Ying Ting Information

After signing a subscription agreement, if the party receiving the deposit fails to perform its debts or performs the debts inconsistently with the agreement, the deposit paid after purchasing the house can be refunded, but the precautions for signing a house subscription agreement must be considered on a case-by-case basis.
1. Signing a subscription letter is not a prerequisite for signing a sales contract. It is not a necessary procedure for purchasing commercial housing. Try not to sign a subscription letter with a developer;

2. Try to avoid deposit terms and use advance payment terms instead of deposit terms;
3. Home buyers are not allowed to agree with the developer that the advance payment or subscription fee will be "confiscated", "non-refundable", etc. This clause is actually a liquidated damages clause for the buyer's unilateral breach of contract. The developer has a trap here. As long as the buyer does not sign a formal sales contract with the developer, no matter what the reason is for the buyer's breach of contract, the developer will confiscate the subscription fee and will not refund it;

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4. When looking at a house, buyers usually ask some questions based on their special concerns, and the developer will give corresponding answers. The developer's answers can be written in the subscription letter.
5. Write the advantages introduced by the developer or salesperson into the subscription letter
6. Don’t use vague concepts, agree on price terms in the subscription letter, don’t use “average price”, “preferential price”, “discounted price”, etc., and be accurate to the specific amount of the unit price.

Legal basis: "The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Commercial Housing Sales Contract Disputes" Article 4 If the seller receives a deposit from the buyer through subscription, ordering, reservation, etc. as a guarantee for the conclusion of a commercial housing sales contract, if the commercial housing sales contract cannot be concluded due to reasons of one of the parties, it shall be handled in accordance with the legal provisions on deposits;
If the commercial housing sales contract cannot be concluded due to reasons that cannot be attributed to both parties, the seller shall return the deposit to the buyer.

Article 115 of the "Contract Law of the People's Republic of China" [Deposit] The parties may agree in accordance with the "Guarantee Law of the People's Republic of China" that one party shall pay a deposit to the other party as a guarantee for the debt. After the debtor performs its debt, the deposit shall be used as the price or recovered. If the party who paid the deposit fails to perform the agreed debt, he shall not have the right to request the return of the deposit; if the party receiving the deposit fails to perform the agreed debt, double the deposit shall be returned.

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 with Beijing Demolition Lawyers Network Yingting Law Firm for one-on-one online consultation.