[Direct answer]In the Beijing area, there are two lines of legal provisions: 1. For transactions with an agreement on retention of ownership, if the buyer fails to make payment within five days after being reminded and still defaults on the payment, the seller may reclaim the subject matter (right of reclamation). 2. For ordinary installment sales without an agreement on retention of ownership, the seller cannot "reclaim" the subject matter. Instead, they can request the buyer to pay the full price or rescind the contract and return the subject matter according to the same standards. - The reminder procedure cannot be skipped. Directly going to the buyer's premises to retrieve the goods would constitute an infringement of the buyer's rights.

I. Problem background and typical scenarios

The equipment is sold in installments, the car loan is defaulted, and the construction machinery is overdue for "rental instead of purchase" — the seller discovers that the buyer no longer makes payments, and the first reaction is often to send people to retrieve the equipment. Whether it is possible to retrieve the equipment and how to do it legally directly determine whether the seller exercises his rights or ends up paying a compensation instead.

II. Key points of dispute

First, the prerequisites of the right of reclamation: the agreement on retention of ownership and the threshold of one-fifth. Second, the rigidity of the reminder procedure. Third, the redemption and resale after reclamation. Fourth, the path of rescission when there is no retention of ownership.

III. Professional analysis by Henglue Lawyers

First, the constitution of the right of recovery: Article 641 of the Civil Code allows the seller to stipulate in the sales contract that the ownership of the subject matter shall remain with the seller until the buyer pays the full price or fulfills other obligations. Article 642 stipulates the circumstances of recovery - if the buyer fails to pay the agreed price after being reminded within a reasonable period (the judicial interpretation refines the threshold to one-fifth of the total price), fails to fulfill specific conditions, or improperly disposes of the subject matter (sells, pledges, or otherwise disposes of it improperly) - any of the three circumstances occur and the seller has agreed to recover or retain ownership, the seller may recover the subject matter. Second, the rigidity of the procedure: Reminder is a preliminary procedure - a written reminder with a reasonable performance period (about two weeks is appropriate in practice). If the buyer fails to pay after the deadline, the seller can recover the subject matter. Skipping the reminder and directly deducting the goods may constitute an infringement of the buyer's right of possession and result in a counterclaim. It is best to recover the subject matter through consultation, notarization, or litigation preservation, as unilaterally forcibly removing the goods carries high risks. Third, the path after recovery: If the buyer pays the full price within the redemption period, the subject matter shall be returned to the original owner and the contract shall continue to be performed; if not, the seller may resell the subject matter - after deducting the recovery, storage, and transaction costs and unpaid amounts, the remaining balance shall be refunded to the buyer, and the buyer shall make up the shortage (Article 643). Recovery does not equal termination; the two sets of procedures are based on contract and interest selection. Fourth, installment sales without ownership retention: Article 634 provides remedies for the seller - if the buyer fails to pay the full price within one-fifth of the total price and fails to pay within a reasonable period after being reminded, the seller may request the buyer to pay the full price (accelerated maturity) or terminate the contract (termination may require the buyer to pay the subject matter's use fee). Note that there is no concept of "recovery" here; after termination, the seller requests the return of the subject matter, not self-help recovery. Fifth, practical guidance: The seller should stipulate the ownership retention clause in the contract and register it (the registration of ownership retention of movable property can be done on the Unified Registration and Publicity System for Movable Property Financing of the People's Bank of China to resist bona fide third parties); standardize payment milestones and reminder letter templates; on the buyer's side, they should be vigilant against the restrictions of the ownership retention clause on their own refinancing and resale - selling equipment without paying the full price not only violates the contract but may also constitute unauthorized disposition. In Beijing, the volume of installment transactions of engineering equipment and vehicles is large, and disputes over supply interruption often involve arguments over "whether recovery is legal or not". Only by preparing clauses and procedures in advance can rights be effectively protected.

IV. Practical suggestions and legal basis

The first step is to sign the contract terms: The ownership retention clause must be included in the contract and registered. Failure to register will prevent it from being enforceable against bona fide third parties. The second step is to issue a reminder: Send a written reminder within a reasonable timeframe and retain evidence of delivery. The third step is to choose a path: For contracts with retention clauses, proceed with repossession, redemption, and resale; for contracts without retention clauses, proceed with accelerated maturity or rescission and return. The fourth step is to avoid self-help: Seize and transport goods through negotiation or judicial procedures to avoid being counter-sued. Main legal basis: Articles 634, 641, 642, and 643 of the Civil Code of the People's Republic of China; specific applications shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

There are three key points to understand when recovering goods in installments: First, the right to recover goods only exists if there is a retention of title clause. Second, issuing a notice of default is an indispensable procedure. Third, after recovering the goods, the buyer can redeem them and resell them, but the accounts must be settled properly with any excess or shortage being compensated accordingly. If there is no retention of title clause, the contract can only be terminated and the goods returned. Attempting to directly take the goods away without following these procedures is tantamount to digging oneself into a hole. For disputes involving installment sales and the right to recover goods, parties can seek legal resolution through the appropriate channels.Business and contract disputes in enterprisesFor a comprehensive solution to the service, you can refer to the procedures for cutting off supplies, seeking compensation, and enforcementCreditor's rights and debts, and enforcement casesFor plates involving the compliance of vehicle equipment transactions, they can be combined togetherReal estate transactions and construction projectsFor reference, you can check the section related to installment financing arrangements\nFinancial capital and cross-border transactions involving foreign entities.板块。

VI. Frequently Asked Questions

Q1: How much does the buyer need to pay to retrieve the goods?

The buyer fails to pay the due price within one-fifth of the total price, and still fails to make the payment within a reasonable period after being reminded to do so.

Q2: Can I directly pick up the goods without signing the retention of ownership clause?

No. You can only request full payment or terminate the contract and demand a refund. Transporting the goods by yourself carries the risk of infringing others' rights.

Q3: Can the buyer redeem it after retrieving it?

During the redemption period, the party who pays the purchase price can redeem the subject matter, and the subject matter shall continue to perform the contract.

Q4: Who will get the profit from the price difference?

After deducting the retrieval and storage fees and the unpaid amount from the resale price, the remaining amount shall be refunded to the buyer, and the buyer shall make up the shortage if necessary.

Q5: Is it necessary to register the retention of ownership?

Unless registered, the ownership of the property cannot be asserted against bona fide third parties. For large-value equipment and vehicles, it is recommended to conduct unified registration for movable property financing.

The above questions and answers are mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglu 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. In case of disputes, please consult a practicing lawyer in time.