Contract for Sale of Prefabricated Houses

The types and core contents of contracts for the sale of prefabricated houses need to be distinguished based on the nature of the houses, mainly divided into two categories: commercial housing pre-sale contracts and small-property-right housing sales contracts:

I. Commercial Housing Pre-sale Contracts (for pre-sale of houses under construction)

1. Definition and Nature
   It is a type of sales contract with houses under construction as the subject matter. Ownership of the house is transferred upon completion. It is regulated by the 'Measures for the Administration of the Pre-sale of Urban Commercial Housing' and is distinct from reservation contracts and futures sales contracts.

2. Contract Content Requirements
   It must include the elements specified in Article 596 of the 'Civil Code', such as the location of the house, architectural form and area, price amount and pricing standards, payment time and method, and other core clauses.

3. Payment Methods
   It is divided into two parts: installment payments of self-prepared funds and loans. Self-prepared funds are paid according to the progress of the project. The payment methods for the house price include one-time payment in full, installment payments, or methods agreed upon by both parties, allowing homebuyers to make payments in stages.

4. Conditions for House Return

   • Design changes affect the usability (e.g., the addition of large steps to a shop);
   • The seller delays the delivery of the house or lacks valid certificates, rendering the contract invalid;
   • Inability to obtain a property certificate, an absolute value of the house area error ratio exceeding 3%, or substandard house quality.

5. Other Clauses

   • Standards for liquidated damages for overdue delivery and one-year quality guarantee responsibilities;
   • Division of responsibilities when the contract cannot be fulfilled due to purchase restrictions;
   • Property registration fees are borne by the buyer, and the documents are uniformly handled by the seller's entrusted scrivener.

II. Small-Property-Right Housing Sales Contracts (for houses without legal property rights)

1. Prerequisites for Contract Formation
   The contract is formed on the basis of equality, voluntariness, and mutual agreement between both parties.

2. House Information and Price
   Clearly state the location, building area, and price of the house (including the area and price of the basement).

3. Deposit Clauses
   After the buyer pays a deposit, if the seller reneges, double compensation is required; if the buyer reneges, the deposit is non-refundable.

4. Transfer of Ownership and Taxes
   When the conditions for transfer of ownership are met, the seller assists in handling the property rights procedures; the deed tax and land transfer fee are borne by the buyer, and other taxes are shared according to legal provisions; the buyer needs to pay the house price in full at once.

5. Transfer of Rights and Residential Obligations
   The seller transfers the rights to use, benefit from, and rent the house to the buyer; the buyer needs to pay property management fees on time, and the seller shall not enter into a sales contract for the house with others.

6. Liability for Breach of Contract

   • Overdue delivery or payment: Liquidated damages are calculated at 0.1% of the total house price per day. If the overdue period exceeds the limit, the contract can be terminated, and damages shall be compensated;
   • House quality issues: The seller is responsible and compensates the buyer for losses;
   • Contract termination: When terminated due to major objective reasons, the seller returns the house price at the market appraisal value and compensates for decoration expenses;
   • Planning issues: If quality or functional issues are caused by the design department, the seller needs to refund the compensation.

7. Dispute Resolution and Effectiveness
   Disputes shall be resolved through consultation first. If consultation fails, arbitration or litigation can be pursued; the contract takes effect from the date of signature or seal by both parties, and supplementary agreements can be made for matters not covered herein.