulates the liability for breach of contract; Article 584 stipulates the scope of compensation for losses; Article 585 stipulates the agreed upon breach of contract penalty and adjustment rules; Article 13 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over the Sale of Commercial Housing Contracts (amended on December 29, 2020) stipulates that if there is no agreement, the breach of contract penalty shall be determined by referring to the rental standard of similar houses in the same area.

5. Henglue Law Firm's Reminder

Risk Warning: Firstly, the standard of the breach of contract penalty shall be subject to the provisions of the contract. When signing the contract, attention should be paid to the terms of several ten thousandths of a day and the conditions for starting the calculation; Secondly, actual losses such as rent need to have a contract and payment receipts, otherwise it will be difficult to obtain support; Thirdly, if the developer uses force majeure as a defense, it should be reviewed whether it truly affects the delivery of the house and has fulfilled its obligation to mitigate losses; Fourthly, the breach of contract penalty and the path of terminating the contract are different. It should be chosen according to the current situation of the house. For disputes involving planning and delivery, reference can be made to the relevant provisions.Land expropriation and demolition, and administrative litigationThe column. It is recommended to fix the evidence of overdue payments and losses and calculate the amount as soon as possible.

VI. Frequently Asked Questions

Q1: What losses can be claimed for a delay in handing over the house?

Four types of losses can be claimed: first, the penalty for delayed delivery of the house, calculated according to the daily interest rate specified in the contract; second, the interest loss on the paid housing price; third, the reasonable expenses actually incurred due to the delayed delivery of the house, such as renting a house and moving, which require the provision of a lease contract and payment receipts; fourth, the refund of the housing price and compensation for breach of contract after the contract is terminated when the conditions for terminating the contract are met in accordance with the contract or the law. All losses should be supported by authentic and reasonable evidence, and the court will support them if the evidence is sufficient.

Q2: What evidence do I need to prepare for a claim for delayed housing delivery?

The following documents should be prepared: the pre-sale contract for commercial housing and the supplementary agreement, which prove the standard of the breach of contract penalty and the starting conditions; payment receipts, which prove the base amount of the paid housing price; the move-in notice, extension announcement, or overdue explanation issued by the developer, which prove the actual delivery time; rental contracts, rental invoices, and payment records, which prove the actual losses; and records of reminders and communication. These documents are used to calculate the number of days of delay, the base amount, and the amount of various losses, and are the core of claiming the breach of contract penalty and actual losses. The earlier these documents are fixed, the more accurate they will be.

Q3: How much does it cost to hire a lawyer to claim compensation for the delayed handover of the house?

The fees include attorney's fees and litigation fees. Attorney's fees are usually determined through negotiation based on the total price of the house, the amount of the claim, and the complexity of the case, and there is no uniform standard; litigation fees are charged by the court in accordance with the amount of the litigation request, and the losing party may bear some of the costs after the litigation is successful. The penalty for breach of contract and the subject of rental losses are usually less than the total price of the house, and the fees are relatively controllable. The specific amount depends on the scope of the claim and whether an evaluation is needed. It is recommended to make a preliminary judgment on the evidence and the path before making a decision.

Q4: How long does it usually take to resolve disputes over claims for delayed housing delivery?

Negotiating or sending a letter to prompt the developer to pay may resolve the issue within a few months. The first-instance litigation under the ordinary procedure generally takes no more than six months, which can be extended if the case is complex. The second-instance litigation takes about three months. If it involves adjustment of the breach of contract penalty, rent evaluation, or determination of force majeure, the time will be even longer. The key is to fix the delivery time and payment, and collect evidence of losses as soon as possible to avoid repeated procedures. The execution stage depends on the developer's ability to repay.

Q5: What should I do if the developer says they won't compensate for force majeure?

The developer should be required to provide evidence of the direct causal relationship between the force majeure and the delay. If the epidemic situation had already become normal before the contract was signed, or if bad weather or government meetings do not constitute substantial obstacles, it is usually difficult to determine exemption from liability. Purchasers can claim damages and actual losses in accordance with the contract provisions and legal provisions, and, if necessary, entrust lawyers to review whether the defense is valid. For reference, please refer to the following materials:Beijing Henglue Law FirmFor similar cases on the official website, we combine the payment and delivery records to determine the number of overdue days and the amount involved, and then initiate legal action against the debtor.

The above answer is based on the judicial practice in Beijing. The adjudicative opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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 real estate transactions·Attorney Tian Jiayan·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.