[Direct answer]In the Beijing area, if it's written as "deposit", it can be refunded double; if it's written as "security deposit", it generally cannot be refunded double. According to Article 586 of the Civil Code of the People's Republic of China (effective January 1, 2021), the parties may agree that one party shall pay a deposit to the other party as a guarantee of the creditor's rights. The deposit contract shall be concluded upon the actual delivery of the deposit. The amount of the deposit shall not exceed 20% of the subject matter of the main contract, and the excess part shall not have the effect of a deposit. Article 587 provides that if the party receiving the deposit fails to perform the debt or performs the debt in violation of the agreement, resulting in the failure to achieve the purpose of the contract, it shall refund the deposit double. Therefore, if the seller regrets not selling after receiving the deposit, you can claim double refund of the deposit, and also claim to continue to perform the contract when the main contract can be performed; but if the receipt or contract is written as "security deposit", "goodwill deposit", or "intention deposit", the penalty for the deposit generally does not apply, and you can only claim refund of the principal and claim damages for breach of contract. Action guidance: First, check which word "deposit" is written on the certificate, and then decide on the claim path.

I. Problem Background and Typical Scenarios

When buying a commercial property, buyers usually pay a deposit to secure the listing, and the two parties agree to sign a formal contract and complete the transfer within a certain period of time. However, the seller may later encounter a buyer who offers a higher price, or may back out on the deal citing reasons such as "my family doesn't agree" or "the rent has increased". Buyers often get confused: Is the payment I made a deposit or a booking fee? Can I claim double compensation? Can I demand that the seller must sell the property to me? In Beijing, where commercial property transactions involve large sums of money, the difference between the two terms can lead to very different outcomes.

II. Key points of contention

First, the legal differences between the deposits, earnest money, and goodwill deposits. Second, the handling of the portion of the deposit exceeding 20%. Third, the buyer's right of choice when the seller changes his mind—whether to return double the amount or continue to perform the contract. Fourth, the distinction between the failure to achieve the contractual purpose and general breach of contract.

III. Professional analysis by Henglue Lawyers

First, identify the nature and then determine the path. On the first level, the statutory requirements for a deposit: The deposit serves both a guarantee and a penalty function, and its establishment requires a written agreement and actual payment. The amount must not exceed 20% of the subject matter of the main contract. Any excess amount does not have the effect of a deposit and is treated as a prepayment. On the second level, distinguishing it from the "ordinary deposit": Ordinary deposits, goodwill deposits, and intent deposits are typically regarded as prepayments in practice. They do not have a penalty function. If the seller reneges on the deal, the buyer can generally only demand a refund and claim actual losses. Therefore, it is essential to confirm that the receipt explicitly states "deposit" when signing the contract and receiving the payment. On the third level, the triggering conditions for double refund: According to Article 587 of the Civil Code, this applies when the party receiving the deposit fails to fulfill the obligation or performs in a manner inconsistent with the contract, rendering the contractual purpose unattainable. If the seller is merely late in performance or proposes to amend the terms, the buyer must prove that the contractual purpose has become unfeasible to claim double refund. If the property has been sold to another party or transferred to a third party, it can generally be directly determined that the contractual purpose has failed. On the fourth level, rights of choice and restrictions: The deposit penalty and the right to continue performance cannot be claimed simultaneously. The buyer must choose between "requiring delivery and transfer of ownership" and "double refund of the deposit and termination of the contract". Once a choice is made, it cannot be revoked. Therefore, it is necessary to comprehensively evaluate whether the property can still be performed, whether it has been sold to another party, changes in market prices, and the buyer's own financial arrangements. Additionally, the deposit and the breach of contract penalty cannot be applied concurrently. If the contract simultaneously stipulates both the deposit and the breach of contract penalty, the breaching party can only claim one of them. On the fifth level, evidence points: Retain the deposit receipt and transfer records (indicating the deposit), the sales contract or intermediary contract, notifications or chat records from the seller regarding reneging on the deal, and clues indicating that the property has been sold to another party. If the transaction was facilitated by an intermediary, the intermediary may be required to provide a statement on the transaction and communication process. Beijing courts have clear application standards for the deposit penalty, with the content of the receipt serving as the primary basis for determination.

