[Direct answer]In the Beijing area, if the developer unilaterally raises the price after the purchaser has paid the subscription fee, this constitutes a violation of the subscription agreement. According to Article 495 of the Civil Code of the People's Republic of China, a subscription letter or purchase order that stipulates the obligation to conclude a contract within a certain period in the future constitutes a preliminary contract. If a party fails to fulfill the obligation to conclude a contract stipulated in the preliminary contract, it shall bear the liability for breach of contract. If the subscription letter has already locked in the house number and price, the developer shall not unilaterally raise the price. If the subscription fee paid is a "deposit", the penalty for the deposit (the developer shall return twice the amount) shall apply according to Article 587; if it is an "advance payment", the purchaser may request a refund. Whether the purchaser can obtain compensation depends on the nature of the subscription letter and the purpose of the payment. It is recommended to keep the subscription letter, payment receipts, and the notice of price increase, and to negotiate with the developer first. If no agreement can be reached, the purchaser may file a lawsuit. For more details, please refer to the relevant legal provisions.Legal services for real estate transactions and construction projects.
1. Problem background and typical scenarios
Subscription fees disputes often occur during periods of rising housing prices or when developers face financial pressure. Typical scenarios include: buyers paying tens of thousands of yuan as "subscription fees" to secure housing units, only to be told by developers on the eve of signing the contract that prices will be raised or discounts will be cancelled, with the subscription fees not refunded if the buyer refuses to accept the price increase; subscription agreements that label the payment as a "deposit" but fail to specify the consequences of breaching the contract; and sales staff making verbal price commitments while the written subscription agreements state different terms. Many buyers are forced to accept the price increase for fear of losing their subscription fees. The core of such disputes lies in whether the subscription agreement constitutes a preliminary contract, whether the payment is a deposit or a booking fee, and whether the developer's price increase constitutes a breach of contract. The determination of the nature of the relevant contract can be based on the following factors:Business and contract dispute services for enterprisesAnalysis.
II. Key points of dispute
There are three key points of contention. Firstly, the nature of the subscription agreement: whether it meets the requirements of a reservation contract (specifying the house number, price, and signing deadline) determines whether the developer is obligated to sign the contract at the original price. Secondly, the purpose of the payment: if it is labeled as a "deposit", the deposit penalty clause applies; if it is labeled as a "booking fee", "good faith deposit", or "registration fee", it can generally be refunded, and the legal consequences of the two are vastly different. Thirdly, the defense of price increases: developers often cite "the price has not been finalized" or "policy adjustments" as reasons. It is necessary to review whether the subscription agreement already contains clear price provisions. For issues involving the validity of standard contract terms, reference can be made to relevant legal provisions.Special services and other case servicesHandle it.
III. Professional analysis by Hengluo Law Firm
Based on practical observations in handling disputes over the purchase of commercial housing, the key to winning or losing lies in "what is written in the purchase agreement and how the money is written". According to Articles 495 and 587 of the Civil Code, the pre-contract is binding on both parties. If the developer unilaterally raises the price after locking in the price, it constitutes a breach of contract; if the purchase deposit is clearly defined as a deposit and the developer fails to conclude the main contract as agreed, the buyer can claim double repayment. In practice, a common trap is that developers write the payment as "goodwill deposit" or "deposit" to evade the penalty for breach of contract. In this case, although the buyer cannot claim double repayment, he can still demand repayment of the principal and claim the loss of trust benefits caused by the developer's breach of contract. Hengluo Lawyers usually suggest first checking the original text of the purchase agreement and the transfer notes, and then deciding whether to use breach of contract litigation or administrative complaints to apply pressure. When it comes to recovering funds, it can be followed up.Creditor-debtor relations and enforcement case services.
IV. Practical suggestions and legal basis
The legal basis is Article 495 (Contract of Reservation), Article 509 (Full Performance), Article 577 (Liability for Breach of Contract), and Article 587 (Deposit Penalty) of the Civil Code of the People's Republic of China (effective January 1, 2021); and the provisions on subscription agreements in 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". Practical suggestions: When making payments, require that the purpose and nature of the payment be specified, and prioritize obtaining a "deposit" to bind the developer; specify the house number, unit price, total price, and signing deadline in the subscription agreement; retain audio recordings and chat logs of sales promises; if prices rise, first send a letter demanding to sign the contract at the original price or request a double refund; if no agreement can be reached, promptly report the matter to the housing and urban-rural development department or market supervision department and file a lawsuit. For clause review, it may be combined with other relevant provisions.Real estate sales and construction project servicesReview and approve.
