[Direct answer]In the Beijing area, if the seller breaches the contract by refusing to transfer ownership or raising the price temporarily, the buyer may request the seller to continue to perform the contract, assist in handling the transfer registration, or rescind the contract and claim the return of the paid amount, the payment of the breach of contract penalty, and compensation for the loss of the housing price difference. If necessary, the buyer may also apply for property preservation and seize the involved houses to prevent the sale of the same house to two different buyers. The litigation process includes: preparing evidence for the lawsuit, the court registering the case, delivering the defense, presenting and cross-examining evidence, holding a trial, and making a judgment. The ordinary first-instance procedure generally concludes within six months from the date of registration, and the summary procedure concludes within three months. If the other party appeals, the second-instance procedure usually concludes within three months. After the judgment takes effect, if the seller refuses to perform the contract, the buyer may apply for forced execution. The statute of limitations is three years, in accordance with Article 188 of the Civil Code of the People's Republic of China (effective January 1, 2021). For reference only.Property transactions and construction projectsColumn.

1. Problem background and typical scenarios

These types of lawsuits are common in several situations: First, after signing the contract, the price of the house rises, and the seller refuses to proceed with online signing and transfer of ownership for various reasons, or even sells the same house to two different buyers; Second, the seller delays the release of the mortgage or refuses to cooperate with the loan and transfer process; Third, the house is sealed up in another case or there is a dispute over ownership, making it impossible to transfer ownership; Fourth, the seller demands an increase in the price or terminates the contract otherwise, and the buyer has already paid a deposit or a large sum of money for the house; Fifth, the seller goes missing, and the transaction stagnates. With the active second-hand housing transactions in Beijing, such breach of contract disputes are prone to occur during periods of price fluctuations. The related purchase risks can be referred to for reference.Property transactions and construction projectsColumn.

II. Key points of contention

First, whether to continue to perform or to rescind the compensation depends on whether the contract can actually be performed and the buyer's willingness. If the house has not been sealed up and the buyer has the ability to pay, the court will usually order the contract to be performed. Second, regarding the choice and adjustment of the breach of contract penalty and the loss of the price difference, if the agreed amount is too low, the buyer can claim to increase it according to the actual loss. Third, when a house is sold twice, who can obtain ownership? Those who have completed the registration or legally occupied it first usually have priority. Fourth, whether the deposit penalty and the breach of contract penalty can be used concurrently. Generally, one of them should be chosen, or the difference between the two should be supplemented by a claim. Fifth, the necessity and timing of preservation. Sixth, the impact of the seller's spouse or co-owners' disagreement with the sale on the validity and performance of the contract. Specifically, the current effective laws and regulations and judicial judgments shall prevail.

III. Professional analysis by Henglue Lawyers

Taking the two housing sale and purchase breach of contract cases handled by our firm as examples, we can observe the adjudication path of such litigations. First, the dispute over the pre-sale contract for a commercial housing unit between Zhang Quan and a real estate development company: The pre-sale contract was signed on April 30, 2021, for a total purchase price of 6,841,972 yuan, with delivery scheduled for June 15, 2023. The supplementary agreement granted a 90-day grace period, and after the grace period expired, the developer was required to pay a breach of contract penalty of 0.01% of the total price per day. However, the developer delayed delivery until March 5, 2024, nearly nine months after the due date, and claimed force majeure exemptions due to the pandemic and other factors, as well as the cumulative application of the grace period. Zhang Quan entrusted Tian Jiaoyan, a lawyer from Beijing Henglu Law Firm, to sue the developer, claiming a breach of contract penalty of 118,366.12 yuan from September 14, 2023 to March 5, 2024. The lawyer pointed out that the pandemic was foreseeable and common prior to the contract signing, and thus did not constitute force majeure. Adverse weather conditions and government meetings were also not exempting grounds, and the grace period should be strictly applied according to the contract terms. The court accepted the lawyer's argument and ruled that the developer must pay the full breach of contract penalty of 118,366.12 yuan and bear the litigation costs. Second, in a commercial housing sale dispute represented by Attorney Liu Donghua, the developer failed to deliver the property for years and the project's suspension constituted a fundamental breach of contract. The court ordered the rescission of the sales and loan contracts, the return of the down payment of 267,188 yuan and the repayment of the principal and interest of 1,547,83.01 yuan, as well as compensation of 50,000 yuan. These two cases demonstrate that the defendant's defense of force majeure is difficult to hold water in the face of complete evidence chains, and the plaintiff's claims for breach of contract penalties and damages are generally supported. This case was handled by Beijing Henglu Law Firm.Tian JiayanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical Suggestions and Legal Basis

