[Direct answer]In the Beijing area, if the seller refuses to transfer the ownership of the property after breaching the contract, the buyer can sue to demand the seller to continue to perform the contract. 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, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. Article 580 stipulates that, in principle, monetary debts can be requested to be performed, except for cases where non-monetary debts cannot be performed legally or factually. Key points of the lawsuit: Submit a lawsuit to the court where the property is located, requesting the court to order the seller to assist in transferring the ownership and paying the breach of contract penalty, and apply for property preservation to seize the involved property to prevent the seller from selling the same property to two different buyers. It is recommended to first fix the evidence of payment, reminder, and the seller's breach of contract, which can be referred to for reference.Property transactions and construction projectsColumn.
I. Problem Background and Typical Scenarios
Such disputes often occur in several situations: First, after signing the contract, the house price rises, and the seller demands an increase in the price or refuses to transfer the ownership; Second, the seller "sells the same house to two buyers", sells the house separately and registers it under someone else's name; Third, the seller delays the receipt of payment and the transfer of ownership on the grounds of difficulties in capital turnover; Fourth, there are co-owners of the house, and some co-owners regret their decision and refuse to sign the contract; Fifth, the house still has a mortgage that has not been lifted, and the seller is unable to lift the mortgage. When the Beijing District Court hears such cases, it usually first reviews the effectiveness of the contract, the buyer's payment performance, and the current status of the house, and then determines whether to order the seller to perform the contract or to rescind the contract and compensate for the losses.
II. Key points of contention
First focus: Whether the buyer can continue to fulfill the contract, and whether the house has been sold to another party or there are obstacles to performance such as seizure or mortgage. Second focus: The contractual validity of jointly owned houses, and the impact of some co-owners' signatures on the performance of the contract. Third focus: The order of performance of the buyer's payment obligation and the seller's obligation to transfer ownership, and the application of the defense of simultaneous performance. Fourth focus: Judicial adjustment of excessively high or low penalties for breach of contract. Fifth focus: The ownership of the house in the case of "one house sold to two buyers". Generally, the buyer who has completed the transfer of ownership will obtain ownership first, and the untransferred buyer will turn to claiming compensation. Sixth focus: The timeliness of property preservation has an impact on the ultimate realization of rights. Specifically, please refer to the currently effective laws, regulations, and judicial rulings. For cases involving the buyer's resistance to the seller's creditor's enforcement, you can make reference to the relevant provisions.Creditor's rights and debts, and enforcement casesColumn.
III. Professional analysis by Henglue Law Firm
When claiming to continue to perform the contract or to breach the contractual obligations, the accurate interpretation of the contract terms and the chain of evidence of performance are crucial. Take a dispute over a pre-sale contract for commercial housing handled by our firm as an example: On April 30, 2021, Zhang * signed the "Beijing City Commercial Housing Pre-sale Contract" with a real estate development company in Beijing to purchase House No. 302 in a certain residential area with a total price of 6,841,972 yuan, with a delivery date agreed upon before June 15, 2023. The supplementary agreement stipulated a 90-day grace period, after which the developer would pay a breach of contract penalty of one-ten-thousandth of the daily paid housing price. However, the company did not deliver the house until March 5, 2024, nearly nine months after the due date, and invoked force majeure to exempt itself from liability, citing factors such as the pandemic and bad weather. Zhang * entrusted our firm's lawyers to initiate litigation. The lawyers pointed out that the pandemic had already become a normal situation before the contract was signed, so the developer should have foreseen it and it did not constitute force majeure; the grace period should be strictly applied according to the contract and not accumulated; and the breach of contract penalty clause was a true expression of intention and legally valid. The court adopted the lawyers' opinion and ruled that the company should pay a breach of contract penalty of 118,366.12 yuan and bear the litigation costs. This case shows that carefully reviewing the contract and supplementary agreement and building a complete chain of evidence of performance before initiating litigation can directly determine the outcome of the case. This case was handled by Beijing Henglu Law Firm.Tian JiayanThe 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 recommendations: First, organize contracts, payment receipts, online signing and filing records, and reminder records to confirm that the buyer has fulfilled its obligations without any defects; Second, check the ownership and restriction status of the house to ensure that there are no obstacles to performance such as resale, seizure, or mortgage; Third, sue at the same time and apply for the seizure of the involved house to prevent the seller from selling the same house to two different buyers; Fourth, request the seller to continue to perform the contract and require the seller to bear the breach of contract penalty and litigation costs; Fifth, prepare the taxes and loan procedures required for the transfer of ownership and cooperate with the court's enforcement. For related preservation and documental points, please refer to the relevant materials.Special services and other casesThe column. In terms of legal basis, Article 509 of the Civil Code of the People's Republic of China (effective January 1, 2021) requires parties to fully perform their contractual obligations. Articles 577 and 580 stipulate the continuation of performance and its exceptions, and Article 85 sets out the rules for liquidated damages and their judicial adjustment.
