The 10,000 yuan per square meter of the shop was completed a few years later, but the developer asked the developer to pay another 20,000 yuan per square meter before handing over the house, which was unacceptable to 35 buyers including Mr. Tong in Jingdezhen, Jiangxi Province.
Leping Xincheng Square Farmers Market, below are shops, above are residences. Photo courtesy of the interviewee
During the period when the house was unfinished, the buyers had confirmed the true legality of the purchase of the shop through a lawsuit and a court judgment, but they still failed to protect their rights in many ways, and the effective judgment of the court could not be implemented for a long time, and they could not get the shops that should belong to them.
35 people spent more than 600 yuan to buy 9 shops, which were unfinished for 7 years
In 2014, Jiangxi Qingda Real Estate Development Co., Ltd. developed the Leping Xincheng Square Farmers' Market, "The house is a shop below, and a residence is above. According to Mr. Tong, in July 2014, 35 people, including him, signed a purchase agreement with Qingda Real Estate and purchased a total of 9 shops.
"As a county-level city, the house price in Leping City was two or three thousand yuan at that time, and the price of the shops was not high. Mr. Tong said that the price they bought was 10,000 yuan per square meter, with an area of about 600 square meters, and the two parties signed a purchase contract at that time, and 35 people paid all the house payments, and also signed online.
"The contract said that the house would be delivered at the end of November 2015, but what I didn't expect was that at the beginning of 2015, the project was unfinished. Mr. Tong introduced that in fact, the main body of the project was basically completed when it was suspended, and only some finishing work remained, but this shutdown was several years, and it was not resumed until 2022 and completed soon.
Photo courtesy of the interviewee
35 home buyers sued the court to confirm their rights and interests, and won the lawsuit but encountered difficulties in enforcement
According to Mr. Tong, because the project was almost completed when it was suspended, "we were worried about the change in the ownership of the house, so we filed a lawsuit with the court." Mr. Tong said that they hope to confirm the legality and validity of the "Commercial Housing Sales Contract" signed between them and the developer in accordance with the law through litigation, and order the developer to fully fulfill its contractual obligations.
Mr. Tong provided reporters with two verdicts, handed down in October 2016 and March 2017. In the judgment, the court found that the 15 persons represented by Ms. Peng and the 20 persons represented by Ms. Wang had signed the Commercial Housing Sales Contract with Jiangxi Qing Real Estate Development Co., Ltd The contract stipulates that the former purchased 4 shops, the latter purchased 5, and the two parties agreed that the unit price of the purchased commercial housing was 10,000 yuan per square meter, and the total area of the house involved in the two judgments was 668.32 square meters, and the total amount of 6,683,200 yuan was remitted to the pre-sale supervision account of Jiangxi Qingda Real Estate Development Co., Ltd. by transfer. The parties agreed that the seller should pass the acceptance of the commercial house and deliver it to the buyer for use before November 30, 2015. Subsequently, the defendant applied to the Leping Municipal Real Estate Administration Bureau for an online contract, but failed to deliver the agreed commercial house to the plaintiff in accordance with the contract. Although the former legal representative of Jiangxi Qingda Real Estate Development Co., Ltd. argued that he took advantage of his position to use the company's house to guarantee his personal loan in the form of sale, he did not provide evidence to prove it.
In the end, the courts of both cases ruled that the Commercial Housing Sales Contract signed by the two parties was legal and valid, and the defendant assisted the plaintiff in going through the formalities of registering the property rights of the house. According to the agreement, the defendant shall pay liquidated damages at the rate of 2/10,000 per day of the purchase price from December 1, 2015 until the delivery of the house.
According to Mr. Tong, after winning the lawsuit, they applied to the court for enforcement, but the court ruled in December 2017 that they had inquired about the judgment debtor's bank deposits, vehicle registration, real estate registration, enterprise registration, etc., and found no property available for enforcement by the court. The court interviewed the applicant for enforcement and asked him to provide clues about the property or the person subject to enforcement within a time limit, but the applicant for enforcement failed to provide them within the time limit and agreed to terminate the enforcement procedure. The court then ruled to terminate the enforcement proceedings. When the person subject to enforcement has property available for enforcement, the person applying for enforcement may apply to this court for resumption of enforcement in accordance with this ruling.
The purchased property is rented out by the seller and is required to pay twice the price of the house
"The project is about to resume in the first half of 2022. Mr. Tong said that since the project was basically completed, they submitted an application to the court to continue the implementation of the project after the resumption of work, but the procedure has not been initiated. The project was completed quickly, and as soon as it was completed, the developer began to ask for lease.
