[Direct answer]In the Beijing area, you can urge the other party to pay, but you must follow the proper procedures and not just rely on verbal urging. According to Article 579 of the Civil Code of the People's Republic of China, if a party fails to pay the price, the other party may request it to pay; Article 628 requires the buyer to pay the price according to the agreed time. The first step is to issue a written reminder and retain the delivery certificate, giving the other party a reasonable time limit (usually 7 to 15 days); the second step is to claim the default penalty for late payment or the interest on the occupied funds according to the contract; the third step is, if the reminder is ineffective and the contractual purpose cannot be achieved, to notify the other party to rescind the contract according to Article 563 and claim the penalty for the deposit according to Article 587. Note that the ordinary statute of limitations is three years, starting from the date when the payment is due. A written reminder can interrupt the statute of limitations.

I. Problem Background and Typical Scenarios

It is common for buyers to make late payments.Real estate transactions and construction projectsThere are two types of transactions: Buyers may delay payment due to failing to pass the loan approval, difficulties in fund turnover, or disputes over the quality and area of the house; some people also pay the deposit or down payment but fail to handle the payment of the balance and online signing procedures for a long time. Sellers usually urge the buyers verbally first, then by phone, but the buyers repeatedly make promises and constantly default on payments. By the time the sellers want to take legal action, the evidence has already been lost and the statute of limitations is approaching. When handling such consultations in the Beijing area, the sellers are usually most concerned about three things: whether they can still recover the money, how to calculate the breach of contract penalty, and whether to terminate the contract.

II. Key points of contention

First, the effectiveness of the reminder. Oral reminders are difficult to provide evidence for, and written reminders are the prerequisite for claiming breach of contract and termination. Moreover, a clear and reasonable performance period is required. Second, the standard of the breach of contract penalty. If the contract stipulates that the penalty is calculated at a certain percentage per day, it shall generally be calculated according to the contract. However, if the contractually agreed breach of contract penalty is excessively high compared to the actual losses, the buyer may request a reasonable reduction. Third, whether the conditions for termination have been met. Only when the other party still fails to perform within a reasonable period after the reminder and causes the contractual purpose to be unattainable, will it constitute a statutory ground for termination. Fourth, whether the deposit and the breach of contract penalty can be used concurrently. The two have different natures, and generally, one of them should be claimed. If the deposit is insufficient to compensate for the losses, the buyer may claim separately. Fifth, the statute of limitations. The ordinary statute of limitations is three years, starting from the date of payment due. A written reminder can produce an interrupting effect, but it requires verifiable evidence of delivery.

III. Professional analysis by Henglue Lawyers

According to Henglue's experience in handling similar cases, the failure of sellers to collect payments is often not a legal issue, but rather a problem with evidence and timing. There are three common scenarios: First, the contract fails to specify payment milestones and breach of contract liabilities, leaving sellers only recourse to statutory rules. However, it's difficult to quantify the amount and timing of payments in this case. Second, sellers rely solely on WeChat voice messages and phone calls to collect payments, which fails to prove that the other party has actually received the termination notice. Third, sellers neglect to preserve evidence, only to find that the other party's account has been emptied by the time the judgment is issued. In judicial practice in Beijing, courts are particularly strict in reviewing the delivery of written notices and termination notices. It is recommended to use express mail and retain the delivery receipt and inquiry records, or to pre-agree on the delivery address and electronic delivery methods in the contract.Contract disputesIf the case involves disputes over the payment of the project price, the parties concerned shall simultaneously organize the payment records, reconciliation statements, and correspondence to form a complete chain of evidence. If the parties intend to terminate the contract, they should also pay attention to the one-year statute of limitations for the right of rescission, so as to avoid the rights being extinguished due to long-term neglect.

