[Direct answer]In the Beijing area, when developers are sued for breach of contract in cases of delayed delivery of housing, the core evidence focuses on four aspects: contractual provisions, payment facts, delayed delivery, and losses. According to Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), if the seller fails to deliver the house as agreed, they shall bear such breach of contract liabilities as continuing performance and compensation for losses; Article 585 allows for the payment of breach of contract penalties as agreed. Before filing a claim, the buyer should prepare the sales contract for commercial housing and supplementary agreements, payment receipts, records of reminders and delivery notifications, and carefully check the provisions on the grace period. The breach of contract penalties shall be calculated from the expiration of the grace period. For related evidence collection and claim points, please refer to the relevant materials.Real estate transactions and construction projectsColumn.

I. Problem background and typical scenarios

Such disputes are common in several situations: First, the delivery of the off-plan property is delayed for several months or even longer, and the developer uses the pandemic, bad weather, etc. as excuses to defend against the claim; Second, the supplementary agreement sets a grace period, and the two parties disagree on the starting point of the breach of contract penalty; Third, the project is stalled for a long time, and the buyer considers terminating the contract and demanding the return of the house payment; Fourth, non-residential properties such as shops and parking spaces are delivered late; Fifth, the delay in delivery is accompanied by quality defects, and the developer claims that the defects do not affect the delivery. When the Beijing area court tries such cases, it usually first reviews the contract provisions and the facts of the delay, and then determines whether the exemption defense can be established and the standard of the breach of contract penalty. Relevant disputes can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

II. Key points of contention

Focus One: Determination of the fact of delay. Compare the delivery date stipulated in the contract with the actual delivery date, and pay attention to the deduction of the grace period. Focus Two: Whether the defense of force majeure is valid. If factors such as the pandemic were foreseeable at the time of contract signing, it generally does not constitute an exemption from liability. Focus Three: The standard of the breach of contract penalty. It is more common to set the penalty at 0.01% to 0.05% of the daily paid housing price. If the agreed penalty is excessively high or low compared to the actual losses, the parties may request adjustment. Focus Four: Evidence of payment and notice of default directly affect the starting period and amount of the breach of contract penalty. Focus Five: Whether the contract can be rescinded. If the delay meets the agreed conditions for rescission or the delivery is still not completed within a reasonable period after being given notice, the party may claim rescission. Focus Six: The statute of limitations is three years. Delaying claims will increase the difficulty of providing evidence. Specific determinations shall be based on the current effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Law Firm

Take a dispute over a pre-sale contract for commercial housing handled by our firm as an example. On April 30, 2021, Zhang Quan signed the "Beijing City Commercial Housing Pre-sale Contract" with a real estate development company in Beijing to purchase a house in a certain residential area, with a total price of 6,841,972 yuan and a delivery date agreed upon before June 15, 2023. On the same day, a supplementary agreement was signed, which stipulated a 90-day grace period. After the grace period expired, the developer would pay a penalty of one-ten-thousandth of the total price per day. However, the developer failed to deliver the house until March 5, 2024, nearly nine months after the due date. Zhang Quan entrusted our firm's lawyers to sue the developer and claimed 118,366.12 yuan in penalties for the period from September 14, 2023 to March 5, 2024. The developer claimed force majeure exemptions due to the pandemic, severe weather, and government meetings, and argued that the grace period could be cumulated with other delays. The lawyers pointed out that the contract was signed in 2021, and the pandemic had already become a normal situation at that time, so it did not constitute force majeure. The grace period should be strictly applied according to the contract and could not be arbitrarily cumulated. The penalty of one-ten-thousandth of the total price per day reflected the parties' true intention and was legally valid. The lawyers organized payment receipts, move-in notifications, and completion and acceptance filing materials to form a complete chain of evidence. The court adopted the lawyers' arguments and ruled that the developer should pay 118,366.12 yuan in penalties and bear the litigation costs. This case shows that a complete chain of evidence consisting of the contract, supplementary agreements, payment receipts, and move-in notifications is the key to successful claims. The case was handled by Beijing Henglue Law Firm.Tian Jia YanThe attorney (practice certificate number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: 1. First, immediately retrieve the contract and supplementary agreements to identify the agreed delivery date, grace period, and penalty clauses. 2. Secure payment receipts, including down payment transfer records and loan disbursement certificates. 3. Preserve time-sensitive evidence such as reminder letters, move-in notifications, and delivery confirmation forms. It is advisable to send reminders in writing and retain proof of delivery. 4. Collect completion and acceptance records and housing quality records to refute defenses that the property fails to meet delivery conditions. 5. If the actual losses exceed the agreed penalty, claim adjustment of compensation. Legal basis: Articles 577 and 585 of the Civil Code of the People's Republic of China (effective January 1, 2021) regulate breach of contract liability and penalties, while Article 563 governs statutory termination. The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commercial Housing Sales Contracts (amended in 2020 and effective January 1, 2021) also stipulates rules on property delivery and breach of contract liability. For key points of relevant texts, please refer to the following link:Special services and other casesColumn.

