[Direct answer]In the Beijing area, whether a developer can terminate a contract if it fails to deliver the property on time depends on the contractual provisions and the notice procedure. According to Article 562 of the Civil Code of the People's Republic of China (effective January 1, 2021), the parties may agree on the grounds for terminating the contract. If such grounds arise, the right to terminate the contract may be exercised by the party entitled to terminate the contract. In practice, many commercial housing sales contracts stipulate that if the developer fails to deliver the property on time for more than 60 days, 90 days, or 120 days, the buyer has the right to terminate the contract. If there is no such stipulation, according to Article 563, if the seller delays in performing the main obligation and fails to perform within a reasonable time after being reminded, the buyer may terminate the contract. The right to terminate the contract shall be exercised within the agreed or statutory time limit. If there is no such stipulation, the right to terminate the contract shall be extinguished if it is not exercised within one year from the date when the buyer knows of the grounds for termination. For housing purchase disputes, please refer to the relevant provisions.Real estate transactions and construction projectsColumn.

I. Problem background and typical scenarios

These types of issues often arise in several situations: First, the contract clearly stipulates that if the developer fails to deliver the property on time for a certain number of days, the buyer can terminate the contract, but the developer defends against this by citing factors such as the pandemic and government policies. Second, if the delivery of the property is indefinitely delayed and the project is suspended, the buyer wants to withdraw from the contract but is worried about the difficulty of recovering the down payment. Third, the developer refuses to assume responsibility for the delay on the grounds that the property meets the delivery conditions but has quality defects. Fourth, if the mortgage loan is not approved, the payment and delivery of the property become intertwined. Fifth, if the buyer misses the deadline for exercising the right of rescission, they can only claim breach of contract damages instead. When handling similar cases in the Beijing area, the court first reviews the contractual conditions for rescission and the grace period provisions, and then determines whether the right of rescission exists and whether it was exercised within the time limit.

II. Key points of dispute

Focus One: Whether the agreed upon conditions for contract termination have been met. If the contract stipulates that the contract can be terminated after exceeding a certain number of days of delay, the determination shall be based on the contract provisions. In practice, it is common to set the threshold at 120 days. Focus Two: The application of the grace period clause. The grace period granted in the supplementary agreement should be strictly implemented according to the contract. If the house is still not delivered after the grace period expires, the developer should bear responsibility. It is usually unfounded for developers to claim that the grace period should be cumulated with other extensions. Focus Three: Whether the defense of force majeure is valid. If the epidemic situation had become normal at the time of contract signing and the developer should have foreseen it, it generally does not constitute force majeure. Focus Four: The exercise period and notice procedure for the right of termination. The right of termination that is not exercised within the time limit shall be extinguished. Focus Five: The scope of return after contract termination, including the return of the down payment, the principal and interest of the repaid loan, and related fees, as well as the determination of breach of contract liability. Focus Six: The standard of liquidated damages, which shall be paid according to the contract provisions. If the agreed amount is too high or too low, the parties may request adjustment. The specific standards shall be determined by 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, we can observe the exercise path of the right to rescind the contract due to delayed delivery of the house. Li * and Jiang * signed a commercial housing sales contract with * Cultural Tourism Development Co., Ltd. on September 27, 2020. They paid a down payment of 403,638 yuan and 80,000 yuan in succession, and the remaining 310,000 yuan was handled by mortgage loans. The developer failed to deliver the house on the agreed date and exceeded the 120-day deadline. The two parties entrusted our firm's lawyers to sue, demanding the rescission of the contract and the return of the purchase price. The lawyer pointed out that the contract and its annexes were the true intention of both parties and were legally valid. The buyer had paid the down payment according to the contract, but the developer failed to deliver the agreed house on time, so the purpose of the contract could no longer be achieved, and the contract should be rescinded and the down payment returned. There was no breach of contract regarding the payment period of the remaining purchase price. The court adopted the lawyer's opinion and ruled that the contract should be rescinded, and the developer should return the purchase price of 483,638 yuan within ten days. The buyer should cooperate in handling the registration and mortgage cancellation procedures. In another similar case, the developer delayed the delivery of the house for nearly nine months, claiming force majeure exemption due to the pandemic, bad weather, and government meetings. The lawyer pointed out that the contract was signed in 2021, and the pandemic had long become a normal situation, which should be foreseeable. The 90-day grace period stipulated in the supplementary agreement should be strictly applied and not cumulative. The court ultimately ordered the developer to pay a daily default penalty of 118,366.12 yuan. The two cases show that the contract can be rescinded once the rescission conditions are met, and the developer should bear responsibility once the grace period expires. This case was handled by Beijing Henglu Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: 1. Retrieve the contract and supplementary agreement to verify the agreed delivery date, grace period, and the clause stating "the right to rescind the contract if the delay exceeds a certain number of days," to determine whether the conditions for rescission have been met. 2. After the delay, first send a written notice of default with proof of delivery, to secure evidence for rescission and claims. 3. The right to rescind has a time limit. If no deadline is specified, the right will be extinguished within one year after becoming aware of the grounds for rescission. Decisions must be made promptly. 4. When asserting rescission, clearly specify the scope of refunds (e.g., down payment, repaid loan principal and interest, maintenance fund), and demand breach-of-contract compensation. 5. If not rescinding immediately, claim breach-of-contract penalties according to the agreed standards for delayed delivery. Legal basis: - Article 562 of the Civil Code of the People's Republic of China governs contractual rescission. - Article 563 stipulates statutory rescission for delayed performance after a reasonable grace period. - Article 564 defines the time limit for exercising the right to rescind. - Article 577 outlines breach-of-contract liability. - 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 (implemented on June 1, 2003 and amended on December 29, 2020) also contains specific provisions on rescission and refunds in commercial housing sales contracts. - For cases involving mortgage loans, refer to relevant guidelines.\nCross-border financeColumn.

