The High-Stakes Hijinks of Richie, Robbie, and the Suzhou Sky-High Apartment Saga

Once upon a time in the bustling city of Suzhou, there was a slick sales whiz named Robbie Razzmatazz, who twirled his mustache as he charmed his way through the real estate jungle. Robbie worked for “Sky-High Estates,” where the apartments soared as high as the prices.

Enter Richie Richbucks, a man whose wallet was as plump as a Thanksgiving turkey. Richie took a fancy to a swanky pad with a price tag that would make even Monopoly Man gulp – a cool 5 million RMB. With a flick of his diamond-studded pen, Richie signed on the dotted line and did the pre-registration dance.

Fast forward three months, and along pranced Cash Moneybags, a fellow with a bank account so large it had its own gravitational pull. Cash caught wind of Richie’s new nest and declared, “I’ll raise you a million!” Waving 6 million RMB in the air, he caught Robbie’s eye, who saw dollar signs brighter than the neon lights of Suzhou.

In a flash, Robbie, with visions of a fat commission clouding his judgment, signed a shiny new contract with Cash, elbowing Richie’s deal into the shadows. “Transfer the deed, posthaste!” Robbie demanded of Sky-High Estates, salivating at the thought of his upcoming payday.

Richie, whose temper now matched the red in his ledger, was ready to turn this real estate tango into a full-blown wrestling match. “Invalidate this mockery of a contract!” Richie roared, shaking his fists at the heavens.

Now, in the grand arena of legality, the pressing question loomed: Was the contract between Cash and Sky-High Estates as solid as the foundation of the apartments they sold? Could Cash, with his bulging wallet and beady eyes, demand the keys to his castle in the clouds?

Law In A Minute

The agreement between Cash and the real estate company stands as a valid contract. Nevertheless, Cash cannot compel the transfer of the apartment to himself.

While Richie and the real estate company did enter into a purchase agreement and completed the initial registration steps, the real estate company remains the current owner of the property. Consequently, the company retains the authority to manage the property, including engaging in further sales agreements. Therefore, the contracts with both Richie and Cash are legitimate and do not inherently conflict.

However, given that Richie has finalized the pre-registration process, his consent is required for any subsequent change in ownership. Without his approval, Cash is unable to secure the title to the apartment. In light of this significant breach of contract—wherein Cash may be deprived of the apartment—he is entitled to seek compensation from the real estate company.

Legal Basis

Civil Code

Article 221

When the parties enter into an agreement for the sale and purchase of a house or sign other agreements concerning real estate property rights, to safeguard the future realization of property rights, they may apply for a notice of pre-registration with the registration authority in accordance with the agreement. After the notice of pre-registration, any disposition of the real estate without the consent of the pre-registered rights holder shall not have any effect on property rights.

After the notice of pre-registration, if the related debt is extinguished or if registration is not applied for within ninety days from the date on which registration of the real estate could have been carried out, the notice of pre-registration becomes invalid.

Article 563

A party may terminate the contract under any of the following circumstances:

1. The purpose of the contract cannot be realized due to force majeure.
2. Prior to the expiry of the performance period, one party clearly indicates or demonstrates through their actions that they will not fulfill their primary obligations.
3. One party delays the performance of their primary obligations and fails to perform within a reasonable period after being urged to do so.
4. One party delays the performance of obligations or commits other breaches of contract that result in the failure to realize the purpose of the contract.
5. Other circumstances stipulated by law.

In the case of indeterminate-term contracts that require continuous performance, a party may terminate the contract at any time. However, they must notify the other party prior to the reasonable deadline.

Interpretation of Sales Contract By Supreme Court II

Article 15

If the seller enters into multiple sales and purchase contracts for the same subject matter, the contract does not have any invalidity as stipulated in Article 52 of the Contract Law. If the buyer cannot obtain the title of the subject matter as agreed in the contract and requests that the seller be held accountable for breach of contract, the people’s court Should be supported.

If one of the parties claims that the contract is invalid on the grounds that the seller has no ownership or right to dispose of the subject matter when the contract is concluded, the people’s court shall not support it.