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Can the deposit paid for buying a house be refunded?

2015-09-29View Original

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Can the deposit paid for buying a house be refunded? If the developer says they won’t sell the house and returns the deposit, can one ask the developer for compensation? If I no longer want it, how much of the deposit can usually be refunded?
Reply #22015-09-29
Of course it can be refunded. It depends on how much you paid, and whether it was you who broke the contract or the developer ~
Reply #32015-09-29
It’s one’s own fault for breaking the contract; according to the subscription agreement, there is no possibility of a refund.
Reply #42015-09-29
It cannot be refunded. Although the terms \"deposit\" and \"advance payment\" sound the same, there is a fundamental difference between them.   ““A deposit” refers to a certain amount of money that the parties agree to be paid by one party to the other as security for a claim; it constitutes a legal form of guarantee aimed at prompting the debtor to fulfill their obligations and ensuring that the creditor’s rights can be realized. When signing a contract, the deposit must be specified in writing, along with its amount and the deadline for its payment. If the party that pays the deposit fails to fulfill its obligations, it has no right to demand that the other party return the deposit ; If the party that receives the deposit fails to fulfill its obligations, it must return twice the amount of the deposit to the other party. After the debtor fulfills its obligations, as agreed, the deposit shall be applied toward the price or refunded.   Currently, Chinese law does not provide clear regulations regarding \"deposit\"; it does not possess the guarantee function associated with a deposit, and can be regarded as a \"prepayment\". When the contract cannot be fulfilled, except in cases of force majeure, liability for breach of contract shall be borne according to the faults of both parties.   Special note: Not all “deposits” cannot be refunded. Article 22 of China’s Measures for the Administration of Commercial Housing Sales stipulates that if the conditions for selling commercial housing are not met, developers shall not sell such housing nor collect any fees of a booking nature. Therefore, if the commercial property does not meet the conditions for sale and the buyer has already paid a \"deposit,\" then regardless of whether the two parties have agreed on the return of the deposit, the developer must unconditionally return it to the buyer. Furthermore, in accordance with Article 4 of the \"Interpretations of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Disputes over Contracts for the Sale of Commercial Housing,\" if a contract for the sale of commercial housing fails to be concluded due to reasons not attributable to either party, the seller is also required to return the deposit
Reply #52015-09-29
First of all, what you mentioned is a deposit, not an advance payment; a deposit cannot be refunded. Generally, the deposit can be refunded, but this is not absolute; it depends on what the two parties agree upon. Developers usually specify a deposit amount in the subscription form, and from what I’ve seen, that amount is quite small, unless the apartments in that development are not having any trouble selling. If it’s you who breaks the contract, then it’s highly likely that you won’t be able to get your money back. Even if you can get some refund, it will be difficult to get the full amount back. Still, it’s worth giving it a try, after all, the down payment is also a significant amount of money. Additionally, it is necessary to find out whether the contract has been registered. If the registration is successful, the housing authority usually notifies you via text message or phone call. If the developer has already completed the registration on the housing authority’s website, then the registration must be canceled by the housing authority in order to return the property; failing to do so will affect your ability to purchase a property in the future.
Reply #62015-09-29
You have breached the contract, so there is no refund; If the other party breaches the contract, double repayment can be demanded.
Reply #72015-09-29
As far as I know, unless someone from the developer or from the housing authority is related to your aunt by seven degrees or something like that, you can definitely get your money back if you spend some money, pay a deposit, and get a discount!
Reply #82015-09-29
If I don’t buy it, the developer wants to take back the subscription form in duplicate; they won’t refund any part of the deposit. Can’t I just refuse to give it to them?
Reply #92015-09-29
China’s Contract Law stipulates that the purpose of a deposit is such that if the party receiving the deposit breaches the contract, it must return twice the amount of the deposit; if the party paying the deposit breaches the contract, the deposit is not refundable. However, the amount of the deposit cannot exceed 20% of the price of the subject matter, with any excess amount being considered as an advance payment only.
Reply #102015-10-07
If you break the contract, the developer may not refund the deposit. If the developer breaches the contract, you can claim compensation equal to twice the amount of the deposit.

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