5. Henglu Law Firm's Reminder

Risk Warning: First, terminating the contract does not mean automatically getting back the money. It will be equally difficult to enforce the judgment when the developer's financial situation deteriorates, so it is advisable to sue and apply for property preservation as early as possible. Second, defenses such as the grace period and the pandemic may not always be successful. By checking the signing time and the contractual text item by item, you can identify them. Third, if the loan is not approved or the balance is not paid, the developer may counter-sue the buyer for breach of contract. When the payment deadline is not clearly defined, the allocation of responsibilities needs to be analyzed on a case-by-case basis. Fourth, quality defects do not necessarily exempt the developer from the responsibility of late delivery. Delivery that does not meet the contractual conditions will still be treated as late delivery. It is recommended to fix the evidence of urging and breach of contract as early as possible and refer to it when necessary.Beijing Henglue Law FirmOn the official website, similar columns are evaluated by professional lawyers to determine the legal path to follow.

VI. Frequently Asked Questions

Q1: How many days after the due date for handover can I request a refund for the apartment?

First, let's look at the contract provisions. Commercial housing sales contracts typically stipulate that if the developer fails to deliver the property within 60, 90, or 120 days after the agreed date, the buyer has the right to rescind the contract and exercise this right once the relevant conditions are met. In the cases handled by our firm, there is an example where the developer failed to deliver the property within 120 days after the agreed date, and the court ruled to rescind the contract and refund the purchase price of over 480,000 yuan to the buyer. If there are no specific provisions, according to Article 563 of the Civil Code of the People's Republic of China, if the developer still fails to deliver the property within a reasonable period after the buyer's reminder, the buyer may rescind the contract. Whether the conditions are met should be judged comprehensively based on the grace period and the reminder situation.

Q2: What evidence do I need to prepare if I want to check out early?

The following should be prepared: the sales contract for commercial housing and the supplementary agreement, which specify the delivery deadline, the grace period, and the termination clause; payment receipts, including the transfer record of the down payment and the loan disbursement record; the reminder letter and mailing receipt, which prove that the reminder has been fulfilled; the developer's notice of delay and force majeure declaration; evidence of the current state of the house, such as the non-delivery certificate and photos of the project being halted; and materials proving the losses, including the rental losses and the detailed repayment of the loan principal and interest. The more complete the evidence is, the stronger the claim for termination and return will be.

Q3: How much money can I get back when I check out?

For those who terminate the contract, the developer shall return the purchase price already paid, including the down payment and the principal and interest of the loan already repaid. The public maintenance fund, stamp duty and other fees already paid may be claimed together. If losses are caused, the party may also claim the breach of contract penalty or compensation according to the contract. In the cases handled by our firm, the court ruled that the purchase price of 483,638 yuan should be returned; in another case, the developer was ordered to pay a breach of contract penalty of 118,366.12 yuan per day. The amount of each refund shall be subject to the scope determined by the judgment or mediation. It is advisable to sue and apply for preservation as soon as possible.

Q4: How long does it usually take to settle a check-out dispute?

Disputes over the sale and purchase of commercial housing shall be subject to the civil first-instance litigation procedure. The ordinary procedure generally concludes within six months, and the summary procedure concludes within three months. If the other party appeals, the second-instance litigation shall be concluded within three months. If the developer fails to perform after the judgment takes effect, it is necessary to apply for compulsory execution, and the overall cycle is related to the developer's financial status. It is advisable to apply for property preservation simultaneously when claiming termination, to prevent the transfer of the house payment. Matters in the enforcement stage can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

Q5: How to claim compensation if you don't want to withdraw from the contract when the developer delays the handover of the house?

You can claim the breach of contract penalty for late delivery of the house, with the standard being subject to the contract agreement. Commonly, the penalty is paid at a rate of 0.01% to 0.05% of the total paid housing price per day; if the developer claims force majeure such as the pandemic and weather, if it should have been foreseeable at the time of signing the contract, it generally cannot be exempted from liability. Note that there is an agreement that the developer is not responsible during the grace period. The part of the house that has not been delivered after the grace period expires can be subject to the breach of contract penalty. Before making a claim, you should send a written notice to the developer and keep the evidence. If necessary, you can entrust a lawyer to send a letter or file a lawsuit. For reference, you can refer to the relevant provisions of the "House Purchase Contract" and other related laws and regulations.Property sales and construction projectsColumn.

The above Q&A is mainly based on judicial practices in Beijing. There may be differences in the adjudication guidelines in other regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 Xue Suhua·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.