Can the down payment for buying a house be refunded during the epidemic? What should I do if I paid the down payment before the epidemic?

We all know that buying a house is a very important decision that will directly affect the cash flow of the entire family. Many people will take out loans to buy houses. Due to the impact of the new coronavirus, the real estate market in many places has suspended sales. So can the deposit for buying a house during the epidemic be refunded? Let's take a closer look below!

Can I get a refund for my down payment during the pandemic?

The deposit for buying a house cannot be refunded during the epidemic. The nature of the deposit is that it is a breach of contract deposit and is subject to the deposit penalty. That is, if the party delivering the deposit breaches the contract, the party receiving the deposit can claim that the deposit will not be refunded, and it cannot be refunded just because the epidemic is serious; if the party receiving the contract breaches the contract, the party delivering the deposit can claim double the deposit.

Article 115 of the Contract Law [Deposit] The parties may agree that one party pays a deposit to the other party as a guarantee of the creditor's rights in accordance with the Guarantee Law of the People's Republic of China. After the debtor fulfills his debt, the deposit shall be used as payment or recovered. If the party paying the deposit fails to perform the agreed debt, it has no right to request the return of the deposit; if the party receiving the deposit fails to perform the agreed debt, it shall return the deposit in double.

What should I do if I paid a down payment for a house before the epidemic?

The down payment for the house has been paid, but the delivery of the house will be delayed due to the epidemic.

The epidemic is force majeure. If the purpose of the contract cannot be achieved due to force majeure, the contract can be terminated according to law. The Contract Law stipulates that if one of the following circumstances occurs, the parties can terminate the contract:

(1) The purpose of the contract cannot be achieved due to force majeure;

(2) Before the expiration of the performance period, one party clearly states or demonstrates through its own behavior that it will not perform the principal obligation;

(3) One party delays in performing the principal obligation and still fails to perform within a reasonable period after being urged;

(iv) one party delays in performing its obligations or commits other acts of breach of contract, making it impossible to achieve the purpose of the contract;

(5) Other circumstances prescribed by law.

What are the tips for returning the deposit when buying a house?

1. Analyze the reasons for refunding the deposit

Usually, a deposit agreement is required to pay a down payment for a house. The buyer and seller can handle the issue of refunding the deposit according to the provisions of the deposit agreement. If the buyer wants to refund the deposit, he must first find out the reason for the refund. Article 22 of my country's "Regulations on the Management of Commercial Housing Sales" stipulates that if the sales conditions of commercial housing are not met, the developer cannot sell the commercial housing or charge any reservation fees. If it is a case of the developer's responsibility, then the buyer can justifiably refund the deposit.

2. Negotiate with the developer

No matter what the reason is for the buyer to return the deposit, the first thing to do is to negotiate with the developer and express your thoughts and opinions. When you encounter a problem, you can follow the approach of making a big deal out of a small matter. If the buyer encounters trouble in the process of buying a house and wants to return the deposit, he should first contact the seller and negotiate with the seller on how to deal with it. Whether you are buying a new house or a second-hand house, if you do not want to buy the house and want to return the deposit, you need to negotiate with the seller on the specific solution and the proportion of the refund amount.

3. Seek community mediation

There are only two possible outcomes when a home buyer negotiates with a developer. One is that both parties reach an agreement and peacefully resolve the issue of refunding the deposit. The other is that both parties disagree on the refund of the deposit. If the home buyer and the seller disagree and fail to reach a conclusion, the home buyer can choose to ask the local street or community department to mediate the matter. This is also a better mediation intermediary. It is fairer for both parties to find a third party to mediate, and there is no need to worry about either party's extreme behavior.

4. Seek legal help

Negotiating with the community is only a comprehensive approach, but if the other party is strong, usually no mediation will be successful. In this case, the buyer can only use legal weapons to protect himself. If you need to seek legal help, it is a serious matter. If you follow the law, you need to pay attention to evidence. Buyers should keep evidence when paying the deposit.

How much deposit do you usually pay when buying a house?

After paying the deposit, the party who pays the deposit must pay off all the payments as agreed. After paying off all the payments, the deposit can be used as part of the repayment or can be returned to the developer. If the buyer fails to pay off all the payments as agreed, the deposit will not be returned. If the developer is unable to continue to perform the agreement for some reason, the developer needs to pay the buyer double the deposit as compensation.

According to the Guarantee Law of the People's Republic of China, the amount of the deposit is agreed upon by the parties, but shall not exceed 20% of the subject amount of the main contract. In actual operation, the amount and proportion of the deposit are determined by the developer, but the proportion of the deposit paid will not exceed 20% of the total house price.