[Direct answer]It's possible to withdraw from the contract, but there are conditions. The specific determinations made by the developer regarding the houses and related facilities within the scope of the development plan, as well as the promotional commitments that have a significant impact on the conclusion of the contract and the determination of the price, even if they are not written into the contract, are also considered as the content of the contract. If there are serious discrepancies in reality, the buyer may claim to rescind the contract and return the paid purchase price on the grounds of breach of contract; if it constitutes fraud, according to Article 148 of the Civil Code of the People's Republic of China (effective from January 1, 2021), the buyer may request to rescind the contract. The right of rescission shall be exercised within one year from the date when the buyer knows the grounds for rescission. The key is to fix the promotional evidence such as brochures, advertisements, and communication records, and to claim in writing as soon as possible. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

I. Problem Background and Typical Scenarios

"Before buying, they said it was a school district house, but after the handover, the school district was gone"; "The promised clubhouse, greening, and floor height were all reduced" — in the sale of commercial housing, the discrepancy between the sales brochures, sandbox models, floor plans, and verbal promises made by sales consultants and the actual delivery situation is a major source of disputes over the return of the deposit. Typical scenarios include: the unrealized subway, school, and supermarket facilities in the planning; the discrepancy between the advertised human-vehicle separation and greening rate and the actual situation; the reduction of floor height, frontage, and decoration standards; and disputes over descriptions such as "adjacent to the park" and "overlooking the river view". Such disputes, along with delays in delivery and quality defects, fall under the category of disputes over the sale of commercial housing contracts, and the handling approach can be referred to for reference.Legal services for real estate transactions and construction projects.

II. Key points of contention

The focus of the dispute usually lies in four aspects. Firstly, the nature of the promotional content: Commercial advertisements are generally considered as invitations to make offers. Only those specific statements and promises made about the housing and related facilities within the development plan, which have a significant impact on the conclusion of the contract and the determination of the price, are regarded as part of the contract. Secondly, the determination of fraud: It requires that the promotional content be false, sufficient to mislead buyers into signing the contract, and the seller knew or should have known that the promotion was untrue, which constitutes fraud. Thirdly, the path to rescind the contract: Claiming that the promotional content is considered part of the contract and breaching the contract, or claiming that the contract can be rescinded due to fraud, both of which have different evidentiary focuses and time limits. Fourthly, the scope of losses: Whether the refund of paid amounts, stamp duty and interest, decoration investments, and losses in housing price differences can be supported depends on the evidence and the determination of fault. In the judicial practice of Beijing courts, the courts pay close attention to the form and acquisition time of promotional evidence.

III. Professional analysis by Henglue Lawyers

A dispute over a pre-sale contract for commercial housing represented by Attorney Tian Jiaoyan demonstrated the importance of evidence chains in protecting the rights of buyers against developers' breaches of contract. On April 30, 2021, Zhang Quan signed a "Beijing City Commercial Housing Pre-sale Contract" with Beijing A Real Estate Company to purchase Unit 302 in a certain residential complex, with a floor area of 99.41 square meters and a total price of 6,841,972 yuan. The contract stipulated that the property would be delivered by June 15, 2023. On the same day, a supplementary agreement was signed, which granted the developer a 90-day grace period for delays due to force majeure such as the pandemic, meetings, severe weather, and examinations. After the grace period expired, the developer would pay a penalty of 0.01% of the total price per day starting from the 91st day after the original delivery deadline. Attorney Tian Jiaoyan collected payment receipts, move-in notifications, and construction completion and acceptance records to form a complete evidence chain. She argued that the contract was signed in 2021, and the pandemic had already become a common occurrence by then, so the developer should have foreseen the risks and the delays did not constitute force majeure. Severe weather, government meetings, and examinations did not necessarily lead to a full-scale shutdown and could not be used as excuses. The grace period should be strictly applied as agreed, and there was no legal basis for cumulative extensions. The 0.01% daily penalty was a genuine expression of the parties' intent and was not illegal. The court accepted these arguments and ordered A Company to pay 118,366.12 yuan in penalties from September 14, 2023 to March 5, 2024, as well as the litigation fees. Although this case involved a dispute over delayed delivery, it shared the same adjudication logic as the false advertising and withdrawal cases: developers cannot evade responsibility for specific promises made during contract negotiation and price determination simply by failing to include them in the contract. The success of buyers' rights protection ultimately depends on whether the contract text and promotional evidence can form a complete evidence chain. This case was handled by Beijing Henglu Law Firm.Tian JiayanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 148 (fraud may be revoked) of the Civil Code of the People's Republic of China (effective January 1, 2021), Article 152 (one-year revocation period), Article 157 (return of property, compensation for damages, and compensation for losses after revocation), and Articles 563 and 566 (contract termination and consequences); Article 3 of 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 (promulgated as Law Interpretation [2003] No. 7, amended in December 2020), which stipulates that sales advertisements and promotional materials are considered part of the contract; and the Advertising Law of the People's Republic of China (amended on April 29, 2021), which regulates false advertising. Action list: 1. Before signing the contract, compare the sales brochure, sand table, advertisements, and contract annexes, and incorporate the commitments and requirements that influence decision-making into the contract. 2. Save the original sales brochure, screenshots of advertisement pages, communication records with sales consultants, and images of model units, noting the acquisition date. 3. Upon receiving the property, verify each item of the promotional materials and raise objections in writing if any discrepancies are found. 4. First, negotiate with the developer. If no agreement is reached, file a lawsuit within the one-year revocation period or three-year statute of limitations. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

