Perspective | Delayed Handover of Property ≠ Contract Termination! Why Did the Court Reject the Claim?
Published:
2025-03-03
In recent years, disputes over commodity housing sales contracts have become frequent, especially issues such as delayed delivery and delays in obtaining property certificates, which often lead to lawsuits from buyers requesting contract termination. This article combines five recent cases in Shandong Province since 2024, organizes the court's judgment ideas, extracts practical key points, and provides legal risk prevention guidance for buyers and developers.
In recent years, disputes over commodity housing sales contracts have been frequent, especially issues such as delayed delivery and delays in obtaining property certificates, which often lead to lawsuits from buyers requesting contract termination. This article combines five recent cases in Shandong Province since 2024, outlines the court's judgment thinking, and extracts practical points to provide legal risk prevention guidance for buyers and developers.
I. Basic Information and Key Points of the Cases
1. Case 1 (Feng Moubing and Li Moufang case)
Case Number: (2024) Lu 1791 Minchu 3873
Cause of Action: Dispute over commodity housing sales contract
Judgment Date: 2024.07.23
Court: People's Court of Heze Economic Development Zone, Shandong Province
Judgment Result: Support for contract termination.
Key Reason: The developer delayed delivery for more than 60 days beyond the contract agreement and failed to complete comprehensive acceptance, constituting a fundamental breach of contract, which directly affects the realization of the contract's purpose. The court ruled to terminate the contract and related loan contracts based on Articles 20 and 21 of the "Judicial Interpretation of Commodity Housing Sales Contracts," and required the developer to return the purchase price, pay interest, and liquidated damages.
Insight: When the termination conditions are clearly stipulated and the breach is serious, the court tends to support contract termination.
2. Case 2 (Cao Mou case)
Case Number: (2024) Lu 0285 Minchu 8116
Cause of Action: Dispute over commodity housing pre-sale contract
Judgment Date: 2024.12.23
Court: People's Court of Laixi City, Shandong Province
Judgment Result: Support for liquidated damages, but did not terminate the contract.
Key Reason: Although the developer delayed delivery, the contract only stipulated liquidated damages. Although the plaintiff requested contract termination, the court ruled to pay liquidated damages based on the contract agreement but did not support the termination request.
Insight: The design of contract terms directly affects the remedy method; liquidated damages and the right to terminate must be clearly distinguished.
3. Case 3 (Sun Mouliang case)
Case Number: (2024) Lu 1391 Minchu 2944
Cause of Action: Dispute over commodity housing pre-sale contract
Judgment Date: 2024.11.30
Court: People's Court of Linyi High-tech Industrial Development Zone, Shandong Province
Judgment Result: Rejected the termination request.
Key Reason: The developer delayed the processing of the property certificate but has since remedied it, and it did not affect the buyer's final acquisition of property rights; the purpose of the contract can still be realized. The court emphasized the need to comprehensively consider the relationship between the breach and the purpose of the contract.
Insight: Non-fundamental breaches (such as procedural defects) are usually insufficient to support contract termination.
4. Case 4 (Yin Mougao case)
Case Number: (2024) Lu 1391 Minchu 1730
Cause of Action: Dispute over commodity housing pre-sale contract
Judgment Date: 2024.08.14
Court: People's Court of Linyi High-tech Industrial Development Zone, Shandong Province
Judgment Result: Rejected the termination request.
Key Reason: Severe pollution weather was recognized as force majeure, the developer notified of the delay and took remedial measures, and the house ultimately met the delivery conditions. The court found that the force majeure exemption was established, and the contract could still be performed.
Insight: The burden of proof and notification obligations for force majeure are key to exemption.
5. Case 5 (Zhai Moumeng case)
Case Number: (2024) Lu 1391 Minchu 1200
Cause of Action: Dispute over housing sales contract
Judgment Date: 2024.06.20
Court: People's Court of Linyi High-tech Industrial Development Zone, Shandong Province
Judgment Result: Rejected the termination request.
Key Reason: The combination of the COVID-19 pandemic and severe pollution weather constituted force majeure, the developer had no subjective fault, and the house was ready for delivery. The court emphasized that the stability of the contract takes precedence over minor breaches.
Insight: Multiple force majeure factors may reduce the developer's liability, making the threshold for contract termination higher.
II. Core Considerations in Court Judgment Logic
1. Clarity of Contract Terms
Whether the termination conditions are specific (such as the number of overdue days, consequences of breach) directly affects the judgment result.
If the contract does not clearly stipulate the right to terminate, the court may only support liquidated damages (as in Case 2).
2. Severity of Breach
Fundamental breaches (such as delayed delivery leading to long-term inability to move in) support contract termination; non-fundamental breaches (such as slight delays in property certificates) usually do not support termination.
The court will examine whether the breach substantially affects the purpose of the contract (as in Cases 3 and 4).
3. Determination and Proof of Force Majeure
Natural disasters, pandemics, government regulations, etc., may constitute force majeure, but the developer must notify promptly and provide evidence (as in Cases 4 and 5).
Force majeure exemption must simultaneously meet the three requirements of "unforeseeable, unavoidable, and insurmountable."
