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Developers exaggerate publicity, one ladder per household becomes two households and one ladder, the court: rescind the contract, pay back

author:Lawyer Zhou Xuliang

Before people buy a house, the first contact is often the developer's publicity and advertising. Only after screening meets psychological expectations, will go to the community field investigation. Many new houses have not yet been built, and brochures, model houses, house models, etc. have become the key to buyers deciding whether to buy a house. So, if the developer exaggerates the publicity, and the buyer finds that the house is actually inconsistent with the publicity when handing over the house, how to protect his legitimate rights and interests?

Mr. Yang of Jinan, Shandong Province, signed a contract with the developer to purchase a three-bedroom and two-hall commercial house in a local community. Although the community is far from the city center, the apartment design is reasonable, and there is a kindergarten downstairs, and there is a primary school on the next street, which makes Mr. Yang very satisfied.

Developers exaggerate publicity, one ladder per household becomes two households and one ladder, the court: rescind the contract, pay back

After more than a year of waiting, it was finally time for the agreed delivery. During the inspection, Mr. Yang found that there were quality problems such as door frames and uneven edges of window frames. Moreover, the one-household ladder originally advertised by the developer has now become two households and one ladder, which makes Mr. Yang very angry. He feels that the quality of the houses delivered by the developer is not up to standard, and the structure is not in line with the propaganda, is this not fooling consumers?

In order to safeguard his legitimate rights and interests, Mr. Yang sued the developer to the court, demanding that the Contract for the Sale and Purchase of Commercial Housing be terminated, the down payment of the house he had paid, the principal and interest of the loan repaid, and the liquidated damages and the difference in price for re-purchasing the house.

At the trial, the developers said they never advertised one household and one ladder as a selling point. The house purchased by Mr. Yang was originally a two-family and one-ladder design, which is very clearly recorded in the house floor plan attached to the "Contract for the Sale and Purchase of Commercial Housing" signed by the two parties. Since Mr. Yang signed the contract, on behalf of him, he knew the design and construction of the house, and they did not breach the contract.

Developers exaggerate publicity, one ladder per household becomes two households and one ladder, the court: rescind the contract, pay back

Hearing the developer's defense, Mr. Yang almost fainted. Fortunately, he had already prepared and submitted the previous developer's leaflets, brochures, housing quality assessment reports and other materials, as well as screenshots of WeChat chats with salespeople, house photos and other evidence to the court.

After trial, the court held that Mr. Yang claimed to terminate the Contract for the Sale and Purchase of Commercial Housing signed with the developer, and the evidence submitted could form a complete chain of evidence, which was enough to prove that the developer did use "one household and one ladder" as a publicity selling point in the early stage. However, the actual delivery of the house by the developer is not a ladder per household, which is quite different from the advertisement.

Although Mr. Yang signed and stamped the Contract for the Sale and Purchase of Commercial Housing, the floor plan of the house attached to the developer did not give a detailed textual explanation. Considering that many buyers do not have professional real estate knowledge in practice, it is difficult to directly understand the actual situation of the house based on the floor plan. Therefore, the developer's defense is not enough to confirm that Mr. Yang clearly knew that the house he purchased was not one household and one ladder when signing the contract.

Developers exaggerate publicity, one ladder per household becomes two households and one ladder, the court: rescind the contract, pay back

In the end, the court ruled to terminate the Contract for the Sale and Purchase of Commercial Housing signed by Mr. Yang and the developer, and the developer needed to assist Mr. Yang in the cancellation of the online signature of the house, and at the same time return the down payment paid, the principal and interest of the loan that had been repaid.

Developers should adhere to the principle of good faith when selling houses and do not make exaggerated publicity that misleads consumers. When signing the purchase contract, it is also necessary to fully fulfill the obligation of prompting and explaining, so that the buyer can fully understand the information of the house purchased. Otherwise, in the event of a breach of contract, the buyer has the right to exercise the right to rescind the contract and claim compensation for losses.

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