5. Henglu Law Firm's Advice

Risk Warning: First, the penalty for breach of contract is accumulated on a daily basis, so it's advisable to initiate a claim as soon as possible and pay attention to the three-year statute of limitations. Second, developers often use force majeure and the accumulation of grace periods as defenses, so it's necessary to prepare counter-evidence in advance. Third, it's difficult to leave a record with only verbal reminders, so it's more reliable to send written reminders and keep the delivery records. Fourth, if the delay is too long or the project is suspended, you can evaluate whether to terminate the contract and claim for refund and compensation. It is recommended to consult a lawyer as soon as possible.Beijing Henglu Law FirmOn the official website, in the corresponding column, professional lawyers calculate the breach of contract penalties and formulate solutions.

VI. Frequently Asked Questions

Q1: Can developers win lawsuits if they fail to deliver the houses on time?

It depends on the evidence and the contractual provisions. As long as it can be proven that the agreed delivery date has passed, the house has not been delivered as agreed, and there are no valid exemption clauses, claiming breach of contract penalties according to Article 577 of the Civil Code can usually be supported; if the developer uses the pandemic and other defenses, if the relevant factors were foreseeable at the time of signing the contract, they are generally not valid. In the cases handled by our firm, there is an example of ordering the developer to pay the full breach of contract penalty of 118,366.12 yuan. The result still depends on the evidence of each case and the court's determination. It is recommended to evaluate the case first before suing, and you can refer to it for reference.Property transactions and construction projectsColumn.

Q2: What evidence do I need to prepare for a claim for delayed delivery of the house?

The following items should be prepared: the commercial housing sales contract and supplementary agreement, specifying the delivery date, grace period, and penalty clause; payment receipts, including the transfer of the down payment and the record of loan disbursement; demand letters and delivery receipts; evidence of the actual delivery time, such as move-in notices and handover confirmation forms; completion and acceptance records and quality records; and evidence of actual losses, such as rental contracts and rental payment records. The more complete the evidence is, the stronger the claim for the penalty period and amount will be.

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

The fees include attorney fees and litigation fees. The attorney fees are determined through negotiation based on the complexity of the case and the amount of the claim, with no standard rate; the litigation fees are charged in stages according to the amount of the litigation request, and the losing party is required to bear the fees according to the judgment after the victory. In the case of the default penalty for delayed delivery handled by our firm, the developer was ordered to bear the litigation fees. For cases with relatively small default penalties, the overall cost is relatively controllable. It is recommended to consult first and then make a budget.

Q4: How long does it take to sue a developer for failing to deliver the house on time?

The first-instance ordinary procedure generally takes no more than six months, and the summary procedure is concluded within three months; mediation results in a faster resolution. If the developer appeals, the second-instance procedure takes about three months. If the developer refuses to perform after the judgment takes effect, you can apply for compulsory execution. The penalty is calculated on a daily basis, and delaying the lawsuit will prolong the overall period. It is recommended to fix the evidence and sue as soon as possible to avoid disputes during this period.

Q5: What should I do if I want to check out but it's already past the deadline?

First, check the contractual conditions for termination. For example, if the buyer has the right to terminate the contract if the delay exceeds a certain number of days; if there are no contractual provisions or the conditions have not been met, the buyer may claim termination in accordance with Article 563 of the Civil Code after giving a written notice. After termination, the buyer may request the return of the paid housing price, interest, and compensation for losses. The mortgage loan contract may also be requested to be terminated, and the remaining loan shall be repaid by the developer. Since returning the house involves significant trade-offs of interests, it is recommended to entrust a lawyer to evaluate the situation before proceeding with the process.

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

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.