[Direct answer]In the Beijing area, if the landlord breaches the contract and refuses to sell the house after signing the sales contract, the buyer may legally require the landlord to bear the breach of contract liability. If the house meets the conditions for continued performance, the buyer may sue to require the landlord to continue to perform the contract and handle the transfer registration. If the buyer requests to rescind the contract, he/she may claim the return of the paid amount and apply the penalty for the deposit —— the party who receives the deposit shall return the deposit in double and may also claim damages such as the breach of contract penalty or the difference in the value of the house. If the agreed breach of contract penalty is excessively higher than the actual loss, the breaching party may request the court to reduce it. The rights protection should be carried out within the three-year statute of limitations and take preservation measures for the house as soon as possible to prevent the sale of the same house to two different buyers. For more details, please refer toReal estate sales and construction project services.

I. Problem background and typical scenarios

The transaction of second-hand houses usually takes several months from signing the contract to transferring ownership. During this period, fluctuations in housing prices may easily induce sellers to breach the contract: after signing the contract, if the housing prices rise, the landlord may demand an increase in the price or refuse to sell; the buyer may claim that the contract is invalid on the grounds that the co-owners do not agree or the spouse is unaware of it; the seller may delay or refuse to cooperate with the face-to-face negotiation, refuse to repay the loan, or refuse to transfer ownership; or even sell the same house to two different buyers. Buyers have already paid the deposit or even part of the purchase price, and some have actually renovated and moved in. Suddenly facing the seller's breach of contract, they often don't know what they can claim, how much compensation they can get, or whether they can still get the house back. In Beijing, where the transaction volume of second-hand houses is large, breach of contract disputes are mostly concentrated in the period of rapid fluctuations in housing prices. It's more advantageous to fix the evidence as early as possible. Throughout the transaction process, it's helpful to seek assistance from professionals.Beijing Henglue Law FirmProfessional support ensures that key stages are properly managed.

II. Key points of contention

The focus of the dispute lies in four aspects. Firstly, the validity of the contract: If the seller defends that the co-owner was unaware of the transaction and lacked the right to dispose of the property, it is necessary to consider whether the buyer acted in good faith and whether the price was reasonable. Secondly, whether the contract can be continued to be performed: If the house has not been sold to others and meets the conditions for transfer of ownership, it is generally supported to continue to perform the contract; if the house has been transferred to a third party, the buyer can only claim compensation. Thirdly, the scope of compensation: How to calculate and choose between the penalty for the deposit, the breach of contract penalty, the loss of the house price difference, and the interest on the funds paid. Fourthly, the defenses against breach of contract: Whether the seller's defenses of force majeure, change of circumstances, or the buyer's delay in payment are valid. Overall, buyers with clear agreements and complete evidence are more likely to gain support for their claims.

