Need legal assistance on a potential complicated housing sale transaction!

I have a potential sticky situation here.. send me a private msg with a number i can call and we can discuss.. willing to compensate if situation gets serious! please read! thanks!


I am in a situation here that i don't need a lawyer yet, but may need so if the situation gets worse. Let me explain the situation, and perhaps we can talk over the phone to discuss more if its necessary.


I currently live i Hong Kong, but used to live in Shanghai in an apartment in Lujiazui. I've owned this apartment since January 2006 and recently agreed to sell the apartment to a couple. The agreed sales price was 4,400,000 rmb. We signed the initial agreement to sell the apartment and i received the initial deposit of 50,000 rmb. Now i went home for vacation and came back early to sign the official contract and notorize it which we did in front of a notary person and also at the bank. The couple asked me if they could move in early before the transaction went through and i told them this was ok, because they wanted to do renovations and move in before Chinese New Year. I understand, that this was a kind gesture on my side the apartment was still owned by me. Now, originally was supposed to get my second installment of 1,000,000rmb before they moved in early but i again was kind to give them the keys and wait a couple days for SAFE to send their approval for the money to come from abroad. (the buyer was a foreigner).


Now here is the situation:

The couple has refused to give me the installment of 1,000,000rmb even afer signing the notorized purchase agreement. My understanding is that technically the buyer doesn't have legal rights to move in until the seller receives the full amount from the bank (which usually takes 20 days). However i didn't receive even the 2nd upfront payment! and allowed the couple to move in.


They claim that there was a "serious leak" in the floor heating system that was installed by myself in the house. Now, i was not aware of their claim of the leak until after i investigated this issue further and found out that the apartment below did supposedly claim about a leak to my tenant. THerefore, the couple told me to fix this issue before they could give the second payment.


My issue here is that 1) i came with three independent engineers who said that they can not confirm if there is even a leak at all, or if its the floor heating system that's responsible for the leak. and 2) since the buyer has signed the contract already, after visiting the apartment 3 times before taking delivery, they should go forward with the contract right? Also, i allowed them to move in early before even getting payment. They can't do this right?


I've proposed that i would compensate them fully and commit to writing for any damages or leaks that they do indeed find as a nice gesture. I know that after signing the contract i'm not legally bound to do this right? i'm doing this as a nice guy.


I know in Hong Kong, that once a contract is signed, regardless of leaks, issues with the apartment, the buyers are legally binding to buy the apartment, or they forfeit their deposit. They must take the apartment "as is". Now this deposit is only 50,000 rmb, they claim that if they don't go forward with the transaction, they ALSO want this deposit back! I'm starting to think this couple has alterior motives (maybe because property prices are dropping) to stop this sale from happening.


I am desparate to know my rights. The couple are Chinese and i am a foreigner who thinks i'm being taken advantaged of. We can discuss more in if you send me a message with your contact. or if you know someone else who can help me, that would be great! also, i've documented all the evidence and events thoroughly as well. I want an amicable solution, but am afraid something wrong will happen.. please advise..


cheers,

JCC


also btw..


thanks.. actually, they gave me the key back and told ME to fix this "problem".. they also said this...


双方不再继续这件房屋购买" 但是，若我给一个律师谈这个事情，他告诉我，不管漏不漏是，合同签了


now that was in the contract.. but it seems to say that BOTH sides need to agree right? so if i agreed to fix this water leakage problem and compensate, do i owe them 2x the deposit?


this is extracted from the contract..


如甲方接受本协议所述买卖条件并签订本协议，则乙方已将本合约定金转付甲方。如甲方不继续执行此合约,、乙方有权向甲方进行索赔,赔偿金额为乙方交付 于甲方定金的双倍.

六、甲方接受本协议第三条所述买卖条件并签订本协议的，乙方同意在甲方签署本协议后___ 天内与甲方签订《上海市房地产买卖合同》或类似合同。如果乙方未能履行本条所述事项，则已支付甲方的定金不予返还。

八、甲方接受本协议第三条所述买卖条件并签署本协议的，甲方同意在签署本协议后___ 天内与乙方签订《上海市房地产买卖合同》或类似合同。如果甲方未能履行本条所述事项，则应向乙方双倍返还定金。

property law in PRC is new but you have all the codified (not statutory) rights to enforce. They have a right to defend also but they have to prove. u have a big problem in that u need to get a local attorney. i can try and find thro mainland (chinese) friends if u need

Hi chiedog,


What do you mean by saying:"the buyer was a foreigner" and "The couple are Chinese"? So, the couple are not the buyer? then who signed the contract with you?

In your case, if you help to fix the lease and still the couple refuse to fufill the rest payment, you can claim for damages and require them return the house without any compensation. Hope can help you somehow.


I'm in Shanghai, you can call me to discuss details.

My contact: 86-21-13817169022 (Linda Sun)