Ying Ting Information

The deposit cannot be refunded if the down payment cannot be collected. If the home buyer performs in accordance with the contract, the deposit shall be regarded as the price or refunded;
Insufficient down payment is a personal factor of the home buyer, and the home buyer has no right to request the return of the deposit. Simply put, if the buyer wants to return the house, the reason is that the developer, for example, the developer’s five certificates are incomplete and the developer has not fulfilled its commitments in accordance with the deposit agreement. In this case, the buyer has a reasonable reason to request the return of the deposit. The deposit is only a collection of prepayment properties and does not have the nature of a deposit. Therefore, when the buyer signs the "Pre-Purchase Temporary Agreement", it is still in an uncertain form whether the buyer can establish the main contract as a formal pre-purchase contract, which is very different from the deposit contract. Therefore, the advance deposit is not a deposit, and the deposit rules certainly do not apply. The business areas of Yingting Lawyers Group include government-enterprise disputes, administrative compensation, enterprise demolition, mining suppression, administrative agreements, illegal construction, land transfer, BOT, PPT projects, investment promotion, administrative litigation, equity disputes, economic crimes, etc. The fundamental difference between a deposit and a down payment is that the deposit rule applies to deposits. If one party breaches the contract, both deposits should be returned or there is no right to claim the deposit. However, if this rule applies to the deposit, it will only have the effect of returning the money or offsetting the price.
Legal basis: Article 586 of the Civil Code: The parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. The deposit contract shall be established when the deposit is actually delivered. The amount of the deposit shall be agreed upon by the parties; however, it shall not exceed 20% of the subject amount of the main contract. The excess portion will not have the effect of the deposit. If the actual deposit amount is more or less than the agreed amount, it shall be deemed to have changed the agreed deposit amount. Article 587 If the debtor performs its debts, the deposit shall be used as the price or the party who paid the deposit shall recover the debt. If the party who paid the deposit fails to perform the debt or performs the debt inconsistently with the agreement, resulting in the failure to achieve the purpose of the contract, he shall not have the right to request the return of the deposit; if the party receiving the deposit fails to perform the debt or performs the debt inconsistently with the agreement, resulting in the failure to achieve the purpose of the contract, the deposit shall be returned in double the amount. The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail. If you want to know more about this, you can consult lawyer Ying Ting for one-on-one online consultation.