[Direct answer]In the Beijing area, first determine whether the contract can still be performed. If the seller refuses to cooperate without a valid reason, the buyer may sue to demand continued performance, assist in handling the transfer registration, and claim breach of contract penalties or compensation for losses. If the house has been sealed up, the mortgage has not been lifted, the house has been sold to others, or the co-owners do not agree to the transfer, continued performance will be obstructed. At this time, it is advisable to promptly evaluate the possibility of terminating the contract, returning the house payment, and pursuing breach of contract liability. According to Articles 577 and 585 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021), the breaching party shall bear responsibilities such as continued performance, taking remedial measures, or compensating for losses, and the statute of limitations for litigation is three years. If there are signs of the other party transferring property, the buyer should apply for preservation and seizure of the house immediately.
I. Problem Background and Typical Scenarios
The transaction cycle of second-hand houses is long and involves many steps, and the transfer of ownership is the most prone to problems. Common situations include: the seller regrets the rising housing prices and refuses to cooperate with the online signing and transfer of ownership; the house is still mortgaged or has been sealed up by the court at the time of signing, and the mortgage release is far from happening; the seller sells the same house to two buyers, and the party who handles the transfer first obtains the property rights; the co-owners fail to sign the contract and claim that the contract is invalid afterwards; the buyer's loan approval is delayed or the loan amount is reduced, and the seller uses this as a reason to terminate the contract. Once a dispute arises, the two parties often stalemate between continuing to perform the contract or terminating it and seeking compensation. Whoever takes the initiative first will be more proactive.
II. Key points of contention
First, the validity of the contract and the nature of the performance obstacles. Issues such as co-owners' failure to consent or lack of authority to dispose of the property belong to validity or rights defects, while matters like mortgages, seizures, or resale to third parties constitute performance obstacles, which require different approaches to resolution. Second, the feasibility of continued performance. If the ownership of the property is clear and the buyer has already paid or has the ability to pay, the court tends to order continued performance and assist with property transfer. However, if there are rights encumbrances or the property rights have been acquired by a third party, the case is typically converted to breach of contract compensation. Third, the choice between the deposit and the breach of contract penalty. The deposit penalty and breach of contract penalty cannot generally be claimed simultaneously. It is more advantageous to select the option with higher compensation or easier evidence collection. Fourth, apportionment of fault. In stalemates caused by mutual factors such as loan delays or tax disputes, the court will allocate responsibility based on the proportion of fault. It is particularly important for the buyer to retain records of reminders and communication efforts.
III. Professional analysis by Henglue Lawyers
Henglue once represented a client in a dispute over property ownership and transfer arising from a transaction conducted under a borrowed name. Company A needed a loan for its affiliated company, so it used employee Zhang *'s name to sign the "Beijing City Second-hand House Sales and Purchase Contract", selling a 262.05-square-meter house in Chaoyang District to Zhang * for 7.3374 million yuan. The down payment was 2.5774 million yuan, and the remaining 4.4 million yuan was paid by Zhang * through a mortgage loan and transferred to Company A's account. After Zhang * obtained the property ownership certificate, he refused to cooperate in handling the property ownership. Company A sued to confirm the invalidity of the contract and to return the house, but the first-instance court dismissed the case due to insufficient evidence. Company A then entrusted Beijing Henglue Law Firm to handle the case.Li YonghuiThe lawyer (practice license number: 11101199611955812, subject to the certificate issued by the judicial administrative organ) acted as the agent in the second instance. The lawyer focused on the abnormalities of the transaction nature and the completeness of the evidence chain, reconstructed the evidence around the flow of funds, the holders of warrants and fees, the agency holding agreements, and receipts, and argued that the parties did not have a true purchase and sale agreement, and the provisions of Article 146 of the Civil Code of the People's Republic of China on false expressions of intention should apply. The second-instance court adopted the above-mentioned opinion, revoked the first-instance judgment, and ruled to confirm the invalidity of the contract and restore the registration of the house to A Company. This case suggests that the success or failure of transfer disputes often depends on the completeness of the evidence chain, rather than simple oral agreements. It can be referenced for future cases.Property sales and construction projectsThe relevant points of the case handling.
