[Direct answer]Generally, the seller will first make rectifications and compensate for damages, and only when the breach of contract reaches a fundamental level can the contract be terminated. If the indoor air quality of the fully furnished house does not meet the agreed standards or national standards, according to Articles 577 and 582 of the Civil Code of the People's Republic of China (effective January 1, 2021), you can require the seller to bear the contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses, including the costs of rectification and treatment, inspection fees, vacancy losses, and penalties. Only when the exceeded standards are so severe that it is unsafe to live in the house and the contractual purpose cannot be achieved, can you claim to terminate the contract, withdraw from the house, and seek compensation according to Article 563 of the Civil Code. When handling such cases in Beijing, the court usually takes the inspection reports issued by qualified institutions as the core evidence. Action guidance: First, notify the seller in writing to make rectifications and commission a qualified institution for inspection. If the exceeded standards are not rectified or affect normal living, you can then claim to terminate the contract.

1. Problem background and typical scenarios

The finished houses are delivered ready to move in, but the owners often feel dizzy and tearful when they smell the pungent odor. Self-testing or commissioned testing reveals that formaldehyde and TVOC exceed the standard. Developers often make excuses like "just ventilate it" or "the smell is normal", leaving owners in a dilemma between "continuing to live" and "withdrawing from the contract and claiming compensation". Who should conduct the testing, which standards should be used, and what level of exceeding the standard constitutes a fundamental breach of contract are the focus of the controversy.

II. Key points of contention

Firstly, the selection of testing standards and testing time points, and the differences in applicability between GB 50325 and GB/T 18883. Secondly, the burden of proof and the probative force of unilaterally commissioned testing. Thirdly, the boundary between the obligation to rectify and the termination of the lease. Fourthly, the scope of losses, including remediation fees, testing fees, rent, and vacancy losses.

III. Professional analysis by Henglue Lawyers

When handling such disputes, the first step is to address the issue of "how to prove exceeding standards". At the first level, standards and procedures: Indoor air quality inspections typically rely on two sets of standards. First, the "Standard for the Control of Indoor Environmental Pollution in Civil Construction Projects" (effective from August 1, 2020), which is used in the final acceptance phase of the project; and second, the "Indoor Air Quality Standard" (issued on July 11, 2022 and effective from February 1, 2023), which applies to the occupancy phase, with a formaldehyde limit of 0.08mg per cubic meter. Inspections should be conducted by qualified institutions in accordance with standard procedures. Inspection reports commissioned unilaterally have limited evidentiary value in litigation. It is safer to notify the developer in writing to jointly commission inspections or apply for court-appointed appraisals. At the second level, the dividing line between breach of contract and rescission: If the housing quality fails to meet contractual standards, the developer should first be required to perform remedial measures and compensate for corresponding losses. Only when the air quality exceeds standards severely, directly endangers occupants' health, and renders the contractual purpose of "residential use" unattainable, does it constitute a fundamental breach of contract, allowing rescission according to Article 563 of the Civil Code. At the third level, calculation of losses: Claimable items include remedial costs, inspection and appraisal fees, rental or vacancy losses due to inability to move in, property and utility expenses due to delayed remediation, and contractually agreed penalties for late delivery. Claims should be supported by invoices and time-related evidence. At the fourth level, common pitfalls: First, failing to include environmental standards in the contract at the signing stage makes it difficult to prove "non-compliance with contractual standards", for which national standards can be used as a fallback. Second, conducting self-ventilation or renovations before inspections may destroy the original state, making evidence collection difficult and requiring prior preservation. Third, relying on the developer's self-inspection results should be avoided; inspections should be jointly commissioned by both parties or conducted by qualified third-party institutions. Beijing courts tend to determine the fact of exceeding standards based on inspection reports and then allocate remedial and compensation responsibilities according to the degree of breach of contract.

