How to Sign a Prefabricated House Contract

The signing of a prefabricated house contract (pre-contract) should follow the following steps and precautions:

I. Clarify the Nature and Purpose of the Agreement

The pre-contract is a preliminary agreement between the buyer and seller regarding a future house transaction, serving as an意向性协议 (intentional agreement) that does not replace the formal sales contract. Its core purpose is to confirm the transaction intent, agree on the time and conditions for signing the formal contract later (such as deposit and payment method), and provide legal protection for both parties. Note that the pre-contract may involve a deposit clause, and its nature should be clarified (e.g., a "deposit" has legal binding force, and违约 (default) may result in non-refundability).

II. Negotiate and Determine the Agreement Content

1. Basic Clauses

   • Party Information: Names, addresses, and contact information must be true and valid.
   • House Information: Location, area (including common areas), house type, orientation, etc., with a note that the area is subject to government verification results.
   • Transaction Conditions: Total house price, payment method (e.g., installment payment milestones: contract signing, commencement, structural completion), and handover time.
   • Deposit Clause: Amount (usually not exceeding 20% of the total price), payment method and time, and clarification of liability for breach (e.g., the buyer's deposit is non-refundable in case of default, and the seller's deposit is doubled in case of default).

2. Special Clauses

   • Loan Purchase: Agree on the responsibilities for loan application, approval, and disbursement, and how to handle it if the loan is not approved (e.g., convert to a one-time payment or terminate the contract).
   • Liability for Breach: Detail the compensation standards for scenarios such as overdue payment, overdue handover, and non-compliance with house quality.
   • Dispute Resolution: Prioritize negotiation or litigation and clarify the jurisdiction court.

3. House Ownership Verification

   • The seller must provide the 《商品房预售许可证》 (Commercial Housing Pre-sale Permit) and property ownership certificate to ensure that the house is free from rights restrictions such as mortgages and seizures.

III. Sign the Agreement

1. Review the Text: Read the clauses one by one, focusing on core content such as deposit, payment, handover, and liability for breach, avoiding vague expressions (e.g., "approximately" or "possibly").
2. Sign and Confirm: Both parties sign or stamp, ensuring that the signature matches the ID card, and may have it notarized or invite witnesses if necessary.
3. Retain Copies: After signing, each party retains one copy, and do not leave it with the other party for safekeeping.

IV. Follow-up Matters and Risk Prevention

1. Pay the Deposit: Retain proof of payment through bank transfer, avoiding cash transactions.
2. Prepare the Formal Contract: Sign the formal contract at the time agreed in the pre-contract, and it is recommended to have the terms reviewed by a lawyer.
3. Transaction Security: Pay funds through a third-party escrow account to prevent the seller from misappropriating them.
4. Timely Rights Protection: If the seller fails to sign the contract or hand over the house on time or if there are quality issues with the house, retain evidence and resolve it through legal channels.

Example Reference: Guangzhou requires the seller to present the 《商品房预售许可证》 (Commercial Housing Pre-sale Permit) before signing the pre-sale contract, and Guiyang requires information to be entered into the online contract system before printing the formal contract. Before signing, refer to local model texts to ensure compliance.