III. Professional analysis by Henglue Lawyers

Attorney Tian Jiaoyan once represented a dispute over a commercial housing sales contract, fully presenting the reasoning for determining the liquidated damages and the seller's defenses against breach of contract. On April 30, 2021, Zhang Quan signed the "Beijing City Commercial Housing Pre-sale Contract" with Beijing A Real Estate Company to purchase a house at No. 302 in a certain residential community with a total price of 6,841,972 yuan, and agreed to deliver the house before June 15, 2023. The supplementary agreement signed on the same day stipulated that if the seller delayed delivery due to its own reasons, it would be granted a 90-day grace period during which the seller would not be held liable. After the grace period expired, the seller would pay liquidated damages at a rate of 0.01% of the total price per day. However, A Company did not deliver the house until March 5, 2024, nearly nine months after the due date. A Company argued that it should be exempted from liability due to force majeure such as the pandemic, meetings, and bad weather during the construction period, and that the grace period could be cumulated with other delays. Attorney Tian Jiaoyan reviewed the contract and supplementary agreement, collected payment receipts, move-in notifications, and completion and acceptance registration materials to form a complete chain of evidence. She argued that: the contract was signed in 2021, and the pandemic had already become a common phenomenon at that time, so the developer should have foreseen it and it did not constitute force majeure; bad weather, government meetings, and exams did not necessarily lead to a full suspension of work and could have been foreseen, so the seller could not be exempted from liability; the grace period should be strictly applied according to the contract, and there was no legal basis for cumulating it; and the daily 0.01% liquidated damages standard reflected the true intention of both parties and was not illegal. The court adopted the attorney's arguments and ruled that A Company should pay 118,366.12 yuan in liquidated damages for the delayed delivery and bear the litigation costs. The adjudication logic of this case also applies to breaches of contract by second-hand house sellers: the liquidated damages should be claimed according to the contract and legal provisions, and the seller's defenses against breach of contract must have factual and contractual basis. A clearly defined liquidated damages standard will generally be supported. This case was handled by Beijing Henglu Law Firm. 田娇艳律师曾代理一起商品房买卖合同纠纷案件，完整呈现了违约金与违约抗辩的认定思路。2021年4月30日，张权与北京A房地产公司签订《北京市商品房预售合同》，购买某小区302号房屋，总价6,841,972元，约定2023年6月15日前交付；同日签订的补充协议约定，因出卖人自身原因逾期的，给予九十日宽展期，宽展期内不担责，宽展期届满后按已交房价款日万分之一支付违约金。A公司直至2024年3月5日才交付，逾期近九个月。A公司抗辩称施工期间遭遇疫情、会议、恶劣天气等不可抗力应免责，宽展期可与其他延期累加。田娇艳律师梳理合同与补充协议，收集付款凭证、入住通知、竣工验收备案资料形成完整证据链，提出：合同签订于2021年，疫情早已常态化，开发商应当预见，不构成不可抗力；恶劣天气、政府会议、考试等并非必然全面停工，可以预见，不能免责；宽展期应按约严格适用，主张累加无合同与法律依据；日万分之一的违约金标准系双方真实意思表示，不违法。法院采纳律师意见，判决A公司支付逾期交房违约金118,366.12元并承担诉讼费。本案裁判逻辑同样适用于二手房卖家违约：按合同约定与法律规定主张违约金，卖方抗辩免责需有事实与合同依据，约定明确的违约金标准一般会得到支持。本案由北京恒略律师事务所代理。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

The legal basis includes Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021) (where a party fails to perform its contractual obligations or performs them in a manner inconsistent with the contract, it shall bear such contractual liabilities as continuing to perform the contract, taking remedial measures, or compensating for losses), Article 585 (penalty clauses and their adjustment rules), Articles 586 and 587 (deposit guarantees, where the party receiving the deposit breaches the contract and causes the contractual purpose to be unattainable, it shall double refund the deposit), and Article 188 (three-year statute of limitations). Practical suggestions: When signing the contract, clarify the transfer time, penalty standards, and deposit clauses; immediately send a letter of demand and collect evidence upon discovering signs of breach of contract; apply for property preservation or objection registration as soon as possible to prevent the house from being disposed of elsewhere; choose to continue to perform the contract or terminate the contract and seek compensation based on the status of the house; and clarify the deposit, penalty, and difference in loss. If there are doubts about the design of the transaction terms, you can consult a lawyer for advice.Legal services for real estate transactions and construction projectsConsultation and review.

5. Henglu Law Firm's Reminder

The cost of a seller's breach of contract largely depends on the buyer's pre-contractual agreements and post-contractual responses. Here are three tips: First, the contract terms should be detailed, including clear provisions on the transfer milestones, the breach of contract penalty ratio, and the penalty clauses for the deposit. Verbal promises are unreliable. Second, act quickly. Breaches of contract are more common during periods of rising housing prices. If you detect any signs of a breach, send a letter and take legal action promptly, rather than waiting until the property transfer is completed before taking action. Third, calculate the costs accurately. Continued performance, double the deposit, breach of contract penalties, and losses from price differences all have their own applicable conditions. Choosing the wrong strategy may result in winning the lawsuit but not obtaining the property. For cases of malicious breach of contract or double-selling the same property, it's best to seek legal assistance as soon as possible.Beijing Henglue Law FirmThe lawyer formulates a strategy.