5. Henglue Law Firm's Advice
Risk warning: Firstly, before suing for continued performance, it is necessary to confirm that the house can be legally and factually transferred, otherwise, the buyer may face the time cost of changing the lawsuit request; Secondly, in the case of "one house sold to two buyers", only after registration will the change of property rights occur. The buyer should promptly preserve the evidence and claim priority protection in the lawsuit; Thirdly, the claim for breach of contract must have a contractual basis. If the agreement is unclear, the buyer can claim compensation for the loss of the house price difference; Fourthly, delaying the lawsuit will increase the difficulty of enforcement, so it is advisable to sue and preserve the evidence as soon as possible. It is recommended to entrust a professional lawyer to formulate a litigation plan. You can visitBeijing Henglue Law FirmPlease refer to the similar columns on the official website for more information.
VI. Frequently Asked Questions
Q1: If the seller breaches the contract and refuses to transfer the ownership, can I win the lawsuit?
Under the condition that the contract is valid, the buyer has paid according to the agreement, and the house meets the conditions for transfer of ownership, the court generally supports the continuation of performance and orders the seller to assist in handling the transfer of ownership. If the breach of contract penalty or the loss of the price difference is supported by the contract and evidence, it can also be supported. However, if the house has been sold to another party, sealed up, or there are other obstacles to performance, the court may only terminate the contract and seek compensation. The outcome depends on the current status of the house and the evidence. Before suing, you should first check the registration status and assess the feasibility.
Q2: What evidence is needed to sue for continued performance?
The main evidence includes: the sales contract and supplementary agreements; payment receipts and loan approval documents; online signing and registration information; WeChat messages, text messages, lawyer's letters and delivery records urging the seller to transfer ownership; evidence of the current condition of the house; and evidence of the seller's breach of contract, price increase, or sale to others. The evidence should be able to prove that the contract is valid, that the buyer has performed according to the contract, and that the seller has refused to perform, which is the basis for winning the case and directly affects the determination of the breach of contract penalty and the loss of the price difference.
Q3: How much does it cost to litigate this kind of lawsuit?
The litigation fees are charged in stages according to the value of the house, that is, the subject matter. In the Beijing area, where the value of real estate is high, the litigation fees are usually tens of thousands of yuan. The attorney's fees are determined through negotiation based on the complexity of the case. Applying for preservation of evidence also requires paying preservation fees and guarantee fees. After winning the case, the litigation fees will be borne by the losing party. It is recommended to evaluate the total cost based on the value of the house, the strength of the evidence, and the seller's repayment ability, and then decide on the litigation strategy and the scale of investment.
Q4: How long does it take from filing a lawsuit to completing the transfer of ownership?
The first-instance ordinary procedure generally takes no more than six months, and the summary procedure takes about three months; if the other party appeals, the second-instance procedure takes about three months; if the seller still does not cooperate after the judgment takes effect, the buyer can apply for compulsory enforcement, and the court will issue a notice of assistance in enforcement to handle the transfer of ownership. The overall cycle is usually between six months and one and a half years. Timely preservation can avoid repeated procedures, and the cycle of mediation and settlement is usually shorter.
Q5: What should I do if the seller has sold the house to someone else?
If the house has been registered under the name of a third party, the claim for continued performance of the contract usually cannot be supported. Instead, the parties may terminate the contract and claim compensation for the loss of the price difference of the house. If the third party knew that the seller breached the contract but still conducted the transaction and failed to pay a reasonable consideration, the party may claim that the third party did not constitute bona fide acquisition and request to confirm the invalidity of the contract and the return of the house. After discovering clues of the house being sold to others, the parties should immediately preserve the evidence and verify the transaction details. For specific procedures, please refer to the relevant guidelines.Real estate transactions and construction projectsThis column features lawyers assessing the pros and cons of recovery and claims.
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 Henglu Law Firm about 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, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Tian Jiayan·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on current 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 you encounter disputes, please consult a practicing lawyer in a timely manner.