Real Estate Perspective... The owner's failure to handle the title certificate in time may constitute a breach of contract!
Published:
2024-04-03
By analyzing the causes of the case and the adverse consequences of the owner's failure to handle the real estate certificate in time, the author reminds the owner to handle the real estate certificate in time in order to make the property right of the house used by his own residence clear and avoid unnecessary disputes.
Case Introduction
In 2015, a real estate company in Anxi sold the houses in a community it developed to owners such as Su, and the owners such as Su signed the "Commercial Housing Sales Contract" and its supplementary attachments with the developer. After Su and other owners respectively for their own purchase of housing loans, Anxi a real estate company as a guarantor, for Su and other owners to apply for mortgage loans to provide guarantee responsibility. For this reason, in order to protect its own rights and interests, a real estate company in Anxi notified Su and other owners to go to the real estate registration center to go through the relevant ownership registration procedures in time through various methods such as telephone, text message, WeChat, etc., when the house involved in the case has the conditions for handling the certificate. However, Su and other owners have been delaying processing. In March 2022, a real estate company in Anxi sued Su and other owners to the court, asking Su and other owners to immediately assist in the registration of the ownership of the house involved in the case, and pay liquidated damages for overdue certification at 10% of the total contract price. After receiving the complaint, evidence and other materials of a series of cases, the Chengguan Court of Anxi Court communicated with Su and other owners, managers of a real estate company in Anxi, and entrusted litigation agents by telephone many times, and explained the law. In the end, some owners reached a mediation agreement with the developer under the mediation of the court, and actively cooperated with the registration of property rights. The rest of the owners expressed their understanding of the developer, willing to actively cooperate with the real estate certificate, and negotiate with the developer to deal with it, and the developer withdrew the lawsuit. In the end, all 7 series of cases were closed by mediation and withdrawal.
In judicial practice, there are more cases in which owners sue developers for housing property certificates, and cases in which developers sue owners for housing property certificates are relatively rare. However, around 2021, Jiangsu, Fujian and other regions accepted hundreds of such cases. After the cases were accepted, after the court patiently and carefully explained and explained to the owners, most of the owners expressed their understanding and actively handled the housing property certificate. The case was closed by withdrawing the lawsuit; a small number of owners, under the coordination of the court, finally handled the housing property certificate or reached a mediation agreement with the developer due to tax or time issues; A very small number of owners ignored the contract agreement between the two parties and did not handle the real estate certificate. The court made a judgment in time. In such cases, the vast majority of cases are closed by withdrawal, and a few are closed by mediation and judgment.
By analyzing the causes of such cases and the adverse consequences of the owner's failure to handle the real estate certificate in time, the author reminds the owner to handle the real estate certificate in time in order to make the property right of the house used by his own residence clear and avoid unnecessary disputes.
1. the main causes of such cases
1) The banking aspect
When the owner buys the house, he usually makes a mortgage loan. When the bank lends, the house has not yet gone through the formal property right registration, and it is also impossible to register the mortgage right, which increases the risk of the bank recovering the loan. As a result, banks usually require developers to act as guarantors to provide joint and several guarantee liability for the owner's loans before the house has a mortgage warrant. If the owner is overdue in repaying the loan before the mortgage warrant is processed, the bank has the right to require the developer to bear joint and several repayment liabilities. Therefore, whether the owner for housing property rights registration, affecting the developer to ensure that the responsibility.
2. Owners
In real life, even if the owner does not go through the property rights registration procedures, it does not seem to have much impact on his actual residential use or external rental of houses, and the registration of property rights requires the payment of relevant taxes and fees and a certain amount of time, so the owner is lazy in handling the property rights registration. For a long period of time, developers rarely sued the owners for property rights registration. Therefore, the owners believed that whether the property rights registration of the houses they purchased had nothing to do with the developers. They did not pay attention to it when they received a written reminder from the developers and delayed it.
3. Developers
Compared with all the owners, the owners who have overdue loan repayment are after all a small number, and some of the owners have already registered their property rights, and the developer's guarantee liability has been exempted. Therefore, the proportion of the total number of owners who have been sued by the bank to the court is relatively low, and some of the cases brought to the court are settled by mediation and withdrawal, Therefore, developers have not paid enough attention to this for a long time. In addition, it is difficult for developers to accurately predict which uncertified owners will repay their loans overdue, so they cannot carry out targeted litigation, increasing litigation costs.
2. owners do not handle the housing property registration in a timely manner, the existence of adverse consequences
1. Owner
(1) It is the contractual obligation of the owner to handle the house title certificate within a reasonable time. If it is not handled in time, it may be sued by the developer and will eventually bear the liability for breach of contract;
(2) If the property right registration is not handled in time, the house that the owner has purchased may also be sealed up by the judicial organ due to the developer's debt dispute. Even if it is unsealed through legal procedures such as the implementation of objections, additional costs will inevitably be incurred;
(3) if the property right certificate is not handled in time, the property right of the house purchased by the owner is not clear, which may lead to unnecessary disputes, such as the confirmation of the right of the house caused by "selling more than one house" and the division of the house between interested parties.
2. Developers
(1) After the developer is passively involved in the lawsuit, once he loses the lawsuit, he faces the consequences of being directly deducted from the property;
(2) In the course of litigation, property such as bank accounts under its name may be seized or frozen, affecting the normal flow of funds and not conducive to the normal operation of the enterprise;
(3) The developer hires a lawyer for this purpose to participate in the litigation, which will incur certain additional costs. Even if the developer has the right to recover from the owner afterwards, a series of necessary legal procedures such as litigation and execution are over, and the time and economic costs cannot be ignored.
3. Other aspects
Only when the owners handle the registration of housing property rights in time can the relevant departments accurately grasp the real information of housing ownership, which is not only conducive to the relevant interested parties to inquire about the real information of housing ownership, reduce the occurrence of social contradictions and disputes, but also facilitate the relevant departments to carry out necessary and effective management and regulation according to the changes of objective information, so as to promote the development of social economy.
In summary, the owner's failure to register the property rights of the house in time obviously does more harm than good, which is not only detrimental to the protection of the owner's own rights and interests, but may also constitute a breach of contract. Developers are passively involved in bank loan disputes, affecting the normal operation of enterprises. Therefore, the owner should fulfill the obligation of property registration in time according to the contract between the two parties, avoid the occurrence of the above-mentioned adverse consequences, realize the win-win situation between the owner and the developer, and promote social stability and development.
Lawyer's statement
Buying a house is a major event in life. You should not relax your vigilance when signing a house purchase and sale contract. You need to pay more attention when signing, understand the content of the contract, and carefully review the main body of the contract, house information, expenses, and liability for breach of contract. Be in a passive position in the process of contract performance.
A legally established contract is legally binding on the parties. In the above cases, Su and other owners respectively signed the "commercial housing sales contract" and its supplementary attachments with the real estate company, which is the true intention of both parties. The part that does not violate the mandatory or prohibitive provisions of laws and regulations should be protected by law. Both parties shall fully perform their respective obligations in accordance with the contract. According to the contract, when the real estate company has the conditions for applying for a certificate, it will notify Su and other owners to go to the real estate registration center to go through the relevant ownership registration procedures in a timely manner through various methods such as telephone, text messages, WeChat, etc., but Su and other owners have been delaying Processing constitutes a breach of contract and should bear the corresponding liability for breach of contract.
The lawyer reminded that the owner's timely handling of the real estate certificate of the house is not only to fully perform the obligation of the contract, but also to make the property rights of the house used by the owner clear and avoid unnecessary disputes.
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