Legal information

As long as the agreement in the contract is reasonable, the court will decide the case based on the contract. If 20% liquidated damages is reasonable for the case, a judgment will definitely be issued. So is it valid to award 20% compensation to the buyer of a second-hand house for breach of contract? Let’s take a look as lawyer Ying Ting explains it to you.

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Is it valid to award 20% compensation to the buyer of a second-hand house for breach of contract?
Valid Generally speaking, it is legal for a second-hand house buyer to award 20% compensation for breach of contract, and 20% is the higher standard for liquidated damages. In fact, the law does not have strict restrictions on this. As long as it is fair, the court will make a judgment in accordance with the contract. The buyer and seller of the house negotiate to determine the amount of liquidated damages according to their own wishes, and the agreement is valid.

Generally speaking, if there is a breach of contract signed during the sale and purchase of a second-hand house, the liquidated damages will be determined by the buyer and the seller according to their own wishes. After the contract is terminated, the deposit collected (20% of the total price) will not be refunded. That is why it is said that the buyer of a second-hand house will be compensated 20% for breach of contract, but not all buyers of second-hand houses will be compensated 20% for breach of contract, depending on the content of the contract and agreement.

It also depends on whether you have paid a deposit or a deposit. Generally speaking, a deposit is a form of legal guarantee as a monetary guarantee for the performance of the contract. It is common in sales contracts and is clearly stipulated in the Contract Law, the Guarantee Law and its judicial interpretations, and the legal conditions are strict:
(1) The deposit must be agreed in writing;
(2) The deposit must be actually delivered;.

(3) The amount of the deposit shall not exceed 20% of the total amount of the contract. The deposit does not have the nature of a down payment. It is usually a temporary subscription agreement signed by the buyer and seller after they have reached a preliminary intention on the sale of the house and are ready for further negotiation. If you still want to know more relevant information, you can consult lawyer Ying Ting for one-on-one online consultation.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail.