[Direct answer]After signing the contract, the landlord refused to transfer the ownership on the grounds of price increase, which constitutes a breach of contract. According to Articles 509 and 577 of the Civil Code, the buyer may request the seller to continue to perform the contract, complete the transfer of ownership within a specified period, or terminate the contract and claim the deposit, the breach of contract damages, and the losses of the price increase difference. It is recommended to fix the evidence as soon as possible. For more details, please refer to the following link:Property sales and purchases | Legal services for construction projectsAndBeijing Henglu Law Firm.

I. Problem Background and Typical Scenarios

During the period of rising housing prices, "increasing the price after signing the contract" is a common form of disputes in the second-hand housing market. Some sellers explicitly demand an increase of tens of thousands of yuan in the price before the transfer of ownership, otherwise they refuse to cooperate with online signing, mortgage release, and transfer of ownership; some delay performance on the grounds of family objections or unreturned rented houses, secretly seeking higher-priced buyers; and some cite flaws in the contract terms to claim that the contract is invalid or grossly unfair. Buyers often have already paid the deposit or even the down payment, completed the loan approval, and are caught in a dilemma of "not willing to pay the extra money but losing a lot if they withdraw from the deal". At this time, it is first necessary to clarify that a legally concluded housing sales contract takes effect upon its establishment, and the lack of transfer registration does not affect the validity of the contract (Article 215 of the Civil Code). There is no legal basis for sellers to "raise the price at will". Raising the price unilaterally is itself a breach of contract.

II. Key points of contention

  • Contract Effectiveness and Performance Obligations: Whether the contract is legal and effective, and whether the seller can refuse to perform the contract on grounds such as price increases, failure to stipulate the transfer time, or opposition from family members.
  • To continue with the performance of the contract or to terminate the compensation: Whether the house still meets the conditions for transfer of ownership, and whether it has been sold to others or sealed up, determines which path the buyer will choose to pursue.
  • How to calculate the losses: how to choose between the penalty for the deposit, the agreed-upon liquidated damages, and the loss of the difference in the house price; and whether it is possible to make additional claims for the insufficient part (Article 588 of the Civil Code).

III. Professional analysis by Henglue Law Firm

Henglue Law Firm advises that the core of such cases is "establishing the seller's breach of contract intention + proving that the contract can still be performed". The buyer should promptly preserve the sales contract, supplementary agreements, online signing information, payment receipts, WeChat messages, and call recordings, especially keeping written evidence of the seller's request for price increases or explicit refusal to transfer ownership. In terms of litigation: If the house has not been transferred to a third party and there is no seizure, the buyer can sue to require the seller to continue performance, assist in transferring registration, and bear the liability for breach of contract; if the house has been sold to another party or is objectively impossible to transfer, the focus shifts to claiming rescission of the contract, returning the payment, and compensating for the loss of anticipated benefits. In practice, the price increase difference is usually included in the compensation scope (Article 584 of the Civil Code). From the seller's perspective, breaching the contract by raising the price also comes with costs. In a housing sales contract dispute handled by Henglue Law Firm, the parties signed a notarized "Agreement" in May 2008, stipulating that the seller would sell a house in Chaoyang District, Beijing for 400,000 yuan, cooperate with the transfer of ownership after the property rights certificate was issued, and the buyer would pay the full amount and move in on the same day. In 2021, after the issuance of the real estate ownership certificate, the parties litigated over the transfer issue. The buyer sued the seller's couple to assist in the transfer and pay 80,000 yuan in breach of contract damages. The seller agreed to transfer ownership from the beginning and had already handed over the original property rights certificate to the buyer. The court ruled that the agreement was legally valid and ordered the seller to assist in the transfer within a specified time limit. However, the court rejected the request for breach of contract damages on the grounds that the agreement did not specify the transfer time and the seller did not explicitly refuse to transfer ownership. This shows that the court clearly adheres to the principle of "fulfilling obligations where required" in existing housing contracts, and the breach of contract liability is strictly determined according to the agreement and evidence. Sellers should not harbor the illusion that "nothing will happen if they drag their feet".

IV. Practical suggestions and legal basis

It is recommended to follow a three-step approach: First, after receiving the request for a price increase, do not easily agree to it or verbally promise to terminate the contract. Instead, have a lawyer review the contract terms, the online signing process, and the status of the property ownership. Second, send a reminder letter or lawyer's letter as appropriate, clarify the performance deadline, and secure evidence of the seller's breach of contract. Third, promptly file a lawsuit and apply for property preservation to prevent the house from being resold, mortgaged, or seized. Main legal basis: Article 509 of the Civil Code (principle of full performance), Article 577 (liability for breach of contract), Article 580 (continued performance of non-pecuniary obligations), Article 584 (scope of compensation including expected benefits), Article 585 (liquidated damages and their adjustment), Article 588 (applicability of either liquidated damages or earnest money), and Article 215 (non-registration does not affect the validity of the contract). For complex situations involving the determination of contract validity or compensation calculation, please refer to the relevant provisions.Business and Commercial | Legal Services for Contract DisputesThe processing approach of this problem.