4. Realistic Possibility of Contract Performance
If the house is ready for delivery or can be remedied (as in Case 3), the court tends to maintain transaction stability and does not support termination.
III. Practical Suggestions: "Dual Perspective" Strategy for Preventing Disputes
For Buyers:
1. Detail termination clauses when signing: Clearly stipulate termination conditions (such as overdue delivery days, calculation methods for liquidated damages) to avoid vague expressions.
2. Exercise rights in a timely manner: After discovering a breach, a written notice should be sent within a reasonable period (as in Case 1), and delivery evidence should be retained.
3. Rationally assess the impact of the breach: Non-fundamental breaches can claim liquidated damages, and blindly terminating the contract may be rejected (as in Case 3).
For Developers:
1. Improve the contract exemption clause: clarify the scope and handling procedures of force majeure, and agree on a reasonable extension period for delivery.
2. Actively fulfill the notification obligation: in the event of force majeure, notify the buyer in writing as soon as possible and attach proof documents (such as cases 4, 5).
3. Prioritize remedy rather than delay: even in the presence of force majeure, active remedial measures should be taken to avoid further losses.
Four, key points of litigation practice (key evidence from both parties)
1. Evidence that the buyer (plaintiff) may provide and the purpose of proof:
(1) Real estate sales contract
Purpose of proof: Confirm the contractual relationship between both parties and specific terms (such as delivery time, quality standards, liability for breach of contract, etc.).
(2) Payment receipts (down payment, loan records, etc.)
Purpose of proof: prove that the payment obligation has been fulfilled, and the developer has not performed the delivery or other obligations as agreed.
(3) Delivery notice, reminder letter: prove that the developer has not delivered on time and the buyer has made reminders.
Calculation of overdue days: if the contract stipulates that overdue can terminate the contract, it must be proven to meet the conditions.
(4) Inspection report, third-party appraisal report: prove that the house has structural defects or serious quality issues (such as leaks, cracks).
(5) Photos, videos: visually display quality issues.
(6) Repair records: if the developer has not resolved the issue after repairs, it supports fundamental breach.
(7) Evidence of false advertising - advertising materials (brochures, videos, sales commitment recordings): prove that the developer has false or misleading advertising.
(8) Comparison of actual house and advertising: such as promised school district, supporting facilities not fulfilled.
(9) Evidence that the developer has not obtained legal licenses.
Missing pre-sale permit: claim that the contract is invalid or illegal.
Missing completion acceptance record: prove that the house does not meet the legal delivery conditions.
(10) Evidence of losses (rent, interest, etc.) - rental contract, transfer records: prove the additional costs incurred due to overdue delivery.
(11) Notice of contract termination and proof of delivery - written notice, mailing receipt: prove that the right to terminate has been exercised in accordance with the law.
2. Evidence that the developer (defendant) may provide to refute and the purpose of proof.
(1) Performance evidence
Completion acceptance record, quality certificate: prove that the house meets delivery standards.
Delivery confirmation letter: prove that the buyer has received the house and has not raised objections (or mailing proof, proving that the delivery obligation has been fulfilled).
(2) Force majeure or exemption reasons - government documents (such as epidemic control notices, of course, it also needs to combine supervision logs and other materials to restore the facts): claim that the overdue delivery is due to force majeure.
(3) Third-party liability evidence (such as construction party delays): transfer part of the breach responsibility.
(4) Evidence of buyer's breach - overdue payment records, collection notices: counterclaim that the buyer has not fulfilled the payment obligation.
(5) Contract terms: such as stipulating that the buyer has no right to unilaterally terminate the contract.
(6) Defense against false advertising - contract exemption clause: note "advertisement for reference only, subject to the contract."
(7) Proof of consistency between actual advertising and the house: deny the existence of significant differences.
(8) Evidence of quality dispute handling - repair records, communication records: prove that the issues have been actively repaired, not constituting a fundamental breach; evidence that the buyer did not report repairs in a timely manner: claim that they failed to exercise their rights.
(9) Defense of timeliness or procedure - proof of overdue exercise of the right to terminate: such as the contract stipulates that the right to terminate must be exercised within 30 days.
(10) Lack of reminder procedure: claim that the buyer has not fulfilled the statutory reminder obligation.
(11) Objection to loss calculation - market rent assessment report: refute the buyer's claim that the rental loss is too high.
Of course, the actual house measurement report, as well as acceptance materials for water, electricity, heating, gas, fire protection, etc., can also serve as backup evidence, and even the "Notice of Deposit of Housing Maintenance Fund" and other materials can be submitted as evidence, provided that it is based on the contract terms that can exempt the developer from the responsibility for delayed delivery, etc.
Five, conclusion
Contract termination is the "last resort" in disputes over commercial housing, and the court always balances contractual freedom and transaction stability in its rulings. Whether it is the buyer or the developer, both should pay attention to the design of contract terms and the compliance of the performance process, proactively prevent risks, and avoid falling into passive litigation. If disputes have occurred, it is recommended to consult a professional lawyer in a timely manner to formulate the best strategy for the specific case.
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