Behind the hot sales of Beijing Zijing Chenyuan Lake View House: 5 types of legal risks and rights protection paths that homebuyers must be vigilant about
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Recently, the high-end residential project Zijing Chenyuan in Beijing has achieved hot sales with its "Lake View Redemption", becoming a hot topic in the Beijing Dinghao market. Against the backdrop of intensified differentiation in the real estate market, scarce landscape resources and real-life presentations can indeed impress high net worth individuals. However, from the perspective of legal practice, the more "landscape", "quality", and "high-end" real estate projects are emphasized, the more complex the legal risks faced by buyers in the signing, receiving, and moving in stages. In the past five years, more than 60% of the disputes over commercial housing sales contracts tried by Beijing courts involved unfulfilled promotional promises, reduced decoration costs, overdue delivery, and changes in school districts. Can the rippling lake on the developer's brochure be included in the contract? How can homebuyers avoid "paying for the landscape and struggling to protect their rights"? This article combines the Civil Code and the judicial interpretation of the Supreme People's Court on the sale and purchase contracts of commercial housing to sort out the core legal issues in high-end real estate transactions.
1、 Does the lake view in the advertisement legally count as part of the contract?
Many homebuyers believe that the lake view displayed in the sales office sand table, brochure, and model room is the developer's promise, and if the landscape shrinks during delivery, the developer will be in breach of contract. This judgment is only half correct.
Article 473 of the Civil Code stipulates that an invitation to make an offer is an expression of the desire for others to make an offer to oneself. Auction notices, tender notices, prospectuses, commercial advertisements, and promotions are considered as invitations to make an offer. Commercial advertisements usually belong to invitation to offer and do not have contractual binding force. However, Article 3 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Disputes over Contracts for the Sale and Purchase of Commercial Housing clearly stipulates that the sales advertisements and promotional materials of commercial housing are invitations to offer. However, if the seller's explanations and promises regarding the housing and related facilities within the scope of the commercial housing development plan are specifically determined and have a significant impact on the conclusion of the commercial housing sale and purchase contract and the determination of the housing price, they should be regarded as offers. The statement and promise, even if not included in the contract for the sale of commercial housing, should still be considered as part of the contract. If the parties violate them, they shall bear the liability for breach of contract.
Translation into practical language: If the lake scenery of Zijing Chenyuan is described in a "specific and definite" way in the promotion, such as specifying the lake area, location, and distance from buildings, and this lake scenery directly affects your decision to buy a house and the transaction price, then even if it is not written in the contract, it may still be considered as part of the contract in law. On the contrary, if it is only vague expressions such as "living by the lake" and "water landscape gardens", the difficulty of safeguarding rights will significantly increase.
The Chaoyang Court in Beijing once tried a similar case, in which the developer promoted the "Ten Thousand Meter Central Lake View" and the lake surface shrank to less than 3000 square meters upon delivery. Based on the specific extent of the promotional materials and the premium of the housing price, the court ultimately determined that the developer had breached the contract and ordered compensation for the price difference to the buyer. This case has reference value for high-end real estate buyers.
2、 How can homebuyers provide evidence to claim compensation for the shrinkage of fine decoration standards?
High end real estate projects generally adopt refined decoration delivery, and contracts often only state "high-end decoration" and "same level brand", with vague information on specific materials, models, and brands. When receiving the house, it is found that there is a significant difference between the actual decoration and the model room, which often puts buyers in a dilemma of providing evidence.
Article 577 of the Civil Code stipulates that if one party fails to perform its contractual obligations or does not perform its contractual obligations in accordance with the agreement, it shall bear the liability for breach of contract, such as continuing to perform, taking remedial measures, or compensating for losses. But the prerequisite is that you can prove what the 'agreed standard' is.
Lawyer's practical advice: Firstly, before signing the contract, the developer should be required to include the specific brand, model, material, and unit price of the fine decoration in the contract attachment, the more detailed the better; Secondly, keep the original photos, videos, and promotional materials of the model room, preferably notarized; Thirdly, when receiving the house, entrust a professional house inspection agency to issue a house inspection report, record each item that does not comply with the contract agreement, and require the developer to sign and confirm; Fourthly, pay attention to the exemption clauses such as "sample room for reference only" in the contract. If such standard clauses are unreasonable in exempting the developer from liability, they can be declared invalid according to Article 497 of the Civil Code.
