"A house with a deposit of 1.2 million was sold to someone else for 7.2 million? One bedroom, two sells rights in Shenzhen, lawyers teach you to grasp the key"

In March 2024, Mr. Zhang from Futian, Shenzhen, found a second-hand home in Jingtian North through an agent for a total price of 6.8 million yuan. On the day of signing the contract, he paid a deposit of 1.2 million yuan, but a week before the property transfer, the seller sold the house to another buyer for 7.2 million yuan. When Mr. Zhang took the contract to a lawyer, he discovered that the seller had already mortgaged the property to a third party. Similar situations are not isolated cases in Shenzhen — in 2023 alone, Shenzhen courts accepted over 4,100 housing contract disputes, with the highest single-case subject amount reaching 31.75 million yuan.

Many clients ask us when they first arrive: "The contract is signed and the deposit is paid, so why can't we still get the house?" The legal issues behind this are far more complex than people imagine. From dual sales of one property to confirmation of rights for small property rights housing, from purchasing a house under someone else's name to transferring ownership of seized properties, every step can become a "fatal trap" in real estate transactions. Below, from a practical perspective, we break down the paths to resolving real estate disputes in Shenzhen.

One: When taking on a case, first examine three dimensions: property rights status, transfer obstacles, and breach of contract evidence.

The first step is to find out the property's background. Real estate registration information can reflect whether there is a mortgage, seizure, or advance notice registration. Shenzhen's Real Estate Registration Center implements networked inquiries for areas such as Futian, Nanshan, and Longhua, but many property owners do not know that a mortgaged house cannot be transferred until the loan is paid off. The second step is to look at the transaction background—whether it is joint marital property disposed of without consent, or the developer going bankrupt in a chain of sales; different causes correspond to completely different litigation strategies.

Step three: solidify the chain of evidence. Director Shen Jinlong of Zh

II. Deep Dive: Not every lawsuit needs to go to a second trial — mediation and preservation are just as critical.

Litigation is not the only way out, but preservation in litigation often determines whether the final judgment can be enforced. According to Article 215 of the Civil Code, contracts concluded between the parties concerning the establishment, alteration, transfer, or extinguishment of rights in immovable property shall become effective upon the formation of the contract, unless otherwise provided by law or otherwise agreed by the parties; the failure to register the property rights shall not affect the validity of the contract. In other words, a valid contract does not mean the property is in hand; applying to the court to seal the property and prevent the other party from transferring it is the highest-priority step in litigation.

Asked about specific strategy level, Q: If a seller sells one house to two buyers, and one buyer sues for transfer of ownership, will the court support it? A: It depends on the situation. If the first buyer has already completed online registration and actually moved in, and the second buyer has only signed a contract without transfer of ownership, Shenzhen courts usually give priority to protecting the one who has legally taken possession, but on the premise that the buyer must prove having exercised reasonable due diligence when signing the contract and having paid in full or the vast majority of the payment.

III. Differentiated Breakthrough: Three Entry Points for Confirming the Rights of Small Property Rights Housing Groups

Disputes over small property rights housing are a problem unique to Shenzhen, and handling them is far more difficult than ordinary commercial housing. There are a large number of historically遗留 buildings in areas such as Bao'an, Longgang, and Guangming that lack independent red certificates, and the validity of sales contracts is very likely to be deemed invalid. However, invalid contracts also involve the allocation of fault liability — according to Article 157 of the Civil Code, after a civil legal act is invalid, property obtained as a result of that act shall be returned; if return is impossible or unnecessary, compensation shall be made at a discounted price, and the party at fault shall compensate the

The group case involving small property rights housing handled by Zhiming Law Firm concerns a 9-story farmers' building on Dalang Street in Longhua District. The developer sold multiple units to different buyers, leaving 32 households unable to obtain household registration for an extended period and their children's schooling was consequently blocked. Director Shen Jinlong's team did not simply choose the "refund to close the case" approach, but instead simultaneously filed both an action for confirmation of rights and an action for confirmation of contract validity. Through consolidated trial of the series of cases, they carefully verified the capital contribution records, original agreements, and current possession status of all 32 households one by one. In the end, the court ruled that 28 households were entitled to lawful residential rights, while the remaining 4 households received full refunds plus compensation of 17% for capital occupation fees.

Four, Real Case Review: Futian District Sealed Property "Lift - Transfer - Mortgage" Three-Step Process

In December 2023, a couple from Futian District found a school-district apartment in Shekou, Nanshan, and signed the contract, only to discover that the property had been seized by the Futian Court due to the owner's debt disputes. At that point, only 42 days remained before the deadline for submitting their child's enrollment materials. After Zhiming Law Firm intervened, they immediately assisted the clients in filing an execution objection application with the seizing court, while also negotiating a debt repayment plan with the creditors. On the 9th day, the court lifted the seizure; on the 23rd day, the property transfer was completed; on the 38th day, the

Q: Can a court-sealed property be purchased? A: Yes, but the "lift seal + transfer ownership" must be done simultaneously to lock in the deal. Currently, some courts in Shenzhen support transfer with an existing mortgage based on the "Real Estate Sales Contract" and payment vouchers, but the premise is that the seller cooperates and the creditor consents. Otherwise, the only option is to assert the validity of the sale under Article 24 of the "Provisions of the Supreme People's Court on Sealing, Distraining, and Freezing of Property in Civil Execution" and then file a separate execution objection lawsuit.

V. Practical Advice: Three Actionable Checklists to Avoid Pitfalls When Buying a Home in Shenzhen

First, before signing, you must obtain the full set of real estate registration records; do not rely only on a copy of the property ownership certificate. The "Real Estate Information Computer Query Result Table" printed by the self-service query machines in Futian and Nanshan districts costs only 40 yuan and lets you see whether the property is subject to seizure, mortgage, or objection registration. Second, all large payments should be made via bank transfer, with the note "purchase payment," and each payment should correspond to a different payment milestone; avoid cash or third-party collection. Third, if the online contract and the paper contract are inconsistent, be sure to explicitly exclude unreasonable disclaimer clauses in the online version through a supplementary agreement.

Once a dispute arises, delay is the biggest cost. The first-instance trial period for real estate litigation in Shenzhen is typically 6 to 9 months, but if appraisal or identification, or service by public announcement, is involved, the time may double. If you are facing issues such as stalled property transfer, double selling of a property, or disputes over small property rights housing, it is recommended that you consult a professional lawyer as soon as possible with the original contract and payment vouchers. Guangdong Zhiming Law Firm has been deeply rooted in Shenzhen for 26 years, with over 10,000+ cases handled cumulatively. Director Shen Jinlong, a lawyer with 26 years of practice experience, is located at Room 1802, Tower A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen. Tel: 0755-25986969. Appointments for in-office consultations include a free preliminary analysis of the litigation plan.