Prefabricated House Sales Contract

The prefabricated house sales contract is a pre-sale agreement signed between the buyer and the seller in real estate transactions, with the under-construction house as the subject matter. It is also known as the commercial housing pre-sale contract, and its core contents are as follows:

Contract Contents

According to Article 596 of the Civil Code of the People's Republic of China, the contract must include key elements of the subject matter. Specifically, it covers the agreed location, architectural form, and area of the house, clarifying the specific location of the house, the type of building structure (such as frame or brick-concrete), and the building area size. It also states the core clauses such as the amount of the house price, the pricing standard, and the payment time and method, for example, whether the price is calculated based on the building area or the usable area, and whether the payment is made in installments or in a lump sum.

Payment Methods

Payment methods are divided into two parts: installment payment of self-prepared funds and loans. The self-prepared funds are paid in installments according to the progress of the project. Homebuyers can make payments at different stages of house construction, such as the completion of the foundation and the capping of the main structure. The payment methods for commercial housing sales mainly include lump-sum payment, installment payment, and other forms agreed upon by both parties. Installment payment allows homebuyers to pay the house price in stages according to the progress of the project construction, reducing the financial pressure on homebuyers.

Conditions for House Return

Construction must be carried out in accordance with the approved drawings. If a design change affects the usability, such as the addition of large steps inside a shop, the buyer may claim to terminate the contract. In addition, the buyer also has the right to return the house in cases where the seller delays the delivery of the house, lacks valid certificates leading to the invalidity of the contract, is unable to obtain the property certificate, the absolute value of the area error of the house exceeds 3%, and the house quality is unqualified.

Other Regulations

Both parties agree on the standard for liquidated damages for overdue delivery of the house, and the seller assumes a one-year quality guarantee responsibility after the house is delivered. The contract also stipulates the division of responsibilities between the two parties in case of non-performance due to purchase restriction policies, as well as the legal consequences after waiving the claim for liquidated damages. The property registration fee is borne by the buyer, and the property certificate is uniformly handled by the seller's entrusted scrivener.

Model Contract Texts

To standardize transaction behaviors, the Ministry of Housing and Urban-Rural Development and the State Administration for Industry and Commerce have revised relevant model texts and formulated the Model Text of the Commercial Housing Sales Contract (Pre-sale) (GF - 2014 - 0171), etc. Localities have also formulated their own model texts, such as the Model Text of the Guangzhou Commercial Housing Sales Contract (Pre-sale) (SF - 2020 - 0102), which provides detailed regulations in many aspects.