IV. Practical suggestions and legal basis

First, before making a payment, confirm that the voucher and contract clearly state "deposit", and the agreed amount shall not exceed 20% of the contractual amount. Second, if the seller reneges on the contract, immediately fix the evidence of their refusal to perform the contract to avoid waiving their rights voluntarily. Third, evaluate which is more advantageous, continuing to perform the contract or demanding a double refund, and then choose a path. Fourth, if no agreement can be reached through negotiation, file a lawsuit to claim a double refund of the deposit or to demand continued performance of the contract and hold the other party accountable for breach of contract. Main legal basis: Articles 586, 587, and 588 of the Civil Code of the People's Republic of China (effective January 1, 2021); the relevant content of the Guaranty Law of the People's Republic of China has been absorbed and replaced by the Civil Code; the specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

Three key points for protecting rights related to deposits: 1. Only written deposits entitle you to penalties; written down payments can only be refunded. 2. The portion exceeding 20% of the contract value does not count as a deposit. 3. You can choose between double refund and continued performance, but don’t claim both at the same time. For disputes involving deposits in commercial property transactions, you can seek legal assistance through the following channels:Real estate transactions and construction projectsThe service obtains an overall solution, which involves the integration of contract terms and breach of contract liabilityBusiness and contract disputes in enterprisesFor reference, you can check the sections on fund recovery and enforcementCreditor's rights and debts, and enforcementFor column-related issues or disputes between brokers and intermediaries, you can seek advice hereSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: I paid a deposit, but the seller changed his mind. Can he demand double the amount back?

No. The deposit is usually regarded as an advance payment, and the penalty for breach of contract does not apply to it. What you can claim is the return of the payment and compensation for actual losses, such as the agency fees paid for buying a house and the loss of the price difference. To get a double refund, the key is that the payment receipt and the contract must clearly state that it is a "deposit". Therefore, you must check the wording before making the payment.

Q2: If there's no transfer receipt for the deposit, is it only the receipt that's useful?

It's useful but incomplete. The receipt can prove the nature of the payment, and the transfer record can prove the actual delivery and the amount. Combining the two is the most reliable approach; if there's only a cash receipt, additional evidence such as chat records and witness statements should be provided. The deposit contract comes into effect upon actual delivery, so proving that the goods have been actually delivered is a prerequisite for claiming a double refund.

Q3: Approximately how much does it cost to claim a double refund?

The litigation fees shall be calculated in stages according to the amount of the disputed subject matter corresponding to the double deposit. The attorney's fees can be negotiated with the law firm. For smaller amounts, it is recommended to negotiate first or seek mediation through an intermediary; for larger amounts, it is suggested to entrust a lawyer to sort out the evidence and the basis of the claim to avoid the application of the deposit penalty due to errors in expression or path selection.

Q4: If the seller changes their mind, should I insist on the seller fulfilling the contract or demand a double refund?

If the ownership of the house is clear, it has not been sold to anyone else, and you really want to buy it, you can claim to continue to perform the contract and request assistance with the transfer of ownership. If the house has been sold to someone else or transferred to a third party, it is no longer possible to continue to perform the contract. In this case, you should claim a double refund of the deposit and terminate the contract. The emphasis of evidence for the two cases is different from the litigation request, so it is necessary to determine it in advance and maintain consistency.

Q5: The seller changed their mind and refuses to refund my money. What should I do now?

Immediately secure evidence of their refusal to perform their obligations: chat records, audio recordings, written notifications, and receipts; subsequently, send a written reminder demanding double repayment or continued performance within a specified timeframe; initiate legal action against those who fail to perform their obligations within the time limit, and apply for property preservation if necessary. If there is a suspicion that the property has been resold, promptly check the real estate registration information to secure evidence.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 the purchase and sale of real estate·Beijing Henglue 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. In case of disputes, please consult a practicing lawyer in time.