IV. Practical suggestions and legal basis
According to Articles 509, 577, 585, and 587, as well as Article 188 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021), which stipulate a three-year statute of limitations, buyers or sellers can proceed with the following steps: First, immediately send a written notice to the other party to perform the contract and specify a deadline, and retain the express delivery receipt and chat records; Second, verify the ownership registration, mortgage, and seizure status of the property to determine whether it is feasible to continue performance; Third, promptly apply for pre-litigation or in-litigation property preservation against the seller who may transfer or dispose of the property otherwise; Fourth, clearly specify the specific items of transfer of ownership, delivery, breach of contract penalties, and compensation for losses in the litigation request to avoid omissions; Fifth, accurately select the penalty for the deposit or the claim for breach of contract penalties to avoid having the claim rejected due to duplication.
5. Henglue Law Firm's Reminder
The initiative in a transfer dispute often lies with the party that acts faster. Buyers should pay close attention to two things: the evidence chain of the payment node for the house price, and whether the house has been registered by others first. Before signing the contract, it is necessary to verify the identity of the property owner and the co-ownership situation, the status of the mortgage and seizure, the household registration and lease situation, and to write down the transfer deadline, breach of contract liability, and tax burden in sufficient detail. Vague clauses often cannot be translated into winning interests in litigation. For disputes that have already occurred, do not delay by repeatedly negotiating verbally. The negotiation records should be put in writing, because the statute of limitations and the overall transaction costs are being lost. After litigation, if the other party has limited property under his name, it is also necessary to evaluate the feasibility of enforcement and, if necessary, combine it with other measures.Creditor's rights and debts, and enforcementThe methods used to preserve and realize the value of the assets; if the intermediary institutions fail to fulfill their duties or operate in violation of regulations, the parties concerned may file complaints with the competent authorities separately and take relevant actions in conjunction with them.Business and contract disputes in enterprisesThe experience suggests that one should take responsibility. In case of a complex situation, you can refer to it for reference.Specialised legal servicesThe overall design of the plan.Beijing Henglu Law FirmIt is recommended to complete the evidence inventory and preservation assessment at the early stage of the dispute.
VI. Frequently Asked Questions
Q1: Can I win if I require the seller to cooperate with the transfer of ownership?
If the ownership of the house is clear and there are no performance obstacles such as seizure or mortgage, and the buyer has paid according to the agreement or has the ability to pay, the court usually supports the continuation of performance and orders the assisting in the transfer registration. If the house has been acquired by a third party in good faith or there are rights burdens that are difficult to eliminate, the continuation of performance is objectively impossible, and it is more practical to terminate the contract and claim breach of contract damages at this time.
Q2: What evidence do I need to prepare?
The house purchase and sale contract and supplementary agreement, the deposit and payment receipts for the house price, the reminder letters and delivery records, the online signing and purchase restriction qualification materials, the loan approval documents, the house ownership and mortgage seizure inquiry records, the communication records via WeChat and SMS, and all written materials related to the intermediary transactions.
Q3: How much does it cost to litigate this kind of lawsuit?
The litigation fees shall be prepaid in stages according to the amount of the disputed subject matter, and the higher the amount claimed for transfer of ownership or compensation, the more fees that need to be prepaid. To apply for property preservation, it is necessary to provide a guarantee and pay the preservation fees. The attorney's fees shall be determined through negotiation based on the subject matter and the stage of the litigation. If the contract stipulates that the breaching party shall bear the cost of safeguarding rights, the party may claim for it in the litigation, and the court will ultimately make a determination on the matter.
Q4: How long does it take from filing a lawsuit to obtaining a result?
The first-instance ordinary procedure usually concludes within six months, and the timeframe is even shorter for cases applying the summary procedure. Cases involving appraisal, expert evaluation, or public service notifications will be extended accordingly. If the other party appeals and the case proceeds to the second instance, it generally takes another three to six months. After the judgment takes effect, if the other party fails to cooperate, it is necessary to apply for enforcement. The overall timeframe will depend on the progress of the case.
Q5: What should I do first?
First, send a written notice to the other party to perform the obligation within a specified time limit and keep the delivery receipt. At the same time, go to the real estate registration authority to inquire about the ownership of the house, the status of the mortgage and the seizure; if it is confirmed that there is a risk of transfer or that a third party has preemptively conducted transactions, apply for property preservation as soon as possible. Then, based on the feasibility of performance, decide whether to continue to request performance or to seek compensation for breach of contract.
The above answer is based on the judicial practice in Beijing. The judicial interpretation 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 evidence materials, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Li Yonghui·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.