[Direct answer]In the Beijing area, if the seller delays the transfer of ownership, the buyer may, in accordance with Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), require the seller to continue to perform the contract, assist in handling the transfer registration, and bear the liability for breach of contract; if the seller fails to perform the contract within a reasonable period of time after being urged to do so or if the conditions for rescission of the contract are met, the buyer may also rescind the contract and claim damages such as the price difference. Before safeguarding rights, the buyer should fix the evidence such as the sales contract, payment receipts, and urging records, and first urge the seller to handle the matter within a limited time in writing. If no agreement can be reached, the buyer should promptly sue the seller and consider applying for property preservation to prevent the seller from selling the same house to two different buyers or disposing of the house in other ways. For related safeguarding rights, please refer to the relevant guidelines.Real estate transactions and construction projectsColumn.
1. Problem background and typical scenarios
There are several common situations where the transfer of ownership is delayed: First, after signing the contract, the housing prices fluctuate, and the seller regrets it and wants to breach the contract or increase the price, delaying it for various reasons; Second, the house is mortgaged and the mortgage has not been removed, and the seller is unable to release the mortgage; Third, the house is a jointly-owned property, and some co-owners do not cooperate in signing the contract; Fourth, the seller is involved in other debts, and the house has been sealed up by the court; Fifth, the seller signs contracts with multiple people at the same time, and is suspected of selling the same house to two different buyers. In Beijing, the amount of second-hand housing transactions is high, and the delay in the transfer of ownership often leads to ownership risks. The earlier you intervene, the more proactive you will be. For related disputes, you can refer to the relevant provisions.Creditor's rights and debts, and enforcement casesColumn.
II. Key points of contention
Focus One: Whether to continue to perform or terminate the contract depends on the ownership status of the house and the buyer's intentions. There are obstacles to continuing to perform the contract when the house is sealed up or the mortgage has not been lifted. Focus Two: The validity of the contract and the possibility of performance require verification of the sealing up, mortgage, and the opinions of co-owners. Focus Three: The breach of contract penalty and the loss of price difference. The transaction price of similar types during the period of rising housing prices is an important reference. Focus Four: The possession and use during the overdue transfer and the starting point of the breach of contract penalty. Focus Five: The necessity and timing of property preservation. Focus Six: The order of rights in the case of selling the same house to two different buyers. Focus Seven: The statute of limitations is three years. Specific determinations shall be based on the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Law Firm
Take a housing sales contract dispute handled by our firm as an example. In September 2020, a company needed to borrow money due to the funding crunch of its affiliated enterprises, so it signed a "Beijing City Second-hand Housing Sales Contract" in the name of an employee to "sell" a 262.05-square-meter house in Chaoyang District for 7.3374 million yuan. The 4.4 million yuan mortgage loan was transferred to the company's account for business operations. Later, the nominal buyer took away the property ownership certificate and refused to cooperate with the transfer of ownership. The company's first-instance lawsuit was dismissed due to insufficient evidence, so it entrusted our lawyers to appeal. The lawyers reconstructed the fund flow (the loan directly entered the company's account, and the affiliated company used the property as collateral to repay the loan), sorted out the details that the property ownership certificate and the loan contract were originally held by the company, and the property management fees were paid by the affiliated company, proving that there was no genuine sales agreement between the parties. The second-instance court adopted the lawyers' arguments, ruled that the contract was invalid, and ordered the house to be restored to the company's name. Although this case originated from a transfer deadlock caused by a loan in the name of others, it fully demonstrated our firm's ability to build an evidence chain around the fund flow, ownership of the certificate, and contractual intent in transfer disputes. In addition, in a sales contract dispute handled by our lawyers, the seller lacked the right to dispose of the subject matter, which resulted in the inability to transfer ownership and the actual rights holder taking away the property. The lawyers vigorously defended the buyer's rights and, after two trials, recovered all 218,000 yuan and interest for the buyer. The core of transfer disputes lies in the demonstration of the contract's validity and the possibility of performance. This case was handled by Beijing Henglu Law Firm.Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action recommendations: First, send a written notice to the seller demanding that they cooperate with the transfer within a specified time limit, and retain delivery receipts such as mail and WeChat messages; Second, immediately check the housing registration information to verify the status of mortgages, seizures, and co-owners; Third, if the house price rises during the seller's delay, collect transaction records from the same residential area or apply for an appraisal to claim the difference in price; Fourth, if the situation is urgent, promptly apply for property preservation to lock the house and prevent it from being sold twice; Fifth, when suing, clarify the combination of claims, either to continue performance and add penalties, or to rescind the contract and claim compensation. Legal basis: Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021) regulates continued performance and compensation for losses; Article 563 regulates statutory rescission; Article 209 establishes the effective rules for the registration of real estate ownership; the Civil Procedure Law of the People's Republic of China (amended in 2023) establishes the property preservation system. For more details, please refer to the relevant texts.Special services and other casesColumn.