Action suggestions: First, immediately secure the contract, payment receipts, reminder records, chat and call recordings to establish the facts of the breach of contract; Second, before suing, check the ownership of the house and the status of the seizure, and assess the possibility of continuing to perform the contract; Third, apply for property preservation as soon as possible to prevent the house from being transferred to a third party; Fourth, make clear the litigation requests, and prepare a contingency plan for compensation when claiming to continue to perform the contract. At the same time, claim the loss of the price difference if the agreed penalty is too low. For the relevant text points, you can refer to the following content:Special services and other cases1. Columns; 2. Pay attention to the statute of limitations and the evidentiary period. 3. In terms of legal basis, Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates breach of contract liability, Article 585 stipulates the rules for judicial adjustment of breach of contract penalties, and Article 563 stipulates that in the event of a fundamental breach of contract, the party in compliance may terminate the contract. 4. The litigation period follows the provisions of the Civil Procedure Law of the People's Republic of China (amended in 2023) regarding trial deadlines. In general, first-instance ordinary procedures should be concluded within six months, and summary procedures within three months.

5. Henglu Law Firm's Reminder

Risk Alert: First, during the period of fluctuating housing prices, the probability of sellers breaching contracts increases. If you detect any signs of breach of contract, you should immediately send a written reminder to preserve evidence; Second, once the house is transferred to a bona fide third party, the request for continued performance may fail, and you can only turn to rescission and claim compensation, which is an urgent matter; Third, the higher the agreed penalty, the more likely it will be reduced. Claiming the loss of the price difference requires an appraisal report to support it; Fourth, if the seller has no assets under his/her name during the enforcement stage, the repayment period will be prolonged. It is recommended to entrust a professional lawyer to coordinate preservation and litigation as soon as possible. For more information, please consult us.Beijing Henglue Law FirmIt's a similar column on the official website.

VI. Frequently Asked Questions

Q1: Can a seller win a lawsuit if they breach the contract and raise prices?

If the contract is legal and valid, and the buyer performs according to the agreement but the seller refuses to transfer the ownership or demands an additional payment, the buyer has a strong basis for winning the case: the court may order the seller to continue to perform the contract and assist in the transfer of ownership, or terminate the contract and return the purchase price to the buyer, and pay the breach of contract damages and compensate for the loss of the price difference. Whether the contract can be continued depends on whether the house has been sealed up or has been sold and transferred to another party. Cases with complete evidence and timely preservation usually have more favorable outcomes. The outcome still depends on the facts and evidence of each case. It is recommended to conduct an evidence evaluation first.

Q2: What evidence do I need to prepare to sue the seller for breach of contract?

The following items should be prepared: the house purchase and sale contract and supplementary agreement; the payment receipts for the deposit and the purchase price; online signing and loan approval materials; chat records, call recordings, and written reminders showing that the seller refuses to transfer ownership or demands a price increase; the results of inquiries into the ownership and seizure status of the house; and evidence of losses, such as a valuation of the house price at the same period and the difference in purchase prices for alternative properties. The more complete the evidence is, the more convincing the claim for breach of contract penalties and loss of price differences will be.

Q3: How much does it cost to file a lawsuit against a breach of contract in the second-hand housing market?

The fees include litigation fees, preservation fees, and attorney fees: litigation fees are charged in stages according to the amount of the litigation request, and those for claiming breach of contract penalties and housing prices are calculated based on the amount of the subject matter; preservation fees and guarantee fees depend on the amount of the preserved assets; attorney fees are negotiated based on the complexity of the case and the amount of the subject matter. After winning the lawsuit, some fees will be borne by the breaching party. It is recommended to first evaluate the value of the house and the scale of the losses, and then calculate the input and output.

Q4: How long does it take to get the results of the litigation process?

From filing the lawsuit to issuing the judgment, the first-instance ordinary procedure generally concludes within six months, and the summary procedure within three months; if the seller appeals, the second-instance procedure takes about three months. If the judgment orders the continuation of performance, the transfer of ownership can be processed based on the effective judgment; if the judgment orders the payment but the other party refuses to perform, the applicant can apply for enforcement, and the enforcement period will depend on the other party's financial situation. Overall, the process usually takes between six months and one and a half years. Proper preservation and mediation can significantly speed up the process.

Q5: What should you do if the seller refuses to transfer ownership in the first step?

The first step is to issue a written notice and keep the evidence of delivery, clearly requiring the other party to perform within a specified time limit; the second step is to check the status of the house, including whether it has been sealed up, mortgaged, or sold to others, to determine whether the contract can still be performed; the third step is to apply for property preservation and seize the house involved in the case; the fourth step is to sue for the continuation of the transfer of ownership or the termination of the contract, the return of the down payment, and the compensation for the breach of contract and the loss of the price difference; the fifth step is to promptly hire a professional lawyer for assistance, and you can refer to the following for more information:Real estate transactions and construction projectsColumn.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations 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, 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 public 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.