[Direct answer]In the Beijing area, you can first check the delivery and transfer of ownership dates stipulated in the contract, and then formalize the breach of contract in writing. Second-hand house buyers are relatively passive in the performance of the contract, and the three key things they can actively do are: specify the breach of contract liability in detail when signing the contract, keep records of every step during the performance of the contract, and claim for compensation promptly after the breach of contract. According to Articles 577 and 584 of the Civil Code of the People's Republic of China, if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear such breach of contract liabilities as continuing to perform the contract, taking remedial measures, or compensating for losses. The amount of compensation for losses includes the benefits that could be obtained after the performance of the contract. When asserting rights, attention should be paid to the three-year statute of limitations (Article 188), and prompt written reminders and preservation of delivery receipts should be made upon discovering a breach of contract.

1. Problem background and typical scenarios

The transaction process of second-hand housing is lengthy and involves multiple steps, from signing the contract and paying the deposit to online signing, loan approval, mortgage release, title transfer, and house delivery. Any problem in any of these steps may put buyers at a disadvantage. Common pain points for buyers include: no clear time nodes and breach of contract liabilities specified in the contract; sellers refusing to transfer ownership due to rising housing prices; mortgages, seizures, or co-owners not agreeing to the sale; and verbal promises from agents not written into the contract. When handling similar consultations in Beijing, buyers are most concerned about whether they can urge the other party to continue to fulfill their obligations and how much compensation they will receive if they ultimately fail to obtain the house.

II. Key points of dispute

First, whether to continue performance or to rescind the contract and seek compensation. If there are no obstacles to the transfer of ownership of the house and the buyer is willing to make up the payment, the seller may request to continue performance and claim the breach of contract penalty for delay in performance. If the house has been sold elsewhere or cannot be transferred due to seizure or mortgage, the seller can only resort to rescinding the contract and seeking compensation. Second, the choice between the breach of contract penalty and the deposit. The two have different natures and are generally applicable separately. If the deposit is insufficient to compensate for the losses, the seller may claim additional compensation. The amount of the deposit shall not exceed 20% of the subject matter of the main contract. Third, the scope of losses. The loss of the difference in house prices constitutes a recoverable interest, which usually needs to be proven by the transaction price or appraisal conclusion of similar houses in the same area. Fourth, prevention is more important than remedy. It is often more effective to incorporate breach of contract responsibilities, time points, and fund supervision into the contract than to seek compensation afterwards.

III. Professional analysis by Henglue Lawyers

A case of breach of contract for delayed delivery of housing handled by Beijing Henglu Law Firm provides valuable reference for second-hand house buyers to prevent contract breaches. On April 30, 2021, Zhang Quan signed a "Beijing Commercial Housing Pre-sale Contract" with Beijing A Real Estate Development Co., Ltd. to purchase a house at No. 302 in a certain residential community, with an indoor floor area of 99.41 square meters and a total price of 6,841,972 yuan. The contract stipulated that the house would be delivered before June 15, 2023. On the same day, a supplementary agreement was signed, which stipulated that if the developer delayed delivery due to its own reasons, a 90-day grace period would be granted. After the expiration of the grace period, the developer would pay a breach of contract penalty of 0.01% of the total price per day starting from the 91st day after the agreed delivery date. Zhang Quan paid the full amount, but A Company did not issue a move-in notice until February 27, 2024, and required him to move in on March 5. The delay exceeded nine months.

The dispute of the case focuses on three aspects: whether the COVID-19 pandemic and other factors constitute force majeure, whether the 90-day grace period can be cumulated with other extensions, and how to determine the standard of the breach of contract penalty. Company A claimed that the construction could be delayed for 187 days due to force majeure such as the pandemic, meetings, bad weather, and exams, and requested that the grace period be cumulated. However, the buyer demanded that the company pay a breach of contract penalty of 118,366.12 yuan for the period from September 14, 2023 to March 5, 2024. After accepting the entrustment, Tian Jiaoyan, a lawyer from Beijing Henglu Law Firm, carefully reviewed the provisions of the contract and supplementary agreements regarding the delivery time, grace period, and breach of contract penalty standard, collected payment receipts, move-in notifications, and completion and acceptance filing materials to form a complete chain of evidence. The lawyer argued that the pandemic had become a normal situation before the contract was signed in 2021, and the developer should have foreseen it, so it did not constitute force majeure. Bad weather, government meetings, and exams did not necessarily lead to a full suspension of work, and the developer could not be exempted from liability. The lawyer also maintained that the grace period should be strictly applied according to the contract, and there was no contractual or legal basis for cumulating it.