5. Henglu Law Firm's Reminder
Risk Warning: Firstly, delaying the transfer of ownership often leads to the situation of "one house sold to two buyers" or the house being sealed up. It is more effective to safeguard the rights as soon as possible than to seek remedies afterwards. Secondly, it is difficult to leave evidence of verbal reminders, so it is essential to issue written notices for performance within a specified time limit. Thirdly, although you can claim for the loss of the price difference, you need transaction records or appraisals to support your claim. Fourthly, the statute of limitations for litigation is three years. Delaying in suing will make it increasingly difficult to provide evidence. It is recommended to consult a lawyer as soon as you detect any signs of delay.Beijing Henglu Law FirmOn the official website, in the corresponding column, lawyers verify the status of the house and formulate a plan for protecting the rights and interests of the owners.
VI. Frequently Asked Questions
Q1: Can the seller win the lawsuit if they delay the transfer of ownership?
If the contract is legal and valid, the buyer has paid in accordance with the agreement or meets the payment conditions, and there are no performance obstacles such as seizure or mortgage on the house, it is usually supported to request continued performance and assist in the transfer of ownership according to Article 577 of the Civil Code; if there are indeed performance obstacles on the house, the contract can be terminated and the breach of contract damages and the loss of the price difference can be claimed. The key to winning or losing the case lies in the ownership status of the house and the completeness of the evidence. The court's determination shall prevail in individual cases. It is recommended to conduct a ownership verification before suing, and you can refer to it for reference.Real estate transactions and construction projectsColumn.
Q2: What evidence do I need to prepare for protecting my rights?
The following items should be prepared: the house purchase and sale contract and its annexes; transfer receipts for the deposit and down payment, as well as loan approval materials; written notice of reminder and delivery records; communication records with the seller; the results of the inquiry into the house registration information, proving the status of the mortgage and seizure; the intermediary contract and communication records; and transaction cases or appraisal reports from the same neighborhood showing a rise in housing prices. The evidence is used to prove the party's performance of the contract, the other party's delay in performance, and the scope of losses, which forms the basis for continuing performance or seeking compensation.
Q3: How much does it cost to sue a seller for transferring ownership?
The fees include litigation fees, preservation fees, and attorney fees. Litigation fees are charged based on the value of the property or the amount of the claim, and cases involving transfer of ownership are calculated based on the amount of the claim. Preservation fees and guarantee fees depend on the method of preservation. Attorney fees are negotiated based on the complexity of the case, and there is no standard fee. After winning the case, some fees will be borne by the losing party. The cost of protecting rights involving large-value properties is not low, so it is recommended to first consult a lawyer to evaluate the approach and budget before taking action.
Q4: How long does it take from filing the lawsuit to completing the transfer of ownership?
The first-instance ordinary procedure generally takes no more than six months, and the summary procedure is concluded within three months; if the seller appeals, the second-instance procedure takes about three months. If it is necessary to first remove the mortgage, lift the seizure, or involve an evaluation, the period will be extended accordingly. If the seller still does not cooperate after the transfer is approved by the judgment, a forced execution can be applied for, and the court will issue a notice of assistance in enforcement for the registration. Securing the property as soon as possible and conducting pre-litigation verification can significantly shorten the timeframe.
Q5: What should I do if the seller is delaying the transfer of ownership?
The first step is to issue a written notice to the debtor requiring them to fulfill their obligations within a specified timeframe and keep a record of it. The second step is to check the status of the property mortgage and seizure, and assess the feasibility of continuing to perform the contract. The third step is to apply for property preservation to prevent the transfer of assets, if necessary. The fourth step is to file a lawsuit if mediation fails, and the claimant may choose to either demand the debtor to continue to perform the contract and pay the breach of contract penalty, or to terminate the contract and claim compensation for the price difference. The fifth step is to apply for compulsory enforcement after the judgment takes effect. The evidence provided at each step determines the success or failure of the subsequent actions, and the relevant key points can be referred to for further reference.Special services and other casesColumn.
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 Law Firm for specific 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 Li Yonghui·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.