[Direct answer]In the Beijing area, the buyer can sue to demand the seller to continue to perform the contract, cooperate with the transfer of ownership, and claim breach of contract penalties or compensation for losses; if the contract meets the conditions for performance, the court generally supports the forced transfer of ownership. If the seller wants to settle the matter by paying some breach of contract penalties, it's not up to him to decide. The initiative to choose whether to continue to perform the contract or to terminate the contract and claim compensation lies with the buyer.

I. Problem Background and Typical Scenarios

The period of fluctuating housing prices is a high-risk period for sellers to breach contracts: after signing the contract, the market price may be hundreds of thousands or even millions of yuan higher than the contract price. In this situation, sellers would rather return the deposit in double or pay the contractual breach of contract penalty than deliver the house and transfer the ownership. Buyers have already paid a large amount of money, the loan has been approved, and their children's school districts are waiting for registration. They are in a dilemma. At this time, if they panic and reduce the price to negotiate a new deal or trust the seller's termination plan, they will suffer actual losses.

II. Key points of contention

First, whether the contract meets the conditions for continued performance. The payment method and progress, the buyer's eligibility for purchasing a house and loan approval, and whether the house is mortgaged or sealed off determine whether the court will order a forced transfer of ownership. Second, the relationship between the penalty for breach of contract and the actual losses. If the agreed penalty for breach of contract is lower than the actual losses, the party may request an increase; if it is too high and is disputed, the court will adjust it based on the actual losses. Third, the choice between the deposit and the penalty for breach of contract. The two cannot be used concurrently, and one should be claimed instead. Before choosing one, it is necessary to calculate which is more cost-effective. Fourth, the connection between the transfer of ownership and the vacating of the house. If the seller refuses to cooperate after the court orders the transfer of ownership, the buyer can apply for the transfer of ownership unilaterally with the effective legal document. If the seller refuses to vacate the house, the buyer can also apply for forced execution. The two procedures can be carried out concurrently to shorten the time.

III. Professional analysis by Henglue Lawyers

In fact, the scope of defense against breach of contract is much broader than most people imagine. In a case we handled, Liu Han sold a house at No. 406 in Chaoyang District, Beijing to Xu Xia for 400,000 yuan in 2008. The agreement stipulated that after the property ownership certificate was issued, the parties would cooperate in the transfer of ownership and go through notarization, and Xu Xia would pay the purchase price and move in. However, in 2021, after the property ownership certificate was issued, the parties failed to negotiate the transfer of ownership, and Xu Xia sued Liu Han, demanding the transfer of ownership and the payment of a breach of contract penalty of 80,000 yuan. Liu Han entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer (practice license number: 11101202211410897, subject to the certificate issued by the judicial administrative organ) acted on behalf of the client. The lawyer organized a defense based on the facts that the transfer time was not specified in the agreement, the seller always agreed to transfer the property, and the original house ownership certificate had been delivered. The court adopted the lawyer's opinion and ruled that Liu Han and his spouse should assist in the transfer within seven days, and rejected the claim for breach of contract damages. This reminds both buyers and sellers that:House sale and purchase disputesThe determination of whether there has been a breach of contract in China highly depends on the contract terms and the evidence of performance. The party claiming breach of contract must also provide evidence of the reminder and the other party's delay in performance.

IV. Practical suggestions and legal basis

According to Articles 509, 577, and 585 of the Civil Code of the People's Republic of China (effective January 1, 2021), the party in breach of contract shall bear responsibilities such as continuing to perform the contract and compensating for losses. If the contractual penalty is too high or too low, the party may request an adjustment. Suggestions: First, before suing, verify the mortgage of the house, the seizure of the house, and the buyer's qualifications for purchasing the house to confirm that it is feasible to continue to perform the contract; Second, keep complete records of the paid house price and the performance milestones, and make payments through the supervision account as much as possible; Third, apply for property preservation in time to seize the involved houses to prevent the sale of the same house to two buyers or re-mortgaging; Fourth, list the transfer of ownership, the losses of delayed house delivery, and the contractual penalty separately in the lawsuit to provide the court with a clear path for adjudication.

5. Henglu Law Firm's Advice

During the upward phase of the housing market, if the seller breaches the contract, the most common loss for the buyer is not the amount of the breach of contract penalty, but the increase in the cost of purchasing an alternative property. This part of the loss can be claimed in litigation, but it requires evidence such as the listing records of the intermediary and the prices of similar properties to support it. Obtaining a judgment in favor of the buyer is just the first step in the transfer process. Subsequent procedures such as paying taxes, applying for registration unilaterally, and forcibly vacating the property all require careful planning. During the litigation process, the buyer should not neglect to maintain their eligibility. Breaks in social insurance payments or changes in family property ownership may invalidate their purchase eligibility before the judgment is issued, which requires special attention. On the buyer's side, it is best to specify in the contract the handling mechanism for failing to secure a loan, the deadline for moving out, and the time limit for vacating the property. These provisions serve as the best defense against breaches of contract. On the seller's side, if there are indeed objective obstacles preventing fulfillment of the contract, they should negotiate a phased refund or termination plan as soon as possible. Waiting until the judgment stage will only increase the cost of breaching the contract.Beijing Henglue Law FirmTip: If you notice any signs that the seller might breach the contract, it's better to protect your interests first and then negotiate with them. This will put you in a much more advantageous position.

VI. Frequently Asked Questions

Q1: Is there a high chance of successfully enforcing the transfer of ownership?

If the contract is valid, the buyer has the qualifications and the ability to pay, and there are no legal obstacles to the ownership of the house, the support rate for continuing to perform the contract is high, but it is necessary to first eliminate practical obstacles such as mortgage seizure.

Q2: What evidence do I need to prepare?

The more complete the performance traces are, the better, including the sales contract and supplementary agreement, payment receipts, reminder records, loan and purchase qualification materials, and the results of the inquiry into the status of the house rights.

Q3: What are the approximate costs of attorney fees and litigation fees?

The fees are charged in segments according to the amount of the subject matter. Real estate cases involve large amounts and relatively high fees. The costs of preservation and guarantees are charged separately, and it is necessary to conduct a pre-litigation assessment.

Q4: How long does the process take?

The first-instance trial often takes three to six months, and it will take even longer if there are counterclaims or appraisals. The transfer registration process also takes one to two months. You should be mentally prepared for possible fluctuations in housing prices during the litigation process.

Q5: What should I do first?

First, check the status of the house rights and your own eligibility to purchase the house, assess the feasibility of continuing with the transaction, and apply for property preservation at the same time.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and 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·Attorney Xiong Binrong·Beijing Henglue 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. In the event of a dispute, please consult a practicing lawyer in a timely manner.