5. Henglue Law Firm's Reminder

The greatest risks of false advertising in the process of check-out are the loss of evidence and the passage of time: after the brochures are updated, the advertisements are taken down, and the sales staff leave, the advertising content is often difficult to restore; the right to revoke the contract due to fraud expires within one year from the date when the revocation reason is known or should be known. Developers often defend themselves by saying that "the advertisement is an invitation to make an offer" and "the description is an artistic exaggeration". Whether this defense can be overturned depends on whether the advertisement is specific and has a significant impact on the price determination. It is recommended to record the whole process of house inspection with video, send written objections and keep the relevant evidence. When handling similar cases in Beijing, it is recommended to bring the contract and advertising evidence as soon as possible and entrust a lawyer to handle the case.Beijing Henglu Law FirmProfessional lawyers assess the checkout path.

VI. Frequently Asked Questions

Q1: If the developer makes false claims, can we get support if we request to withdraw from the purchase agreement?

It depends on the content of the advertisement and the evidence. If the developer's statements and promises about the houses and related facilities within the scope of the development plan are specific and have a significant impact on the conclusion of the contract and the determination of the price, they shall be deemed as part of the contract. If the actual situation is seriously inconsistent with the content of the advertisement, the buyer may terminate the contract and claim to withdraw from the purchase; if the content of the advertisement constitutes fraud, the buyer may request to rescind the contract in accordance with Article 148 of the Civil Code. If it is just a general and exaggerated statement that does not have a significant impact on the buyer's decision to purchase, the claim to withdraw from the purchase may not be supported. The conclusion of the case shall be based on the evidence and the judgment, and no lawyer can unilaterally guarantee victory or defeat.

Q2: If you want to claim a refund due to false advertising, what evidence do you need to prepare?

The core materials can be divided into four categories: 1. Propaganda evidence, including brochures, floor plans, sandbox models, and mock-up room images, screenshots of advertising pages, and promotional videos, with the acquisition time and channels noted. 2. Contract and payment evidence, including pre-sale contracts, supplementary agreements, invoices, and bank transaction records. 3. Communication records, such as WeChat messages, text messages, and audio recordings with property consultants, with a focus on preserving promises that influenced decision-making. 4. Non-compliance evidence, including handover inspection records, images, and planning publicity documents. The more complete the evidence is, the more solid the determination of "deemed as contract content" and fraud will be.

Q3: How much does it cost to sue for a false advertising-related check-out dispute?

The litigation fees are paid in stages based on the amount of the litigation request. The subject of the lawsuit for refunding the purchase price is usually large, and the fees will be correspondingly higher. The losing party will bear the fees, and the party who partially wins the case will share the fees proportionally. The fees charged for cases settled through simplified procedures or mediation will be halved. For applications for property preservation, additional preservation fees will be charged. The attorney's fees are determined through negotiation between the law firm and the client. They are usually charged on a per-case basis or as a percentage of the subject amount, and there is no unified government pricing. If the expectation of returning the house is clear and the evidence is complete, it is also possible to try to negotiate first, which will reduce the cost.

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

The duration of the process varies depending on the case. If negotiations with the developer proceed smoothly, it may take just a few weeks; for litigation, the first-instance ordinary procedure typically concludes within six months, and the summary procedure within three months. However, if the case involves calculating the loss of housing price differences or appraising the residual value of decorations, the appraisal period will not be included in the time limit for trial, and the entire process may span multiple years. It is particularly important to note that the right to rescind a contract due to fraud expires within one year from the date the party knows or should have known about the grounds for rescission. Therefore, if you discover false advertising, you should initiate legal proceedings as soon as possible to avoid missing the statute of limitations.

Q5: What's the first step to take after discovering false advertising?

There are four steps to proceed: Firstly, systematically fix the evidence of the advertisement, such as brochures, advertisements, sandbox images, and communication records, and take screenshots and back them up in time; Secondly, compare the contract with the planning documents, and list the differences between the advertisement and the reality item by item, as well as their impact on the price and decision-making; Thirdly, raise objections to the developer in writing, keep the delivery receipt, and negotiate the refund or compensation plan at the same time; Fourthly, if the negotiation fails, file a lawsuit within the one-year exclusionary period, and prepare the evaluation basis in advance for the losses of decoration and price difference. If you are not sure about the process, consult a professional lawyer as soon as possible.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant 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 publicly available adjudication rules, and is provided 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.