Photo courtesy of the interviewee
"On March 17, 2023, we found that someone was renovating the shop we bought, only to know that it had been rented out, and we called the police at that time. Mr. Tong said that at that time, the police said that since the court had already made a judgment, they could dispose of it according to the court's judgment, but when they approached the developer to negotiate the matter, they were told that they needed to pay 20,000 yuan per square meter, otherwise they could not deliver the house to them. The other party said that the market price of the house had risen, and they could sell it at a unit price of 30,000 yuan, and then return the money to Mr. Tong and other buyers.
"Even when the real estate is at its most prosperous, our shop here is more than 10,000 yuan, how can it be sold for 30,000 yuan?" Mr. Tong said, the other party actually proposed such an outrageous delivery condition and charged twice the price of the original contract price, which is a blatant violation of the law.
In the buyers' multi-party rights protection negotiations, the seller told them that the shops were rented out by the contractor of the project to collect money, because the developer owed the contractor the money, "This is even more outrageous, the developer owes others money, and uses our assets to pay off the debt, what is the reason!" Mr. Tong said.
Mr. Tong provided audio recordings of a number of buyers negotiating with the developer and the contractor, and one of the developer's staff members said that there were two ways to deal with the matter: one was for the buyers to pay 20,000 yuan per square meter and buy at a unit price of 30,000 yuan, and they would actively file for the record, and the other was to return the principal if they could not afford it, and the developer would resell it.
Mr. Tong said that before and after the completion of the project, they approached the court many times to ask for enforcement, but the staff of the court's enforcement department verbally told them that they were the government's intentions, "but then the mayor visited us, and we went to report the matter, and the mayor also said that since the court has decided, it will be handled according to the court's judgment." ”
The developer responded that the purchase relationship between the two parties was a mortgage loan under the purchase contract, but the local court did not respond
So, how did the developer respond to this matter?
"They borrowed money against the purchase contract. In this regard, the Huashang Daily Gale News reporter interviewed Mr. Wu, the person in charge of Jiangxi Qingda Real Estate Development Co., Ltd., hoping that he would respond to the situation described by Mr. Tong and other buyers, but the person in charge was unwilling to elaborate.
Later, the reporter tried to learn more about the matter from the Leping Municipal People's Court, but the two responsible persons and judges of the court's executive bureau in charge of the matter said that it was inconvenient to respond.
Home buyer responds to "mortgage loan" statement: "We didn't agree to do the loan"
So, what's the deal with mortgage borrowing?
"We didn't agree to make a loan, so we bought the house. Ms. Peng, another home buyer in the incident, said that there was indeed a problem with the funds of the developer of the project at that time, and she offered to borrow money from them. ”
Ms. Peng said that the developer did offer to borrow money at that time, but they did not agree to it due to risk considerations, but adopted a more secure way to protect their own interests and buy the shops of the project, "The location of this project is also relatively biased, and at the price of housing at that time, we bought it at 10,000 yuan per square meter is obviously higher than the market price." Ms. Peng said.
Ms. Peng believes that despite such circumstances, in the end, they are legally buying a house and should be protected by the law, and the subsequent court judgment also confirmed the legality and validity of the purchase of the house, regardless of the reason and motive, the developer's breach of contract is illegal. She hopes that both the developer and the local court can enforce the effective judgment of the court in accordance with the law to protect the legitimate rights and interests of their buyers.
The lawyer's statement: If the developer's practice is suspected of violating the law, the parties can apply to the court to resume enforcement, or they can report to the consumer association and the housing and construction department
"The developer's approach is clearly illegal. In this regard, Fu Jian, director of Henan Zejin Law Firm, said that the two parties signed the shop sales contract out of the true intention of both parties, and did not violate other laws and regulations, and the sales contract should be valid. The price of the shop is not significantly lower than the market price, there is a fair and true transaction between the two parties, and the two parties have not reached an agreement on the loan, and the sales contract between the two parties has been confirmed by the court as valid, and the developer shall bear the obligation to continue to perform in accordance with the judgment.
Fu Jian believes that the developer did not fulfill its contractual obligations and rented the shop to another person, which infringed on the legitimate rights and interests of the original purchaser. The suspension of work for several years was not due to the buyer, the developer refused to fulfill its obligations, lacked good faith, did not fulfill the effective judgment of the court, and ignored the authority of the law.
Fu Jian said that the original buyer's shop sale contract has been ruled valid by the court, and now the shop has been completed and can be put into use normally, and the buyer can apply to the court for resumption of enforcement in accordance with the original judgment, seal up and seize the property of the real estate, so as to urge the developer to fulfill its contractual obligations in a timely manner and go through the delivery procedures, and the developer should actively cooperate with the buyer to carry out the housing property registration procedures and compensate for the liquidated damages for the delay in performance. If the developer rents the house to another person, which infringes on the prior rights and interests of the buyer, the buyer can file a new lawsuit to demand that the developer stop the lease and compensate for the loss, and the buyer can also report to the consumer association, the housing and urban-rural development bureau and other departments to resolve the matter.
Huashang Daily Gale News reporter He Nan editor Li Zhi
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