5. Henglue Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Xiong BinrongAttorney (Practice Certificate No.: 11101202211410897, subject to the certificate issued by the judicial administrative organ). Attorney's Tip: Clearly writing the transfer time, payment milestones, and breach of contract liability in the contract is the most effective protection for both parties; if the seller always agrees to transfer the ownership and has already delivered the original house ownership certificate, it generally does not constitute a breach of contract. Buyers should not privately compromise or impulsively terminate the contract when prices rise, and sellers should not panic if they are sued for breach of contract. It is essential to consult a professional lawyer as soon as possible and rely on the contract and evidence to safeguard the transaction's bottom line. For more practical guidance, please refer toBeijing Henglu Law FirmOfficial website.

Q1: If the seller raises the price unreasonably and refuses to cooperate with the transfer of ownership, can the buyer win the lawsuit?

The key lies in the validity of the contract and the current status of the house. If the contract is legal and valid, and the house has not been sold to others or sealed up, the court will generally support the continuation of performance and assist with the transfer within a specified period. The defendant's defense of refusing to perform on the grounds of price increases or family objections is usually not valid. If the house has been sold to others and transferred to them, the case will shift to claiming the termination of the contract, the return of the paid purchase price, and compensation for losses such as the price difference. The buyer needs to prepare the sales contract, payment receipts, online signing information, and chat records and call recordings showing the seller's price increases or refusal to transfer ownership. Only with a complete chain of evidence can a solid foundation for winning the case be established.

Q2: Can I claim the deposit, the penalty fee, and the price difference caused by the increase in housing prices all at once?

It cannot be simply superimposed. According to Article 588 of the Civil Code, if both the breach of contract penalty and the deposit are agreed upon, the party in breach of the contract can only choose to apply one of them; if the deposit is insufficient to compensate for the actual losses, the party in breach of the contract may separately request compensation for the excess part. The difference in the increase in the house price belongs to the loss of expected benefits. In practice, the difference between the contract price and the market evaluation price or the selling price at the time of breach of contract is often used as a reference for calculation; if the agreed breach of contract penalty is much lower than the actual losses, the party in breach of the contract may also request the court to increase it according to Article 585. It is recommended that the claimant consult a lawyer to estimate the compensation based on the evidence and choose the higher compensation option.

Q3: If the house has already been signed online, could it still be sold to someone else?

After online signing and filing, it becomes much more difficult to "sell the house to someone else". The subsequent buyer usually cannot transfer the ownership, but online signing does not equal to property registration, and the transaction is not completely safe. In practice, there are still risks such as the seller maliciously cancelling the online signing or selling the same house to two different buyers, and the house being sealed up and unable to transfer ownership. Buyers should proceed with loan review, tax payment, and ownership transfer as soon as possible, shorten the time between signing the contract and registering it, and immediately apply for property preservation if they find that the seller is delaying or contacting them abnormally. In this way, they can turn the "contractual rights" into "registered property rights" as soon as possible.

Q4: How long will it take to sue for continued performance, and what evidence do I need to prepare?

For cases subject to ordinary procedures, the first-instance trial is usually concluded within a few months. However, if the case is complex or involves appraisal and announcement procedures, the trial may take longer, with the specific timeline subject to the court's scheduling. Regarding evidence, the following documents should be prepared: the sales contract and supplementary agreements, online signing and registration information, payment receipts for deposits and purchase prices, loan approval materials, demand letters or lawyer's letters, as well as chat records and call recordings showing the other party's requests for price increases or refusals to transfer ownership. Additionally, the results of inquiries into the ownership of the property and the status of the property seizure should be obtained to form a complete chain of evidence. If necessary, it is recommended to apply to the court to retrieve the registration information.

Q5: If the seller breaches the contract and leads to the termination of the contract, can the buyer request compensation for the decoration losses?

This can be claimed, but it requires evidence to support it. If the buyer, with the seller's consent, carried out renovations on the house and the contract was terminated due to the seller's breach of contract, the renovation expenses fall within the scope of losses caused by the breach of contract and can be claimed together in accordance with Article 584 of the Civil Code; however, the actual expenses should be proven by providing the renovation contract, payment receipts, and photos before and after the renovation. The court will determine the amount based on the residual value of the renovation and the degree of fault of both parties. Generally, the amount will be determined based on the depreciated losses and will not be fully supported. Therefore, the amount claimed must be supported by evidence.

If you are currently 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 Xiong Binrong·Beijing Henglu Law Firm