VI. Frequently Asked Questions

Q1: If the landlord breaches the contract and refuses to sell the property, can I request to proceed with the transfer of ownership?

It can be argued that whether the contract can be performed depends on the fulfillment conditions. If the house is still registered under the seller's name, has not been sealed up, and has not been sold to a third party, and the buyer has the qualification to purchase the house, can apply for a loan, and pay the purchase price, the court will generally support the continuation of performance and order the transfer of ownership. If the house has been sold and transferred to a bona fide third party, or it is objectively impossible to perform the contract, the buyer can only claim compensation for losses. If the buyer intends to continue performance, he/she should apply for property preservation in time to prevent the other party from transferring the house during the litigation. The outcome of the case depends on the feasibility of performance and the evidence. It is recommended to entrust a lawyer to evaluate the case and choose a strategy accordingly.

Q2: What evidence do I need to prepare for defending my rights?

The key is to prove the validity of the contract, the other party's breach of contract, and the damage suffered by oneself: the house purchase contract, the deposit receipt and payment vouchers; the reminder records (WeChat, SMS, letters), which prove that the other party explicitly refuses to perform or delays in performance; the evidence of the price difference of the rising house prices (the transaction price of the same period in the same community, the appraisal report), which is used to claim damages; the ownership of the house and registration information (property investigation), which proves that the house has not been disposed of and meets the conditions for performance; and the proof of one's own ability to perform the contract (purchase qualification, loan approval, and proof of funds). With all the evidence in place, the claim for continued performance or compensation can be implemented.

Q3: How much does it cost to hire a lawyer, and how should the litigation fees be paid?

The attorney's fees are determined through negotiation between the law firm and the client, based on the case's subject matter, complexity, and workload. Fees are typically charged as a percentage of the subject matter or in stages, with no standardized rates. For cases involving property, the contract should clearly specify the fees and payment stages, and clients may request payment in stages. Court fees are calculated based on the amount of the litigation request in accordance with the "Measures for the Payment of Litigation Fees", and are borne by the losing party. In cases of partial victories, fees are apportioned proportionally. For applications for property preservation, additional guarantees are required. Before entrusting a lawyer, it is advisable to evaluate the house price difference and the cost of protecting rights to make rational decisions.

Q4: How long does it usually take to resolve such cases?

For continuation of performance actions, the first-instance ordinary procedure lasts six months, and the summary procedure lasts three months. The time may be extended in cases involving loan repayment, removal of mortgages, and third-party objections; the second-instance procedure generally lasts three months. In practice, many cases can be completed within a few months from filing the lawsuit to executing the transfer of ownership. However, if the house is mortgaged, there are disputes among co-owners, or the seller deliberately delays the process, the time period will be significantly extended. If the parties choose to terminate the contract and claim breach of contract damages and the difference in value, the litigation period will be similar. It is recommended to apply for preservation measures concurrently during the litigation to avoid prolonged delays and potential changes in the situation.

Q5: If the landlord breaches the contract and refuses to sell, what should I do first?

There are four steps to proceed: Firstly, send a written reminder via WeChat, text messages, or a lawyer's letter to require the other party to continue performing their obligations within a reasonable timeframe and keep records; Secondly, gather evidence, including contracts, payment receipts, communication records of the other party's refusal to sell or delay, and housing registration information; Thirdly, take timely protective measures, such as applying for property preservation or registering objections against the house to prevent the sale of the same property to two different buyers or its transfer; Fourthly, initiate legal action at the appropriate time, choosing either to require continued performance or to seek compensation for breach of contract, while simultaneously calculating the deposit, liquidated damages, and the loss of the price difference. If you're unsure about the strategy, it's best to consult a lawyer for an assessment as soon as possible.

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 Lawyers 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 the purchase and sale of real estate·Attorney Li Yonghui·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current effective 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. In the event of a dispute, please consult a practicing lawyer promptly.