Legal information

Is the house purchase agreement valid if all five certificates are not available for commercial housing? Can the property be sold?
1. Invalid.
2. Developers can only sell houses after obtaining five certificates. The Civil Code stipulates that any contract that violates statutory mandatory provisions is invalid. Therefore, the house sales contract signed between the developer and the home buyer without the five-year certificate has no legal effect.

Can the deposit for a house with incomplete five certificates be refunded?
Of course, it can be refunded. If the five certificates of the house are incomplete and do not meet the sales conditions, and the developer breaches the contract, the deposit can be requested to be doubled. According to Article 587 of the Civil Code of the People's Republic of China: When 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 its obligations or performs its obligations inconsistently with the agreement, resulting in the failure to achieve the purpose of the contract, it has no 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.

"Measures for the Administration of Sales of Commercial Houses" Article 22 If the conditions for the sale of commercial houses are not met, the real estate development enterprise shall not sell the commercial houses and shall not charge the buyer any fees in the nature of reservation payment. If the conditions for the sale of commercial houses are met, and the real estate development enterprise collects fees in the nature of reservation money from the buyer before entering into a commercial house sales contract, the fees collected shall be offset against the purchase price when the commercial house sales contract is concluded; if the parties fail to conclude a commercial house sales contract, the real estate development enterprise shall return the fees collected to the buyer; if there is any other agreement between the parties, such agreement shall prevail.

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 one-on-one with a lawyer from Yingting Law Firm.