[Direct answer]In the Beijing area, when sellers breach the contract and refuse to sell the house, it is an effective and commonly adopted way to resolve disputes through lawyer's intervention and mediation. According to Article 577 of the Civil Code of the People's Republic of China (effective from 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 breach of contract liabilities as continuing to perform the contract, taking remedial measures, or compensating for losses. Lawyer's mediation can prompt both parties to resume performance, pay breach of contract penalties, or terminate the contract and provide compensation before litigation, which not only saves time and cost, but also reserves the option of litigation and arbitration. The relevant process can be referred to for reference.Real estate transactions and construction projectsColumn.
1. Problem background and typical scenarios
In second-hand housing transactions, sellers often breach contracts at the juncture of price fluctuations or when they seek to sell to buyers at higher prices. Common scenarios include: first, after the price of the house rises, the seller changes his mind and refuses to transfer the ownership; second, selling the same house to two different buyers at the same time; third, breaching the contract on the grounds that the co-owners do not agree or the spouse has not signed the contract; fourth, delaying the online signing, loan application, and transfer process to breach the contract in disguise; fifth, demanding an additional price increase. When handling similar cases in Beijing, the court usually first verifies the validity of the contract and the ownership status of the house, and then determines the feasibility of continuing to perform the contract. Relevant contract disputes can be referred to for reference.Business and contract disputes in enterprisesColumn.
II. Key points of dispute
First, the validity of the contract and whether there is fraud, malicious collusion, or violation of mandatory legal provisions. Second, the feasibility of continued performance and whether the house has been sold to a bona fide third party. Third, the application of the penalty for breach of contract and the penalty for the deposit. If the agreed amount is too high or too low, the party may request an adjustment. Fourth, whether the objections of the co-owners are valid and whether they constitute unauthorized disposition. Fifth, the choice between mediation and litigation. Mediation is efficient but requires the cooperation of the other party. Sixth, the clues to the property of the breaching party and subsequent enforcement. Relevant matters can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn. Specifically, the information in this column is subject to the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Lawyers
In cases of breach of contract in housing transactions, the lawyers of our firm often adopt lawyer's mediation as one of the first-choice strategies. The advantages of mediation include low cost, short duration, and low confrontation, as well as the ability to solidify the facts of breach of contract and fix the breach of contract penalty or compensation plan before litigation. In practice, lawyers will first systematically organize the housing sales contract, payment receipts, communication records, and evidence of breach of contract, and explain the cost of breach of contract (continued performance, breach of contract penalty, litigation fees, and execution risks) to the seller, so as to promote re-performance or settlement compensation. If mediation fails, the case will be promptly transferred to litigation and, if necessary, an application for property preservation will be made. For cross-category rights protection, reference can also be made to this approach.Special services and other casesThe column. Professional intervention can often significantly improve the probability of collecting payments and fulfilling obligations.
IV. Practical suggestions and legal basis
Action proposal: Firstly, when signing the contract, it is necessary to clarify the liability for breach of contract, the penalty for breach of contract, and the deposit clause. You can refer to the relevant text points for referenceReal estate transactions and construction projectsFirst, the buyer should immediately report the breach of contract to the platform and keep relevant evidence, such as contracts, transfer records, and screenshots of communication with the intermediary via WeChat. Second, the buyer should send a reminder letter to the seller and keep the relevant proofs as preparation for mediation and litigation. Third, the buyer should evaluate whether the house has been sold to another buyer and, if necessary, apply for property preservation. Fourth, if mediation fails, the buyer should promptly file a lawsuit and claim for performance of the contract or compensation. In terms of legal basis, Article 577 of the Civil Code (effective January 1, 2021) stipulates the liability for breach of contract, Article 580 stipulates the continuation of performance, Article 585 stipulates the penalty for breach of contract, Articles 586 to 588 stipulate the deposit and penalty for the deposit, and Article 595 defines the sales contract.
5. Henglu Law Firm's Advice
Risk Warning: Firstly, the earlier the seller intervenes and takes the initiative in breaching the contract, the more likely it is that the house will be sold to another buyer and it will be difficult to recover; Secondly, mediation is efficient, but it is necessary to keep a backup plan. The agreement should clearly state the consequences of breaching the contract; Thirdly, if the house has already been transferred to a third party, it may be difficult to continue to perform the contract, and it is necessary to turn to compensation; Fourthly, attention should be paid to the connection between property preservation and enforcement, and reference can be made to it.Creditor's rights and debts, and enforcement casesColumn. It is recommended to entrust professional lawyers to coordinate mediation, litigation, and preservation to avoid leaving rights unprotected.
VI. Frequently Asked Questions
Q1: Is it really effective for a lawyer to mediate a seller's breach of contract?
It is effective and often adopted. Lawyer mediation can prompt the seller to fulfill their obligations again, pay the breach of contract penalty, or rescind the contract and compensate before litigation. The cost of mediation is lower than that of litigation, and it can simultaneously fix the evidence of breach of contract and reserve the right to sue later. However, mediation requires the cooperation of the other party. If the seller maliciously breaches the contract or has already sold the house to someone else, it is necessary to promptly transfer the case to litigation and preservation, and let the court handle it by force.
Q2: What evidence do I need to prepare for mediation?
The following items should be prepared: the house purchase and sale contract and supplementary agreement; receipts for the payment of the deposit and the purchase price; communication records with the seller and the agent, including content in WeChat, text messages, and emails admitting breach of contract or requesting a price increase; materials related to online signing and loan processing progress; and records of the house ownership and whether it has been sold to others. The more complete the evidence is, the more confident we will be in applying pressure during mediation and in subsequent litigation.
Q3: How much does it cost to hire a lawyer for mediation?
The attorney's fees are determined through negotiation based on the case's subject matter, complexity, and current stage, with no standardized rates. The fees for participating in pre-litigation mediation are typically lower than those for full litigation representation. If the mediation fails and the case proceeds to litigation, the fees will be agreed upon separately. It is recommended to first consult on the contract amount, breach of contract circumstances, and the condition of the property, and then evaluate the situation before deciding whether to hire a lawyer and which approach to adopt.
Q4: How long does it usually take to mediate a dispute where a seller breaches the contract?
If both parties are sincere in pre-litigation mediation, a solution can be reached within a few weeks to two or three months. However, if the seller repeatedly refuses to cooperate or has already sold the property to someone else, the mediation may fail and the case will proceed to litigation. The first-instance ordinary procedure generally takes no more than six months, and the second-instance procedure takes about three months. The key is to secure evidence as soon as possible and set clear bottom lines to avoid unnecessary delays and procrastination in realizing one's rights and interests.
Q5: What should I do if the seller unilaterally breaches the contract and refuses to cooperate with the mediation?
You can immediately send a letter of reminder and keep the proof, then sue the court to claim the continuation of the contract or the termination and compensation for the breach of contract and the loss of price difference; if there is a risk of the house being transferred, apply for property preservation. After the judgment takes effect, if the other party still fails to perform, apply for enforcement, and the relevant enforcement can be referred to for referenceCreditor's rights and debts, and enforcement casesColumn. It is recommended to entrust a lawyer to advance the litigation and preservation simultaneously.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.
If you are 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 publicly available 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.