5. Hengluo Law Firm's Reminder
During the subscription phase, it's easiest to fall into traps related to "money matters". Before making the payment, you must check whether the receipt and the subscription agreement specify a "deposit" or an "advance payment". The difference between the two words can lead to drastically different consequences. Before signing the contract, don't easily believe verbal promises of low prices. All discounts and prices should be based on the written subscription agreement. If the developer suddenly raises the price, don't panic and immediately pay the difference. First, secure the subscription agreement, transfer receipts, and the notice of price increase, and evaluate whether it constitutes a breach of contract. Don't passively accept the price increase just to avoid losing the subscription deposit. Specific rights should be determined based on the written agreement. If you need professional support, you can seek assistance from a legal professional.Special services and other case-related servicesDevelop a response plan.
VI. Frequently Asked Questions
Q1: If the developer raises the price after I've paid the subscription fee, can I successfully protect my rights?
The success of protecting one's rights depends on whether the subscription agreement locks in the price and the nature of the payment. If the subscription agreement specifies the specific room number, unit price, and total price, and stipulates the signing deadline, the developer's price increase constitutes a breach of contract, and the buyer can request to sign the contract at the original price or bear the liability for breach of contract; if the subscription deposit is a "deposit", the buyer can claim a double refund. If the subscription agreement is only indicative and does not specify the price, its binding force is weaker, and it becomes more difficult to protect one's rights. It is recommended to first check the written agreement and then determine whether the developer's price increase is justified, rather than accepting the price increase based on emotions. It is also necessary to maintain rationality towards unrealistic promises of "full refund".
Q2: If the developer raises prices and I want to protect my rights, what evidence do I need to prepare?
The core evidence includes: the original subscription or purchase agreement (to prove the room number, price, and contractual agreements); payment vouchers and receipts (to prove the amount of the payment and whether it is a deposit or advance payment); price increase notifications or communication records issued by the developer (to prove the unilateral price increase); audio recordings of sales staff's promises or WeChat chat records (to corroborate the original price agreement); and materials showing the housing prices or publicized prices during the same period. The organization of the evidence revolves around "the establishment of a reservation - the price has been locked - the developer's breach of contract and price increase - the loss". The more complete the materials are, the more accurately the claimant can demand performance at the original price or a refund, and avoid being misled by the argument that "the price has not been determined".
Q3: How much will it cost in attorney's fees and litigation expenses to sue the developer for breaching the contract by raising prices?
The litigation fees are calculated according to the "Measures for the Payment of Litigation Fees", based on the amount of the litigation request (usually the subscription fee and the claimed compensation amount) and accumulated in stages. The losing party shall bear the fees. The attorney's fees are determined according to the complexity of the case and the amount of the subject matter, and are charged on a per-case, hourly, or percentage basis of the subject matter. The specific fees are subject to the contract of entrustment, and there is no uniform standard. Since the amount of the subscription fee is relatively small, it is recommended to first calculate the litigation benefits and costs, and for the obviously uncontested parts, low-cost solutions such as complaints and negotiations can be prioritized. For cases involving multiple households, it is possible to strive for collective entrustment to share the fees and keep the cost of protecting rights within a reasonable range.
Q4: How long does it usually take for such disputes to be resolved?
The first-instance ordinary procedure generally concludes within six months, and the summary procedure within three months; subscription deposit disputes typically involve smaller amounts and clearer facts, so the summary procedure is more suitable, with a shorter timeframe. If the developer appeals, the second-instance procedure generally takes three months. After the judgment takes effect, the enforcement phase begins, and the time to recover the payment depends on the other party's financial situation. Overall, it often takes several months to half a year from filing the lawsuit to recovering the payment. It is recommended to apply for property preservation to freeze the developer's account during the litigation process, which can not only accelerate the recovery of payments but also increase the possibility of mediation, avoiding asset transfers due to delays.
Q5: If I pay the subscription fee and the price goes up, what should I do first?
Here are the four steps suggested: 1. Immediately make copies or take photos of the purchase agreement, receipts, and all communication records to confirm whether the payment item is labeled as a "deposit" or a "reservation fee". 2. Organize audio recordings of sales promises, WeChat messages, and publicly displayed prices to establish the fact that the developer has raised prices. 3. Send a written letter to the developer, demanding that the contract be signed at the original purchase price or that the developer double refund the deposit penalty, and retain proof of delivery. 4. If negotiations fail, file a complaint with the housing and urban-rural development authority and the market supervision department, and prepare to sue the developer. Throughout the process, avoid verbally accepting price increases and, if necessary, hire a lawyer to provide legal advice to apply pressure.
The above answer is based on the judicial practice in Beijing. The adjudicative opinions in other provinces or cities may vary. For specific cases, please refer to the local rules and evidence situation.
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·Beijing Hengluo Law Firm
Disclaimer: This article is compiled based on the 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. If a dispute arises, please consult a practicing lawyer in a timely manner.