[Direct answer]In the Beijing area, the core function of the supplementary agreement is to make up for the deficiencies of the main contract terms and turn the "unclear agreements" into "clear agreements". According to Article 470 of the Civil Code of the People's Republic of China (adopted in 2020 and implemented on January 1, 2021), the content of a contract generally includes the name and address of the parties, the subject matter, quantity, quality, price or remuneration, performance period and place and method, breach of contract liability, and methods of dispute resolution; Article 501 clearly states that after the contract takes effect, if the parties have no agreement or an unclear agreement on the quality, price or remuneration, performance place, etc., they may supplement the agreement by agreement. Therefore, the supplementary agreement should focus on detailing the following items: First, delivery arrangements, including the delivery time, delivery standards, and a list of ancillary facilities and furniture and appliances; Second, payment and transfer nodes, specifying the payment conditions for each payment and the corresponding steps of transfer and mortgage cancellation; Third, breach of contract liability, clearly stating the calculation method of the breach of contract penalty for late payment, late delivery, and late transfer; Fourth, rules on rescission and deposit, specifying the circumstances under which the contract can be rescinded and how the deposit will be handled; Fifth, practical matters such as tax burden, household registration transfer, and property inspection. The more specific the terms are, the smaller the room for disputes will be.
1. Problem background and typical scenarios
In second-hand housing transactions, the main contract often uses the standard format provided by the intermediary, with clauses that are relatively general, leaving many details to be resolved in supplementary agreements. Common situations include: the existence of tenants in the house, with no clear explanation of how the handover time and the lease period will align; the seller still having a mortgage to repay, with no clear specific time and responsibilities for canceling the mortgage; whether furniture and appliances will be delivered with the house, with a missing inventory list; the seller's household registration not being transferred in a timely manner; who will bear the responsibility for unpaid property fees and heating fees; and no agreed upon delivery time for the purchase invoice and tax certificates. These seemingly minor issues can often directly determine the outcome of disputes once they arise, and supplementary agreements are precisely a way to preemptively mitigate risks.
II. Key points of contention
First, the relationship between the supplementary agreement and the main contract. When there is a conflict between the two, the supplementary agreement usually prevails, but it should be noted that it must not violate the core obligations of the main contract. Second, the enforceability of the clauses. For example, vague expressions such as "deliver the house as soon as possible" and "within a reasonable time limit" are prone to disputes. Third, the reasonableness of the penalty for breach of contract. If the agreed amount is too high, it may be requested to be reduced; if it is too low, it will be difficult to enforce. Fourth, the clarity of the conditions for termination. It should specify the triggering circumstances and the method of notification. Fifth, the arrangement of ancillary obligations, including moving out of the household registration, settling the fees, delivering the materials, and cooperating with the transfer of ownership.
III. Professional analysis by Henglue Law Firm
The value of the supplementary agreement only becomes evident when disputes arise. Take the pre-sale contract dispute of a residential property handled by Henglue Law Firm as an example: On April 30, 2021, Zhang Quan signed the "Beijing City Residential Property Pre-sale Contract" with a real estate development company to purchase a house in a certain residential area with a total price of 6,841,972 yuan, and agreed to deliver the house before June 15, 2023. The supplementary agreement signed on the same day stipulated that if the developer failed to deliver on time due to its own reasons, it would be granted a 90-day grace period during which it would not bear any liability. After the expiration of the grace period, the developer would pay a penalty of 0.01% of the total price per day from the 91st day after the agreed delivery date to the actual delivery date. However, the developer did not deliver the house until March 5, 2024, a delay of nearly nine months. After accepting the case, Attorney Tian Jiaoyan studied the contract and supplementary agreement, sorted out the core provisions such as the delivery time, grace period, and penalty standard, and collected payment receipts, move-in notifications, and completion and acceptance registration materials to form a complete chain of evidence. Regarding the developer's defense that the pandemic, bad weather, meetings, and exams constituted force majeure, the attorney pointed out that the contract was signed in 2021, and the pandemic had long become a normal situation. The developer should have had the ability to foresee such circumstances, and these situations did not necessarily lead to a full suspension of work, so the developer could not be exempted from breach of contract liability. The grace period should be strictly applied according to the contract, and there was no legal basis for cumulative application. The court accepted the attorney's opinion and ordered the developer to pay a breach of contract penalty of 118,366.12 yuan and bear the litigation costs. This case shows that the clearer the supplementary agreement is, the stronger the claim will be in the event of a breach of contract. Reference can be made to this case when designing contract terms for housing sales. 补充协议的价值,往往要在纠纷发生时才会集中显现。以恒略代理的一起商品房预售合同纠纷为例:2021年4月30日,张权与某房地产开发公司签订《北京市商品房预售合同》,购买某小区房屋,总价6841972元,约定2023年6月15日前交付;同日签订的补充协议约定,若因开发商自身原因逾期交付,给予90日宽展期、宽展期内不承担责任,宽展期届满后自约定交付届满后第91日起至实际交付之日,按日支付已交房价款万分之一的违约金。开发商直至2024年3月5日才交付,逾期近9个月。田娇艳律师接受委托后,研读合同与补充协议,梳理交房时间、宽展期、违约金标准等核心约定,收集付款凭证、入住通知与竣工验收备案资料形成完整证据链。针对开发商提出的疫情、恶劣天气、会议、考试等构成不可抗力的抗辩,律师指出合同签订于2021年,疫情早已常态化,开发商应具有预见能力,且相关情形并非必然全面停工,不能免除违约责任;宽展期应按约严格适用,主张累加没有合同与法律依据。法院采纳代理意见,判令开发商支付逾期交房违约金118366.12元并承担诉讼费。本案说明:补充协议写得越明确,违约时主张越有力。涉及房屋买卖与合同条款设计的可参照。Real estate transactions and construction projects; Those involving the performance of contracts and breach of contract liability can be combined together.Business and contract disputes in enterprisesAndSpecialised legal servicesThe case was handled by Beijing Henglu Law Firm.Tian Jia YanThe lawyer (practice certificate number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts on behalf of his clients, relying on his accurate understanding of the local judicial interpretation and practical rules, to help his clients achieve favorable outcomes.
