[Direct answer]If the seller breaches the contract and refuses to sell the house, the buyer may, in accordance with Article 577 of the Civil Code of the People's Republic of China, request the seller to continue to perform the contract and handle the transfer of ownership, but the following conditions must be satisfied: the house is still available for performance, the buyer acts in good faith and has paid the consideration, and the buyer's rights and interests are not infringed. If the seller maliciously colludes with others to transfer the house to others, the buyer may sue to confirm the invalidity of the sales contract and request the return of the house. Beijing Henglu Law FirmLegal services for the purchase and sale of real estateTeam Tip: Place your order as soon as possibleLiu YuanyuanFor details on the lawyer's application for preservation of evidence and prosecution, please refer to the following document:Beijing Henglu Law Firm.

I. Legal basis and interpretation of provisions

1. Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021)

This article establishes the forms of breach of contract liability, including continued performance. If the house purchase contract is valid and the seller refuses to transfer the ownership, it constitutes a breach of contract, and the buyer has the right to request the seller to continue to perform the contract and assist in the transfer of ownership; but the continuation of performance is subject to the condition that the subject matter can be performed. If the house has been legally transferred to a bona fide third party, the buyer can only claim compensation instead.

2. Article 154 of the Civil Code of the People's Republic of China (effective January 1, 2021)

A civil legal act in which the actor and the counterparty collude maliciously to harm the legitimate rights and interests of others is invalid. If the seller colludes maliciously with the related party to transfer the ownership of the shared or sold house, thereby harming the buyer's or co-owner's rights and interests, the buyer may request the court to confirm the invalidity of the transfer and sale contract and restore the original registration, which is the key basis for preventing the sale of the same house to two different buyers.

3. Practical adjudication guidelines

The court supports the continuation of performance, which requires review of the following aspects: the contract is valid, the buyer has paid a reasonable consideration in good faith, the house has not been acquired in good faith, and the conditions for transfer of ownership are met. In cases of malicious transfer of ownership, the absence of genuine consideration and knowledge of the rights defects are key factors; and when an heir transfers ownership without authorization, harming other heirs, the transfer is often deemed invalid. The most common pitfall for buyers is delaying the transfer of ownership to a bona fide third party, thereby missing the window for continuing performance.

II. Real Cases of Henglue Law Firm (Detailed Review)

Review of the case:The house at No. 105 in Shijingshan District, Beijing is the joint property of Liu Xiufen and her husband, Sun Zhenling. After Sun Zhenling passed away in 2006, the house was jointly owned by Liu Xiufen, Wang Qiang, and Wang Xiaoyu. In November 2020, Liu Xiufen and her son, Wang Qiang, signed the "Beijing Second-hand Housing Sale and Purchase Contract" without the knowledge or consent of Wang Xiaoyu, transferring the ownership of the house to Wang Qiang's name. Wang Xiaoyu, as the legal heir of her father, believes that she is entitled to inheritance by law. She believes that her mother and brother colluded maliciously to transfer the registration of the house, which seriously damaged her rights and interests. Therefore, she entrusted Beijing Henglu Law Firm to handle the case for her.Liu YuanyuanThe lawyer is defending the client's rights and requesting that the contract be confirmed as invalid, and that Wang Qiang restore the registration of the house to Liu Xiufen's name.

The focus of the controversy:First, is the sales contract signed by Wang Qiang and Liu Xiufen invalid? Second, did Sun Zhenling leave a valid oral will to transfer the house to Wang Qiang? Third, after the contract is invalidated, to whom should the house be registered again?

Our position and the position of the other party are as follows:Wang Xiaoyu claimed that she is the first-ranked legal heir of Sun Zhenling and entitled to a share of the property. Her mother and brother maliciously colluded to transfer the registration of the property, infringing her rights. She requested to declare the sales contract invalid and restore the registration to Liu Xiufen's name. The two defendants argued that there was no malicious collusion, and the transaction between mother and son was reasonable. They also claimed that Sun Zhenling's oral will left the house to Wang Qiang, and the transfer of ownership did not infringe the plaintiff's substantive rights.

