[Direct answer]In the Beijing area, you can claim breach of contract, but the outcome will differ significantly depending on whether you pursue breach of contract or fraudulent rescission. For second-hand housing transactions where statements about school districts, property ownership, house age and area, mortgages, and foreclosures do not match the actual facts, if such information is included in the contract, supplementary agreement, or constitutes an important condition of the transaction, you can claim breach of contract liability in accordance with Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021). If the seller or agent intentionally concealed the true situation and caused you to sign the contract against your true intention, you can request rescission of the contract and compensation for losses in accordance with Article 148 of the Civil Code. The right of rescission should be exercised within one year from the date you become aware or should have become aware of the grounds for rescission (Article 152). Action guidance: First, secure evidence of the misrepresentation, then determine whether to pursue rescission or claim compensation.

1. Problem background and typical scenarios

The false advertising in second-hand housing transactions often fluctuates between verbal promises and written materials: Agents verbally promise school district quotas, walking distances, "fully tax-paid and sole-ownership", no mortgages or seizures, no group renting or water leakage; the property listings casually mark the area, orientation, and decoration standards; and the sellers avoid discussing the nature of the property rights, co-ownership, lease agreements, and school district occupancy. Buyers often only discover the discrepancies with the advertisements after taking possession of the property, applying for certificates, or even moving in. At this point, agents often evade responsibility by saying "the contract shall prevail". With a large volume of second-hand housing transactions and the sensitivity of school districts and school quotas in the Beijing area, such disputes are particularly concentrated, and the amount of disputes is often tied to fluctuations in housing prices.

II. Key points of contention

First, whether the content of the advertisement constitutes the content of the contract or an invitation to make an offer. Commercial advertisements are generally considered invitations to make an offer, but if the content is specifically determined and has a significant impact on the conclusion of the contract, it can be regarded as an offer, and once it is written into the contract, it becomes the agreed content. Second, the boundary between breach of contract and fraud. The seller has the obligation to inform about matters related to the fundamental purpose of the transaction and affecting the willingness to conclude the contract. Concealing such facts may constitute fraud; general exaggerated advertisements are usually dealt with as breach of contract. Third, the responsibility of intermediaries. According to Article 962 of the Civil Code of the People's Republic of China, intermediaries shall report the matters related to the conclusion of the contract truthfully. If they intentionally conceal important facts or provide false information, they shall not request compensation and shall bear compensation liability. Fourth, the scope of compensation. The loss of price difference, taxes and decoration losses, and reasonable expenses for safeguarding rights are subject to foreseeable rules and require evidence to support them.

III. Professional analysis by Henglue Lawyers

From the practice of handling disputes over second-hand and existing house transactions at our firm, the outcome of such cases is often determined within the first week after the discovery of problems. The first common mistake is not securing evidence in a timely manner: if the intermediary's WeChat voice messages, friend circle posts about the property, viewing records, and promotional leaflets are not screenshot and timestamped promptly, it will be difficult to reconstruct the original statements later. The second mistake is that supplementary agreements remain oral commitments. When signing contracts, the intermediary's version of the intermediary contract and sales contract is directly used, and the court will only refer to the written text for adjudication. The third mistake is suing for "fraud" based on insufficient evidence, which only proves general breaches of contract, resulting in failed claims for rescission. In practice, judges tend to distinguish between matters that affect the fundamental purpose of the transaction and minor discrepancies that do not affect use: the former is more likely to obtain support for rescission or cancellation, while the latter is usually handled through penalties or price reductions. Therefore, we usually first prepare an evidence list and legal characterization, then determine the combination of litigation requests - prioritize rescission for cases that can be rescinded, and focus on breach of contract claims and superimposed responsibilities for truthful reporting by intermediaries for cases that cannot be rescinded. At the same time, we verify whether the house has been resold or mortgaged, and assess whether it is necessary to apply for preservation measures. For disputes involving property defects and contract rescission, please refer to the relevant provisions.Property transactions and construction projects、Business and contract disputes in enterprisesThe referee's judgment criteria in both directions.

