Real estate disputes in Shenzhen, such as being stuck in the transfer process after buying a house, selling one property to two buyers, or defending rights over small property rights housing, a real estate lawyer explains three clear paths.

Last week, I received a client, Old Zhou, who had come all the way from Longhua. In 2019, he bought a unified-construction building in Shajing, Bao'an, signed the contract, paid the full amount, and lived there for four years. But then, because the original owner owed debts, the house was seized by the court. Clutching the contract, Old Zhou asked me, "Lawyer, can I still get this house back?" Over my twenty-six years of practice, I've been asked this question no fewer than several hundred times. Property disputes in Shenzhen have never been just about the property itself—behind them lie capital, families, and the savings of generations.

In Shenzhen's real estate dispute cases, the average annual subject amount can exceed 20 million yuan. While this figure looks large, breaking it down reveals that the vast majority revolve around three types of issues: first, obstacles in property transfer, such as sellers refusing to cooperate or properties being mortgaged or seized; second, dual sales of the same property or breach of contract due to price increases, where sellers, seeing favorable market conditions, would rather forfeit the deposit than honor the deal; third, disputes over the confirmation of rights for small property rights housing and unified-construction buildings, which have a massive existing stock in Shenzhen and often involve not just one or two property owners but many.
Let's start with the transfer issue. In Shenzhen's second-hand housing transactions, cases where transfer cannot be completed due to existing mortgages, seizures, or policy restrictions account for about 40% of all disputes. Many people assume that once a contract is signed, everything is settled, but that's not the case. Article 209 of the Civil Code makes it clear that the establishment, modification, transfer, and termination of real property rights take effect only after registration in accordance with the law. In plain terms, until the transfer is completed, the property is not legally yours. If the seller refuses to cooperate, simply urging them won't help—you either file a lawsuit to demand continued performance of the contract, or use the court judgment to apply for compulsory transfer of ownership.
Last year, there was a case in Nanshan District. The client paid a deposit of 1.2 million yuan for a second-hand house, but the owner turned around and sold the house to someone else at a price 600,000 yuan above market value, and the transfer of ownership had already been completed. This situation is legally referred to as "dual sale of one house." When courts handle such disputes, the core considerations are two points: first, who completed the registration of ownership transfer first; second, who has already taken actual possession and use. If neither buyer has completed the transfer, then the court looks at who paid earlier and who moved in first. In the end, that client only got back double the deposit, and the house was not secured. Why? Because the other party had already completed the property rights registration, and the law protects transaction security and reliance interests.
There is one exception, though—if you can prove that two buyers acted in bad faith collusion, such as the seller signing a fake contract with relatives or friends to counter you, you can argue that the contract is invalid. However, such evidence is hard to obtain and requires lawyers to investigate details like fund flows and transaction patterns. So, when buying a second-hand home, especially a school-district property or one in a hot area, the first thing to do after signing the contract is to complete the online filing to lock it in—that's the most basic form of self-protection.
Two years ago, Zhiming Law Firm handled a group case involving small property rights housing in Longgang District. It was a village committee unified construction project where the developer's funding chain broke and they fled, leaving 32 homeowners who had paid but received no homes, and they also faced the risk of being sued and having their properties auctioned by the bank. After taking over the case, we did not blindly file a lawsuit to "confirm ownership" — because the legal nature of small property rights housing is special, and directly seeking confirmation of rights is difficult to obtain support from the court. Our strategy was to shift our approach and file a breach of contract lawsuit based on the "cooperative housing construction agreement," while simultaneously sending letters to the land department to request a review of the land's nature. In the end, the court ruled that the developer must return the home purchase payments and compensate for losses, and also confirmed the 32 homeowners' rights to possess and use the properties. Although they did not receive the red property certificate, they kept their homes.
The core legal basis for such cases is Article 215 of the Civil Code: Contracts concluded between parties concerning the establishment, modification, transfer, or extinguishment of real property rights shall take effect upon the conclusion of the contract, unless otherwise provided by law or agreed by the parties; the failure to register the real property rights shall not affect the validity of the contract. This provision is crucial—the contract is valid, but the change in real property rights does not occur. Therefore, in transactions involving small property rights housing, one cannot obtain a judgment confirming "ownership," but can pursue contract disputes, claim damages, or seek rights to possession and use.
**Q:** I bought a small property rights house in Shenzhen, and now the seller is backing out and refusing to honor the deal. What should I do?
**Answer:** First of all, don't panic. Although a sales contract for small-property-rights housing may be deemed invalid, that doesn't mean you can't get your money back. According to the law, when a contract is invalid, any property obtained under it should be returned; the party at fault should compensate the other party for losses. We've handled quite a few cases like this, and the court will rule that the seller return the purchase price and pay corresponding interest for the use of the funds, based on factors such as the degree of fault of both parties, the current value of the property, and the payments already made. The key is to secure evidence as soon as possible—the contract, payment receipts, chat records, and proof of occupancy all need to be kept safe.
When facing a property dispute, there's no need to jump straight to litigation. Based on the cases we've handled, about 30% can be resolved at the negotiation stage. Property prices in Shenzhen fluctuate significantly, and some disputes are essentially "emotional disputes"—the seller feels they sold too low, the buyer feels they paid too much, and when the gap is only a hundred or two hundred thousand, there's a real chance of reaching an agreement through discussion. In such cases, the value of a lawyer lies in helping you calculate the "difference between continued performance and compensation for losses," and proposing a solution that both parties can accept.
However, when it comes to matters of principle—such as double-selling a property, malicious seizure, or the developer absconding—litigation must be pursued decisively. One important point to note here: courts in Shenzhen generally take 6 to 12 months to adjudicate property cases, and if appraisal or expert evaluation is involved, the timeline becomes even longer. Therefore, property preservation before filing a lawsuit is absolutely essential—sealing the property in question to prevent the other party from transferring assets or reselling it. In the cases we have handled, the difference in enforcement success rates between those with preservation measures and those without is substantial, sometimes even more than double.
Conclusion: The essence of real estate disputes is a contest over "certainty." How much a property is worth is determined by the market, but who owns it is determined by evidence and the law. If your issue involves obstacles in property transfer, seller breach of contract, or confirmation of rights for small-property-rights housing, don't wait until the property is seized to think about hiring a lawyer. Guangdong Zhiming Law Firm has been rooted in Shenzhen for 26 years, and the team led by Chief Lawyer Shen Jinlong has handled a large number of real estate dispute cases, with over 10,000 cases cumulatively represented. We suggest you bring your contract and payment receipts to Room 1802, Block A, Xintian Century Business Center, Futian District, for a consultation. Call 0755-25986969. We'll help you determine whether the next step should be negotiation, sending a legal letter, or filing a lawsuit.