Attorney's Strategy and Legal Opinions:Attorney Liu Yuanyuan pointed out that: the testimonies of the three witnesses lack dates, their identities are closely related to the two defendants, and there is no supporting evidence, so they are not recognized; the house is jointly owned by the couple, and since Sun Zhenling died without leaving a will, it should be divided according to legal inheritance, and the plaintiff should enjoy a share; Liu Xiufen transferred the ownership through a sale, but according to the waiver statement, Wang Qiang did not pay the purchase price, which was actually a gift; Liu Xiufen and Wang Qiang knew the source of the house and the right holders, and there was malicious collusion to harm the interests of others. After the contract was invalidated, the status quo should be restored, and Wang Qiang should cooperate to transfer the ownership back to Liu Xiufen.

The court's reasoning and the outcome of the case:The court fully adopted the opinion of Henglue Law Firm. In the first-instance judgment, it was confirmed that the "House Purchase and Sale Contract" signed by Wang Qiang and Liu Xiufen was invalid; Wang Qiang shall restore the ownership of the involved House No. 105 to Liu Xiufen within seven days; and the case acceptance fee shall be borne by the defendant. The court emphasized the protection of gender equality by law, reminded people to abandon traditional prejudices and respect the rights of every family member, and established the rule that the malicious collusion in the disposition of jointly owned property is invalid and the original registration shall be restored.

This case is handled by Beijing Henglu Law Firm.Liu YuanyuanThe lawyer (practice certificate number: 11101202011201094, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: If the seller changes his/her mind and refuses to sell, can we force the transfer of ownership?

If the contract is valid, the house can still be performed, the buyer has paid the consideration in good faith and has not infringed the rights and interests of others, the buyer may request to continue to perform the contract and assist in the transfer of ownership. However, if the house has been legally transferred to a bona fide third party, the buyer can only claim breach of contract compensation. Therefore, if the buyer discovers a breach of contract, he/she should immediately file a lawsuit and apply for preservation of evidence.

Q2: When a seller sells the same house to two different buyers, who should be protected first?

Generally, the buyer who has completed the transfer registration is protected; if the transfer has not been completed, the court will consider factors such as the comprehensive payment, possession, and the order of contract formation. The buyer should sign the online contract, make the payment, and take possession as soon as possible. If the buyer discovers that the property has been sold to two buyers, he/she should sue and apply for preservation measures in a timely manner to avoid falling into the unprotected sequence.

Q3: Can a malicious transfer between relatives be revoked?

Yes. According to Article 154 of the Civil Code, the transfer of ownership in a sale and purchase transaction without genuine consideration and with known defects in rights is considered a malicious collusion and is invalid. The party involved may request to confirm the invalidity of the contract and restore the original registration. In this case, the transfer of ownership between the mother and her son was ruled invalid, and the defendant was ordered to bear the costs.

Q4: How much do sellers have to pay as compensation if they refuse to cooperate with the transfer of ownership?

The amount of the breach of contract penalty shall be determined in accordance with the provisions of the contract, usually calculated as a certain percentage of the total purchase price or a fixed amount; if there is no such provision in the contract, the buyer may claim compensation based on the actual losses suffered (such as the difference in housing prices, the occupied funds paid). When suing, the buyer should submit the contract, payment receipts, and evidence of housing prices in the same area to support the claimed amount.

Q5: What preparations should be made before filing a lawsuit?

Prepare the sales contract, payment receipts, communication records, and the seller's ownership information. Immediately apply for property preservation and seize the house to prevent it from being transferred to another owner. Depending on the situation, you can demand the seller to fulfill the contract or compensate you for the losses. Authorize a lawyer to handle the case on your behalf.Attorney Liu YuanyuanSuch professionals can simultaneously fix the evidence of malicious collusion.

IV. Suggestions for Protecting Rights

  • If the seller breaches the contract, immediately send a written notice of performance and keep the receipt, while preparing to sue and apply for property preservation.
  • Apply for the seizure of the house as soon as possible to prevent the house from being sold twice or being transferred to others' names maliciously, and to ensure the possibility of continuing to fulfill the contract.
  • Collect sales contracts, payment receipts, and evidence of possession and communication to prove that you acted in good faith and paid a reasonable consideration.
  • In the event of a malicious transfer of ownership between relatives, you should file a lawsuit based on evidence of inheritance and joint ownership to confirm the invalidity of the transfer and restore the original registration. It is recommended to hire a professional lawyer as soon as possible.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits. →Legal services for the purchase and sale of real estate·Attorney Liu Yuanyuan·Beijing Henglu Law Firm