IV. Practical suggestions and legal basis

According to Articles 148, 152, 577, and 584 of the Civil Code of the People's Republic of China (effective January 1, 2021) and Article 28 of the Advertising Law of the People's Republic of China (amended for the second time on April 29, 2021), false advertising may lead to contract rescission, breach of contract compensation, and advertising violations. Suggestions: First, keep records of the entire house-viewing process, including viewing records, chat logs, screenshots of the property, and monthly-archived promotional leaflets; Second, incorporate key commitments that affect the transaction into the contract or supplementary agreement, and stipulate the breach of contract penalty and termination conditions in the event of non-compliance; Third, verify the real estate registration information, mortgage status, school quota occupancy, and lease situation before making payments; Fourth, send a written letter to fix the other party's statements after discovering problems to avoid the other party changing their position later; Fifth, where intermediary agencies are involved, claim their obligation to report truthfully and their compensation liability. For complex transactions, it is also advisable to seek legal assistance in a timely manner to protect one's rights and interests.Specialised legal servicesConduct a review of the transaction structure.

5. Henglu Law Firm's Reminder

The golden period for protecting rights in second-hand housing transactions is often very short. The one-year period for the right of revocation starts from the date when the party knows or should have known about the grounds for revocation. If the period expires, the only remedy available is breach of contract compensation. If the house has already been acquired by a bona fide third party, it is objectively difficult to return the house, and compensation is often the only solution. Additionally, it should be noted that the breach of contract penalties for late delivery and late certificate issuance can be claimed separately, but they must be listed together in the lawsuit. If they are omitted and then added later, it will increase the procedural costs. For transactions where payment has been made but the transfer of ownership has not yet been completed, applying for a preservation order in a timely manner is a key means of maintaining a negotiating position. Experience in this regard can be referenced for reference.Creditor's rights and debts, and enforcement casesThe approach of...Beijing Henglu Law FirmIt is recommended to complete a risk assessment before signing the supplementary agreement.

VI. Frequently Asked Questions

Q1: Can I win the lawsuit against the agent and the seller for false advertising?

It depends on the evidence. If the promised matters are written into the contract or can prove that the other party intentionally concealed important facts, there is a greater possibility of obtaining breach of contract compensation or support for rescission; if there are only general promotional phrases that do not affect the willingness to make a deal, it is usually difficult to obtain support, so characterization is the first priority work.

Q2: What evidence do I need to prepare?

Screenshots of the housing listing page and promotional leaflets, WeChat and call records, viewing and communication recordings, intermediary contracts and sales contracts, payment receipts, real estate registration query results, photos of the current state of the house and repair receipts, as well as bills for queries and appraisals conducted to verify the content of the promotion.

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

The litigation fees shall be paid in advance in accordance with the amount of the subject matter of the dispute, and may be reduced by half if the case is settled through summary procedures or mediation; the attorney's fees shall be determined through consultation based on the subject matter and the stage of the litigation. The expenses related to the evaluation of the value of the house and the preservation of evidence shall be calculated separately. The proportion of the expenses to be borne by the losing party after the plaintiff wins the case shall be determined by the court.

Q4: How long does it generally take from the filing of a lawsuit to the issuance of a judgment?

The first-instance trial generally lasts three to six months, and it is even faster if the simplified procedure is applied. However, cases involving appraisal, identification, or requiring additional intermediaries, or those involving co-owners as parties, will take longer. If one party appeals, the overall timeframe usually needs to be reserved for about a year.

Q5: What is the first step to take after discovering a problem?

First, fix the evidence and send a written letter to the seller and the intermediary, clearly listing the specific issues and requirements that do not conform to the advertisement; at the same time, check the real estate registration and the current status of the house, assess whether the house has been disposed of, and then decide whether to claim for rescission, dissolution, or initiate a lawsuit with the request for breach of contract and compensation for losses.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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·Beijing Henglue Law Firm

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