IV. Practical suggestions and legal basis

According to Articles 579, 626, and 628 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021), the buyer shall pay the price in accordance with the agreed amount, time, and payment method. If the buyer fails to pay the price, the other party may request the buyer to make the payment. Articles 585 and 586 stipulate the rules on penalties and deposits; Articles 563, 564, and 566 stipulate the statutory rescission, the time limit for exercising the right of rescission, and the legal consequences of rescission; Article 188 stipulates that the ordinary limitation period is three years, calculated from the date when the right holder knows or should know that his rights have been infringed and the date when the obligee knows or should know that his obligations have been breached. It is recommended to proceed in the following order: First, send a written notice of default and set a reasonable time limit, and keep the mailing and signing receipts; Second, simultaneously check the contract's penalty clause, calculate the amount on a daily basis, and prepare a list of losses from the occupation of funds; Third, if the purpose of the contract can no longer be achieved, promptly send a notice of rescission and claim for return and compensation; Fourth, if necessary, apply for property preservation to prevent the other party from transferring funds.

5. Henglue Law Firm's Advice

The process of collecting payments should be systematic: the first reminder aims to resolve communication issues, the second reminder formalizes the breach of contract, and the third notice terminates the contract and prepares for litigation. In practice, there are several points that are easily overlooked: Firstly, in installment sales, if the buyer fails to pay the amount due within one-fifth of the total price and still fails to pay within a reasonable period after being reminded, the seller may request payment of the full price or terminate the contract (Article 634 of the Civil Code). Secondly, there is a real risk that the agreed penalty will be reduced if it is too high. When claiming compensation, evidence of actual losses should be prepared, rather than just relying on the figures stipulated in the contract. Thirdly, winning the lawsuit does not necessarily mean recovering the payment, and there are other legal risks involved.Creditor's rights and debts, and enforcementFirstly, if the other party's assets are difficult to locate, it is necessary to inquire about their property clues as soon as possible and consider taking protective measures. Fourthly, for transactions with complex structures, it is advisable to seek professional legal advice.Specialised legal servicesFor an overall evaluation of the plan, please refer to the more practical guidelines for reference.Beijing Henglue Law FirmOfficial website.

VI. Frequently Asked Questions

Q1: If the buyer fails to make payment on time, can they obtain support by suing to claim payment and breach of contract penalties?

As long as the contract is legal and valid and can prove that the other party has not made payments on time, there is a high probability of obtaining support for claims for payment and breach of contract penalties. The key lies in whether the payment deadlines are clear and whether there are records of reminders; if the contract does not stipulate breach of contract penalties, you can claim damages for the loss of funds. If the stipulated breach of contract penalties are excessively high compared to the actual losses, the court may reduce them. It is recommended to determine the amount of the claim after calculating it based on both the contract stipulations and the actual losses.

Q2: What evidence do I need to prepare for debt collection and litigation?

It is necessary to prepare the sales and purchase contract and supplementary agreement, the deposit and payment receipts for each installment, the online signing and filing records and fund supervision records, the reconciliation statements, the written reminder letters and the mail receipt certificates, as well as the communication records via WeChat and email. For those claiming losses due to fund occupation, they should also prepare the certificates of the loan market quotation interest rate or the actual financing cost during the same period. The time and amount of each piece of evidence should correspond to each other to form a complete chain.

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

The litigation fees are calculated based on the amount of the litigation subject and are prepaid by the plaintiff in advance. After the judgment, the losing party shall bear the fees in proportion; applying for property preservation requires paying the preservation fees separately and providing guarantees. The attorney's fees are determined based on the amount of the dispute, the stage of the case, and the complexity of the case. It is recommended to specify the charging method and amount in the written entrustment contract to avoid subsequent disputes.

Q4: How long does it take from issuing a reminder to actually receiving the money?

The first-instance trial is usually concluded within three to six months, and it will be faster if the summary procedure is applied; cases involving appraisal, expertise or public notice for service will be correspondingly prolonged, and the second-instance trial will also take three to six months. After the judgment takes effect, if the other party fails to perform its obligations, it is necessary to apply for compulsory enforcement separately, and the time of recovering the money will depend on the progress of property investigation and disposition.

Q5: What should you do first if you discover that the buyer has made a late payment?

First, send a written reminder and retain the delivery receipt, clearly requiring payment within a specified period; at the same time, check the contract's penalty clause and termination conditions, and calculate the benefits of both continuing to perform the contract and terminating it for compensation. If the other party still fails to perform the contract, promptly file a lawsuit and apply for property preservation to avoid winning the judgment but not being able to collect the money.

The above answer is based on the judicial practice in Beijing. The judicial interpretations 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·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 you encounter disputes, please consult a practicing lawyer in time.