The court adopted the above opinions, determined that the contract and the supplementary agreement were legal and valid, and ruled that Company A should pay Zhang Quan a breach of contract penalty of 118,366.12 yuan for the delay in handing over the house and bear the litigation costs. This case was handled by Beijing Henglu Law Firm.Tian Jia YanThe lawyer (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent. It gives a very direct inspiration to second-hand house buyers: Firstly, when signing the contract, it is necessary to specify the specific time of delivery and transfer of ownership, the liability for breach of contract and the calculation standard. Ambiguous agreements will make it difficult to protect their rights; Secondly, if the other party delays on the grounds of force majeure or policy changes, it is necessary to see whether the other party could have foreseen it at the time of signing the contract, and the statutory exemption from liability clauses will naturally apply; Thirdly, after the delay, it is necessary to fix the evidence and make a written claim as soon as possible to avoid further losses. This involvesProperty transactionsAndContract disputesYes, it is recommended to complete the review of the terms and conditions at the contract signing stage.

IV. Practical suggestions and legal basis

According to Articles 577, 584, 585, 586, and 587 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021), if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the contract, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. The amount of compensation for losses shall be equivalent to the losses caused by the breach of contract, including the benefits that could have been obtained after the performance of the contract, but shall not exceed the losses that the breaching party could have foreseen or should have foreseen at the time of entering into the contract. If the agreed penalty for breach of contract is excessively high compared to the actual losses, the party may request a reasonable reduction. Suggestions for buyers: 1. Before signing the contract, check the ownership, mortgage, and seizure status with the real estate registration authority and confirm the opinions of the co-owners. 2. Write the time nodes for delivery, transfer of ownership, and tax payment into calculable clauses to avoid using vague expressions. 3. Use fund supervision and online signing and registration to pay the deposit and down payment according to the time nodes. 4. Immediately send a written notice of default upon detecting any signs of breach of contract, and at the same time, collect evidence of the housing market price to prepare for claiming compensation for potential price difference losses.

5. Henglue Law Firm's Reminder

The cost of preventing a breach of contract is far lower than claiming compensation afterwards. Buyers can strengthen the transaction from three aspects: First, specify the breach of contract liability in detail, clarify the daily penalty standard for late payment, and stipulate that the contract can be rescinded and the deposit refunded if the delay exceeds a certain number of days; Second, set aside a certain percentage of the balance payment as a guarantee for the handover of the house and the transfer of the household registration; Third, keep the intermediary's promotional materials, viewing records, and communication records. If there is concealment, additional responsibilities can be pursued. It should be noted that if the seller sells the same house to two different buyers, they should immediately check the registration status and apply for preservation to prevent the house from being transferred to others. If the other party fails to perform after the judgment takes effect, they can take legal action through the court.EnforcementAchieve the recovery of payments; for transactions with complex structures, it can be combined with other methods.Specialised legal servicesOverall assessment,Beijing Henglu Law FirmWe can provide contract review and full-process risk control services.

VI. Frequently Asked Questions

Q1: Can second-hand house buyers claim to continue the performance of the contract or request compensation for breach of contract, and will they receive support for these claims?

If the contract is legal and valid, and the facts of the breach of contract are clear, there is a higher likelihood of obtaining support. Those who want the house need to prove that there are no obstacles to the transfer of ownership and are willing to make up the payment; those who do not want the house can claim to rescind the contract, return the payments already made, and claim compensation for the loss of the price difference. It should be noted that the penalty for breach of contract that is excessively higher than the actual loss may be reduced, and the loss of the price difference needs to be supported by transaction examples or appraisal conclusions.

Q2: What evidence do buyers need to prepare to protect their rights?

The purchase and sale contract and supplementary agreement, the deposit and payment receipts for each installment, the online signing and filing records and fund supervision records, the intermediary's showing and communication records, the results of the inquiry into the ownership of the house and the mortgage foreclosure, the written reminder letters and delivery receipts; if claiming compensation for the price difference, prepare the transaction records or appraisal reports of similar house types in the same community; if there are disputes over the handover of the house, keep the inspection records and video materials.

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

The litigation fees are calculated based on the amount of the subject matter and are prepaid by the plaintiff. After the judgment, they will be shared according to the proportion of liability. For property preservation, the applicant needs to pay the preservation fee and provide a guarantee. The attorney's fees are determined through negotiation based on the amount of the dispute, the stage of the case, and the workload of preservation and enforcement. It is recommended to specify the charging method and amount in the power of attorney contract to avoid subsequent disputes.

Q4: How long does the rights protection process take?

The first-instance trial usually lasts three to six months, and the time required for appraisal, identification, or public service notice is even longer. The second-instance trial also takes three to six months. If the other party fails to perform after the judgment takes effect, it is necessary to apply for enforcement separately. It often takes more than half a year to deal with the disposal of houses and accounts. Overall, the whole process is expected to take a long time.

Q5: What should I do first if I discover that the seller has breached the contract?

Immediately send a written notice to the other party to fulfill their obligations and keep the proof of service. At the same time, check with the real estate registration authority to see if the house has been sold to others or mortgaged. If there is a possibility of continuing to claim the house, sue the seller as soon as possible and apply for the seizure of the house and the seller's account. If it is determined that the transfer of ownership is impossible, decisively proceed to terminate the contract, return the down payment, and claim compensation for losses.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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 Henglue Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules. It is for general reference only and does not constitute formal legal advice for 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 a timely manner.