[Direct answer]This is illegal. After the contract is signed and takes effect, both parties should fully perform their respective obligations as agreed. The seller has no right to unilaterally raise the price or refuse to perform the contract on the grounds of a rise in housing prices. According to Article 509 of the Civil Code of the People's Republic of China (adopted in 2020 and implemented on January 1, 2021), the parties shall fully perform their obligations in accordance with the agreement; Article 577 stipulates that if a party fails to perform or fails to perform the contract in accordance with the agreement, it shall bear the breach of contract liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. As for the buyer's remedies, there are usually three paths to consider: First, requesting the seller to continue to perform the contract and cooperate with the transfer of ownership, which is the most direct way to achieve the transaction purpose; Second, claiming to rescind the contract and demanding the seller to return the deposit in double (according to the penalty for the deposit in Article 587) or pay the breach of contract penalty according to the contract; Third, claiming compensation for actual losses, especially the price difference losses caused by the rise in housing prices. It should be noted that requesting the seller to continue to perform the contract usually requires that there are no objective obstacles to the performance of the contract, such as the house not being resold and transferred to a bona fide third party, or not being sealed up. Therefore, it is very crucial to take preservation measures for the house in time.

1. Problem background and typical scenarios

During periods of fluctuating housing prices, disputes involving "sellers reneging on contracts and raising prices" have significantly increased. Typical scenarios include: after signing the contract, the seller delays online signing or transfer of ownership for various reasons, implying a price increase; the seller sells the house to others and has already completed the transfer, only for the buyer to discover this afterwards; the seller claims the contract is invalid on the grounds that the spouse does not agree or the co-owner has not signed; the seller intentionally creates obstacles to performance in an attempt to force the buyer to agree to terminate the contract. Buyers often find themselves in a passive position: either accepting the price increase, or watching the house being sold to others. At this time, timely assertion of rights and timely preservation of evidence often determine the final outcome.

II. Key points of dispute

Firstly, the validity of the contract and the full performance of obligations. After the contract takes effect, the price cannot be unilaterally changed. Secondly, the feasibility of continuing to perform the request depends on whether the house can still be delivered and whether it has been acquired by a bona fide third party. Thirdly, there are rules restricting the application of the penalty for the deposit and the breach of contract. Fourthly, the scope of damages includes the price difference, agency fees, taxes, and the cost of purchasing another house. Fifthly, the handling of the defenses raised by co-owners or spouses requires a comprehensive judgment based on the rules of signature, authorization, and apparent agency.

III. Professional analysis by Henglue Law Firm

The key to handling cases where sellers breach contracts lies in "seizing time and securing evidence". In practice, we usually advise buyers to do three things immediately when they detect signs of delay or breach of contract by sellers: Firstly, sort out the contract and payment evidence to fix the seller's breach of contract, including records of reminders and communication exchanges; Secondly, assess the feasibility of continuing to perform the contract, and verify whether the house has been sold to others, seized, or mortgaged; Thirdly, sue the court as soon as possible and apply for seizure of the house to prevent it from being transferred to third parties. If the house has already been transferred to bona fide third parties, it is usually impossible to continue to perform the contract. At this point, the buyer should turn to claiming termination of the contract, double refund of the deposit, or payment of breach of contract damages and compensation for the loss of price difference. In addition, if the seller defends with excuses such as "the spouse does not agree" or "the co-owner did not sign", it is necessary to review whether there were other co-owners participating in the negotiation and receipt of payments during the transaction process to determine whether it constitutes authorization or apparent agency. For disputes involving house sales, reference can be made to the relevant provisions of the Civil Code of the People's Republic of China.Real estate transactions and construction projects; For cases involving contractual breach of duty, the parties concerned may resolve the dispute through negotiation or refer the matter to a third-party dispute resolution mechanism such as arbitration or mediation.Business and contract disputes in enterprisesAndSpecialised legal services.

IV. Practical suggestions and legal basis

According to Article 509 of the Civil Code of the People's Republic of China (effective January 1, 2021) on the provisions of full performance, Article 563 on the conditions for statutory rescission, Article 577 on the provisions of breach of contract liability, Article 584 on the provisions of the scope of compensation for losses, Article 585 on the provisions of liquidated damages, Article 587 on the provisions of the penalty for deposit, and the provisions of the Civil Procedure Law of the People's Republic of China (amended in 2023) on property preservation, it is recommended to follow four steps: First, fix the evidence of the seller's breach of contract, including contracts, payment receipts, reminder letters, and communication records; Second, sue and apply for the seizure of the house as soon as possible to prevent it from being disposed of elsewhere; Third, choose claims according to the status of the house, prioritizing claims for continued performance and cooperation with the transfer of ownership, and switching to rescission and claims for deposits, liquidated damages, and losses in the difference in price when continuation of performance is impossible; Fourth, pay attention to the connection between the statute of limitations and the performance period to avoid rights being damaged due to delay. For disputes involving housing transactions, reference can be made to the above-mentioned provisions.Real estate transactions and construction projects; For matters involving contractual breach of obligations, the parties may resolve the dispute through mediation or arbitration.Business and contract disputes in enterprises.

5. Henglue Law Firm's Advice

When the seller breaches the contract, the buyer should avoid the mistake of "only urging but not safeguarding their rights". Three reminders: First, don't just send WeChat messages to urge the seller to handle the matter. It's necessary to take legal actions to fix rights, especially to apply for house seizure; Second, don't easily accept the proposal to terminate the contract. If the transaction purpose can still be achieved, it's often more beneficial to continue to perform the contract; Third, don't ignore the claim for the price difference. The actual loss includes not only the refund of the fees already paid, but also the price difference caused by the rise in housing prices.Beijing Henglu Law FirmIt is recommended that buyers agree on a clear penalty ratio and termination conditions when signing the contract, and immediately consult a lawyer to evaluate and safeguard the solution plan once they detect any signs of breach of contract.

VI. Frequently Asked Questions

Q1: If the seller breaches the contract and raises the price, can I force a transfer of ownership?

You can claim to continue to perform the contract and require cooperation in the transfer of ownership, but it is necessary that there are no objective obstacles preventing the performance of the contract, such as the house not being sold to a bona fide third party and transferred to him, or not being sealed up. It is recommended to sue and apply for the seizure of the house at the same time, so as to maintain the basis for the performance of the contract.

Q2: What materials do I need to prepare?

The purchase and sale contract and supplementary agreement, the deposit and payment receipts, the online signing or filing information, the reminder letters and communication records, the evidence of the seller's refusal to perform or demand a price increase, as well as the loss receipts for agency fees, taxes, and additional housing costs.

Q3: How much does it cost to go to court?

The litigation fees shall be paid according to the standard based on the amount of the litigation subject matter; to apply for the seizure of the house, it is necessary to pay the preservation fee and provide a guarantee. If a lawyer is appointed, the fees shall be charged according to the proportion of the subject matter or on a per-stage basis, subject to the provisions of the written power of attorney contract.

Q4: How long does it take from filing a lawsuit to obtaining the final judgment?

Cases subject to simplified procedures are generally concluded within three months, and cases subject to ordinary procedures are generally concluded within six months; the timeframes for cases involving appraisals, expert evaluations, or appeals will be extended accordingly, subject to the court's trial arrangements.

Q5: What should I do first?

First, fix the contract and payment evidence, as well as the communication records of the seller's breach of contract, and verify whether the house has been sold to another party or sealed up. Then, sue as soon as possible and apply for the seizure of the house. Based on the status of the house, determine whether to claim for the continuation of the contract or to terminate it and seek compensation.

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 publicly available 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 a timely manner.