IV. Practical suggestions and legal basis
According to Article 470 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding contract terms, Article 510 regarding supplementary rules for unclear agreements, Articles 577 and 585 regarding breach of contract liability and breach of contract penalties, and Article 587 regarding down payments, as well as Article 563 regarding statutory conditions for termination, it is recommended to design a supplementary agreement in four steps: First, refine the delivery terms, specifying the delivery time, delivery standards, and a list of items delivered with the house; Second, clarify the payment and transfer of ownership milestones, corresponding each payment to steps such as mortgage cancellation, transfer registration, and house delivery; Third, quantify breach of contract liability, clearly stating the calculation methods and maximum limits for various types of overdue breach of contract penalties; Fourth, stipulate termination and dispute resolution, specifying the triggering circumstances, notification methods, and jurisdictional courts. Before signing, check whether there are any conflicts between the supplementary agreement and the main contract, and if necessary, consult a professional lawyer for review. The design of clauses involving housing transactions can be referenced from the above provisions.Real estate transactions and construction projectsFor cases involving the handling of contract disputes, the parties may refer to the following documents for reference:Business and contract disputes in enterprises.
5. Henglue Law Firm's Reminder
The supplementary agreement is not just a formality, but rather a way to address risks in advance. Three reminders: First, don't accept vague expressions like "the handover time will be negotiated separately". The date and delivery standards must be clearly specified. Second, don't leave the "liquidated damages" column blank. It is this column that determines the amount of compensation in the event of a delay. Third, don't overlook ancillary obligations such as household registration transfer and settlement of fees. Once these items are omitted, the cost of accountability will be very high in the future.Beijing Henglu Law FirmIt is recommended that both the buyer and the seller check all the potential problematic aspects of the transaction item by item before signing the supplementary agreement, and then draft clauses specifically addressing these issues.
VI. Frequently Asked Questions
Q1: What should I do if there is a conflict between the supplementary agreement and the main contract?
Generally, the supplementary agreement shall prevail, as it constitutes the parties' refinement and amendment of the main contract's content. However, the supplementary agreement shall not evade the core obligations of the main contract. If there are conflicts and it is suspected that the supplementary agreement may reduce one party's main responsibilities, it may be necessary to make a comprehensive judgment based on the overall content and the circumstances of the signing of the contract.
Q2: What should a supplementary agreement include?
The handover time and standards, the list of items delivered with the house, the payment and transfer of ownership milestones, the calculation of penalties for late payment and late handover, the deposit and conditions for termination, the responsibility for taxes, the relocation of household registration and settlement of fees, as well as dispute resolution methods and jurisdiction courts, etc.
Q3: How much does it cost to hire a lawyer to review the contract terms?
The review of terms is usually charged on a per-item or per-hour basis, with relatively low fees. However, if it involves full-process transaction support or dispute representation, the fees will be charged based on a percentage of the transaction value or on a phased basis, subject to the provisions of the written contract of engagement.
Q4: How long does it usually take from signing the contract to receiving the keys?
It depends on the payment method and the mortgage cancellation arrangements. For cash purchases, the process is generally faster, while for those involving mortgage loans, it usually takes one to two months to complete the approval and transfer of ownership. The specific timeframes are subject to the contractual agreements and local processing deadlines.
Q5: What should I do first?
First, sort out the potential problematic aspects of the transaction, including the delivery time of the house, the cancellation of the mortgage, the delivery of items, the transfer of household registration, and the settlement of fees; then list them one by one in the supplementary agreement, specifying the time points, the liability for breach of contract, and the conditions for termination. Before signing the agreement, please have a professional lawyer check its consistency with the main contract.
The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.
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 Tian Jiayan·Beijing Henglu 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 you encounter disputes, please consult a practicing lawyer in time.