[Direct answer]In the Beijing area, during the delay in handover of the house, if the buyer rents another house because they cannot move in, they can, in principle, request the developer to compensate them for the rent. However, the compensation path depends on the contractual provisions and the evidence provided. If the contract stipulates a penalty for late handover, the buyer usually first claims the penalty in accordance with the contract. If the penalty is insufficient to cover the actual rental loss, they can claim compensation for the difference in accordance with Article 584 of the Civil Code of the People's Republic of China. They need to prove the causal relationship between the rental expenditure and the delay, as well as the reasonable amount of the compensation. Developers often raise defenses such as force majeure and the pandemic, but whether these defenses are valid depends on the time of contract signing and the predictability of the situation. It is recommended to keep the contract, the handover notice, the rental contract, and the rental receipts. First, attempt to negotiate with the developer, and if no agreement is reached, then sue them. 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

The delay in handing over the house results in buyers having to "pay the rent while not receiving the house", which is a common pain point in pre-sale housing transactions. Typical scenarios include: the contract stipulates that the house should be handed over on a certain date, but the developer delays for several months or even longer, forcing buyers to rent an apartment temporarily; the original house has been sold or the lease has expired, leaving them with no place to live due to the delay in handing over the house; and developers refuse to compensate for the rental losses by citing reasons such as the pandemic and environmental protection controls. Many buyers mistakenly believe that "since the contract only stipulates a breach of contract penalty, they won't be able to recover the rent", or worry that renting elsewhere might be considered "exaggerating the losses". When handling similar cases in Beijing, the court usually reviews the relationship between the breach of contract penalty and the actual losses, as well as the necessity of rent payments. The determination of relevant losses can be combined with the following factors:Business and contract dispute resolution services for enterprisesAnalysis.

II. Key points of contention

There are three main points of contention. Firstly, the choice of compensation path: whether to claim solely based on the contractual penalty clause, or to claim the actual rental losses beyond the insufficient penalty amount. The two can be pursued concurrently. Secondly, the causality and reasonableness: whether it is necessary to rent elsewhere, whether the rental standard is reasonable, and whether it corresponds to the delay period, which are the key factors for the court to support or reject the claim. Thirdly, the validity of the defense: the developer's claim of force majeure such as the pandemic needs to be examined whether it has become a normal situation at the time of contract signing and whether it has truly led to a suspension of work. For losses involving appraisal, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesAdvance.

III. Professional analysis by Hengluo Law Firm

The following explains the adjudication logic based on a case of breach of contract for delayed delivery of a house handled by our firm. On April 30, 2021, the buyer, Zhang Quan, and Beijing A Real Estate Development Co., Ltd. signed the "Beijing Commercial Housing Pre-sale Contract" to purchase House 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 granted a 90-day grace period. After the expiration of the grace period, the buyer would pay the breach of contract penalty at a rate of one ten-thousandth of the total price per day. However, A Company did not deliver the house until March 5, 2024, a delay of nearly nine months. Zhang Quan entrusted Beijing Henglu Law Firm to handle the case.Tian JiayanThe lawyer filed a lawsuit demanding the payment of 118,366.12 yuan in breach of contract penalties from September 14, 2023 to March 5, 2024. The main disputes between the two parties focused on whether the COVID-19 pandemic constituted a force majeure, whether the grace period could be cumulated with other extensions, and whether the standard of breach of contract penalties was too high. After trial, the court held that the contract was signed in 2021, when the pandemic had become a normal situation, and the developer could have foreseen it, so it did not constitute a force majeure; the grace period should be strictly applied in accordance with the contract; and the daily penalty of one percent was a true expression of the parties' intentions and was not illegal. Ultimately, the court ruled that Company A should pay the full breach of contract penalties of 118,366.12 yuan and bear the litigation costs. 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 authority) acts as the agent. This case indicates that the contractual penalty stipulated in the event of a delay in delivery of the house can be fully supported, and the compensation obtained by the buyer can be used to offset the expenses of renting a temporary home; if the contractual penalty is significantly lower than the actual loss of rent, the buyer can still claim the difference separately.

IV. Practical suggestions and legal basis

The legal basis is Article 577 (Liability for Breach of Contract), Article 584 (Compensation for Losses Due to Breach of Contract, Including Benefits Obtainable after Performance but Not Exceeding the Losses Foreseen or Should Have Been Foreseen at the Time of Contract Formation), and Article 585 (Agreement and Adjustment of Liquidated Damages) of the Civil Code of the People's Republic of China (effective January 1, 2021); as well as the provisions on liability for breach of contract due to delayed delivery set forth 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 (effective June 1, 2003 and amended on December 23, 2020). Practical advice: When signing the contract, pay attention to the calculation standard for liquidated damages for delayed delivery. If the amount is too low, strive to increase it or agree on actual loss compensation. After the delay occurs, send a letter of reminder in a timely manner and keep the delivery notice. When renting alternative accommodation, adhere to the standards of necessity and reasonableness, and retain the contract and receipts. If the liquidated damages are insufficient, claim the rental difference simultaneously. Regarding the organization of evidence, it can be combined with the following:Real estate sales and construction project servicesDevelop a plan.