In practice, the court's determination of the price difference in fine decoration usually requires a third-party cost assessment. Buyers can apply for judicial appraisal in litigation to determine the price difference between the actual decoration and the agreed standard, and claim compensation based on this.
3、 How to calculate the penalty for overdue delivery and certificate application?
Due to the complexity of construction and multiple acceptance processes, it is not uncommon for high-end real estate projects to be delayed in delivery. Buyers need to pay attention to two time points: the delivery date specified in the contract and the certification date.
Article 585 of the Civil Code stipulates that the parties may agree that in the event of a breach of contract, one party shall pay a certain amount of liquidated damages to the other party based on the circumstances of the breach, or may agree on a method for calculating the amount of compensation for losses incurred as a result of the breach. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, they may be appropriately reduced upon request.
The contract for the sale of commercial housing usually stipulates that the penalty for overdue delivery shall be calculated on a daily basis, ranging from 0.05% to 0.03%. If the liquidated damages stipulated in the contract are too low to compensate for actual losses (such as rent for the same location), the buyer may request the court to increase them. In judicial practice in Beijing, courts will adjust based on the rental standards of similar houses in the same area or the interest on the purchase price.
Special reminder: Homebuyers should promptly issue a written reminder after the delivery deadline stipulated in the contract expires, and keep the mailing receipt. If the developer fails to deliver the house on time and meets the termination conditions stipulated in the contract (usually 90 or 180 days overdue), the buyer has the right to claim termination of the contract and demand a refund of the house price and compensation for losses in accordance with Article 563 of the Civil Code. But the right of termination has a time limit for exercise, and may be extinguished upon expiration.
4、 Can the developer be held responsible for the failure of the school district's promise?
Another major selling point of high-end real estate is the "prestigious school district". But the division of school districts is announced annually by the education regulatory department, and developers have no right to make decisions. If the promotion promises that 'buying a house means attending a certain prestigious school', and the school district is adjusted after delivery, can the buyer claim compensation?
The key still lies in whether the commitment is "specifically determined" and has a "significant impact" on housing prices. If the developer clearly designates a certain school and promises admission qualifications in the promotion, and the buyer can prove that there is a significant premium in the housing price as a result, the court may determine that it constitutes a breach of contract or contractual negligence. But if it is only vague statements such as "surrounded by prestigious schools" and "adjacent to high-quality educational resources", the success rate of rights protection is relatively low.
Lawyer's suggestion: Before purchasing a house, verify the school district division policy with the education department and do not trust verbal promises from salespeople. If the sales clearly promise the school district, fixed evidence can be obtained through recording or WeChat chat records, and supplementary clauses of the contract can be required to be included.
5、 Fixed evidence and timing of lawyer intervention in the process of receiving the house
When high-end real estate projects receive properties, buyers are often required to sign the acceptance documents first and then inspect the property, which is legally disadvantageous to buyers. The correct process is to inspect the house first and then sign for it. Any problems found should be recorded in writing and the developer should be required to rectify them within a specified period of time.
If a dispute has already occurred, the best time for a lawyer to intervene is the first time the problem is discovered, not during the litigation stage. Lawyers can assist in reviewing contract terms, sending lawyer letters, participating in negotiations, applying for evidence preservation, and initiating litigation or arbitration if necessary. In disputes over sales contracts of commercial housing, the statute of limitations for litigation is three years, starting from the date when the buyer knew or should have known that their rights were infringed. Buyers should not delay.
Guangdong Zhiming Law Firm has long acted as an agent for disputes arising from the sale and purchase of commercial housing contracts, property rights protection, and claims for breach of contract by developers. We can provide full process legal services for homebuyers, including contract review, house inspection, negotiation and mediation, litigation and arbitration. Whether it is high-end real estate projects in first tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen, or real estate projects in other parts of the country, buyers should promptly consult professional real estate lawyers and use legal means to protect their assets when encountering problems such as false publicity, reduced delivery, and overdue delivery.