IV. Practical suggestions and legal basis

First, upon receiving the house, simultaneously retain relevant evidence: odor, on-site photos and videos, delivery time records, acceptance certificates, and rectification notices. Second, notify the developer in writing and commission a qualified institution for inspection, or jointly commission an inspection with the developer. Third, claim rectification and compensation for exceeding standards, including inspection fees and losses due to vacancy; gather additional evidence if the developer refuses to rectify the issue. Fourth, if the exceeded standards seriously affect living conditions, initiate legal action to terminate the contract, request a refund, and seek compensation. Main legal basis: Articles 563, 577, and 582 of the Civil Code of the People's Republic of China (effective January 1, 2021); Indoor Air Quality Standards (effective February 1, 2023); and Standards for the Control of Indoor Environmental Pollution in Civil Buildings (effective August 1, 2020). Specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Reminder

Three key points regarding formaldehyde exceeding standards: First, conduct testing before discussing a refund; a jointly commissioned report is the most authoritative. Second, demand rectification and compensation first if the standard is exceeded; only when it affects living conditions can the contract be terminated. Third, ensure that invoices and timelines correspond to each other to accurately calculate losses. For disputes involving the quality of luxury apartments and refunds, you can seek legal assistance through the following channels:Real estate transactions and construction projectsThe service provides a comprehensive solution, which can be integrated into the detection and identification of engineering quality disputesSpecial servicesFor refunds and implementation details, please refer to the relevant sections.Creditor's rights and debts, and enforcementFor columns, advice on consumer rights protection and contract review is available upon requestBusiness and contract disputes in enterprisesTeam.

VI. Frequently Asked Questions

Q1: If the test results from an independent agency show that the pollutant levels exceed the standard, but the developer refuses to acknowledge the results, what should I do?

A unilaterally commissioned report has relatively weak evidentiary value. The correct approach is to first notify the developer in writing and propose to jointly commission an appraisal. If the developer refuses to cooperate, you can apply to the court to commission an appraisal in the litigation. At the same time, keep a record of the developer's refusal to cooperate, which in itself is strong evidence of the developer's improper performance of its rectification obligations and can also reduce the burden of proof on your side.

Q2: Can I check out if the formaldehyde level is slightly above the standard?

Generally, it is not possible. Slight exceedance of standards constitutes a quality defect, and the court usually supports rectification and compensation rather than directly terminating the contract. Only when the exceedance is so severe that it is unsafe to live in or the contractual purpose cannot be achieved, may the court support the tenant's right to terminate the lease. Whether the exceedance is severe should be determined based on the test results of a qualified institution combined with the physical condition of the occupant.

Q3: How much will it cost to file this lawsuit?

The main costs are appraisal fees, attorney fees, and case acceptance fees, with the acceptance fees calculated based on the amount of the dispute. If the claim is only for rectification and compensation, the amount of the dispute is limited and the costs are manageable. However, if the claim is for withdrawal from the contract, the amount of the dispute will be the total price of the house, and the acceptance fees will increase accordingly. It is possible to reduce costs through negotiation and complaints first, and then proceed to litigation if no agreement is reached.

Q4: How long will it take from receiving the notice for rectification to resolving the issue?

The consultation and rectification period usually lasts from several weeks to several months. Entering the first-instance ordinary litigation procedure generally takes three to six months, and it will be extended if a judicial appraisal is needed. During this period, it is important to preserve evidence of rental or vacancy losses. The longer the period and the more complete the receipts are, the clearer the actual losses that can be claimed, which will in turn facilitate subsequent claims.

Q5: I can still live here now. What should I do?

Immediately collect evidence: on-site photos and videos, records of odors and physical discomfort, and materials delivered and accepted; notify the developer in writing to request rectification and simultaneously commission a test; claim remediation and compensation for materials exceeding standards; and never conduct large-scale renovations or conduct supplementary tests after long-term ventilation before collecting evidence, so as to avoid damaging the original state and affecting the provision of evidence.

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 situations.

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, in order 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 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. In the event of a dispute, please consult a practicing lawyer in a timely manner.