5. Henglu Law Firm's Reminder

Whether it's possible to recover the unpaid rent depends on two key factors: "how the contract is written and how to prove the losses". First, check whether the penalty for late payment of rent is sufficient to cover the rent. If the agreed penalty is too low, there should be room to claim the actual loss difference separately; when renting elsewhere, it's important to choose a reasonable location and price to avoid being deemed as inappropriate expenditure. For developers' defenses such as "the pandemic is a force majeure", it's necessary to judge whether it's truly foreseeable based on the time of contract signing, and never assume it's valid by default. All contracts, notifications, and rent receipts should be systematically preserved. Failure to do so within the statute of limitations will result in the loss of the right to win the case. If necessary, professional evaluation can be sought for assistance.Special services and other case servicesIntervene.

VI. Frequently Asked Questions

Q1: Can the developer cover the rental fees during the delay in handing over the house?

In principle, this is possible, but there are two different approaches. If the contract stipulates a penalty for late delivery of the house, the buyer can first claim the compensation according to the contract, and the compensation already received can be considered as compensation for losses including rental expenses. If the penalty stipulated in the contract is significantly lower than the actual rental loss, the buyer can claim compensation for the difference according to Article 584 of the Civil Code, provided that the necessity of renting and the reasonableness of the amount can be proven. Developers often use force majeure and the pandemic as defenses, but whether these defenses are valid depends on the time of contract signing and the predictability of the event, and they are not generally exempt from liability. Whether the claim will be supported depends on the contract provisions, the evidence of actual losses, and the validity of the defenses, rather than a simple promise of the outcome. It is recommended to rationally evaluate the case based on the specific contract provisions.

Q2: To claim for the loss of rental fees, what evidence do I need to prepare?

Key evidence includes: the commercial housing sales contract and supplementary agreement (to prove the delivery deadline and the agreed penalty for breach of contract), the developer's notice or announcement of late delivery (to prove the fact and duration of the delay), the separately signed rental contract and rental payment receipts (to prove the actual expenses), the original housing sale or expiration certificate (to prove the necessity of renting), and the communication and reminder records. The organization of evidence revolves around four points: "establishment of the delay - necessity of renting - reasonableness of expenses - corresponding to the delay period". The rental standard should refer to the reasonable level in the same area. Excessively high rents may not be supported. The more complete the materials are, the more conducive it is to claim the full amount of compensation.

Q3: How much will it cost in attorney's fees and litigation expenses to sue for rent or breach of contract?

The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Costs", based on the amount of the litigation request (the breach of contract penalty or the rental difference). The losing party shall bear the fees, and the party who partially wins and partially loses shall share them proportionally. The attorney's fees are related to the complexity of the case, the amount of the claim, and the attorney's qualifications. They can be calculated on a per-case, hourly, or percentage basis of the amount of the claim, subject to the terms of the contract. There is no unified government pricing for these fees. It is recommended to calculate the amount that can be claimed before suing, compare it with the attorney's fees and litigation costs, and assess the cost-benefit ratio of the dispute. For disputes with limited value, it is advisable to prioritize negotiation or complaint resolution to avoid incurring excessive costs for small differences in amounts.

Q4: How long does it usually take to get a result for a claim for delayed handover of a property?

The first-instance ordinary procedure usually concludes within six months, and the summary procedure within three months; cases with clear facts of delayed delivery and explicit contracts are often subject to the summary procedure, with a shorter timeframe. If the developer appeals, the second-instance procedure usually takes three months. After the judgment takes effect, if the other party refuses to perform, it is necessary to apply for compulsory enforcement. Overall, it often takes several months to a year from filing the case to recovering the money. It is recommended to apply for property preservation in the litigation, seize the developer's accounts or unsold assets, which can not only accelerate the recovery of the money but also increase the possibility of mediation, shortening the actual time of protecting rights.

Q5: If I encounter a delay in the handover of the house, what should I do first?

There are four steps to follow: First, check the provisions in the contract and supplementary agreement regarding the delivery deadline, grace period, and breach of contract penalties to determine whether the developer has indeed exceeded the deadline; Second, keep the delivery notices, move-in reminders, and any extension explanations issued by the developer to fix the fact of the extension; Third, if it is necessary to rent a temporary home, choose a reasonable price and sign a contract, keeping the receipts as evidence for claiming the rental difference later; Fourth, first send a letter demanding payment of the breach of contract penalties or compensation for rental losses, and if no agreement is reached, file a lawsuit within the statute of limitations. Throughout the process, avoid tacitly accepting the "force majeure" argument, and if necessary, hire a lawyer to evaluate and intervene in the negotiations.

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 Hengluo Law Firm for 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 Tian Jiayan·Beijing Henglu Law Firm

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