9 Housing Enterprises Open Letter Calls for Cautious Handling of Hardcover Back-offs Litigation, Jiangsu Higher Peoples Court: Take legal channels
"We noticed this letter circulating on the Internet last week. However, after preliminary verification, our hospital has not received a written letter at present. "
Recently, in response to the online report that 9 well-known real estate developers, including COFCO Real Estate, China State Construction Real Estate, Xincheng Holdings, Agile, etc., jointly reported their feelings to Xia Daohu, President of the Jiangsu Higher People’s Court, on March 25th, the Jiangsu Provincial High Court reportedly The Paper (www.thepaper.cn) replied.
Zhang Zhiping, director of the Information Office of the Jiangsu Higher People's Court, told The Paper that it is “undesirable” to recommend that they (developers) protect their rights in accordance with the law and disseminate open letters online. If they are dissatisfied with certain court judgments, they can follow the legal channels. For example, they can file a complaint or appeal to the procuratorial organ for protest.
9 developers jointly named "Supplier" Dean of Jiangsu Provincial Higher People's Court
Recently, a web post has been spread through social media and has attracted widespread attention. The online post stated that nine development companies, including COFCO Property, China State Construction Property, Xincheng Holdings, and Agile, which have real estate development projects in Nanjing, have jointly “submitted a letter” to Xia Daohu, President of the Jiangsu High Court, requesting “maintain the stability of hardcover housing transactions”. , "Avoid mass incidents caused by malicious litigation."
On the afternoon of March 25, relevant persons in charge of many real estate companies such as China State Construction Real Estate, Yincheng Real Estate, and Xincheng Holdings confirmed to The Paper that they had indeed joined the "collective letter" operation.
This "Emergency Report on Maintaining the Stability of Hardcover Housing Transactions in accordance with the Law to Avoid Mass Incidents Caused by Malicious Lawsuits", at the beginning, stated clearly to "Chen Qing" to Xia Daohu, President of the Jiangsu Higher People's Court. The full text consists of two pieces of paper, densely covered with the red seal of the development enterprise.
These companies are: COFCO Real Estate Nanjing Co., Ltd., Nanjing China Construction Fukang Real Estate Co., Ltd., Yincheng Real Estate Group Co., Ltd., Nanjing Xincheng Wanlong Real Estate Co., Ltd., Nanjing Agile Real Estate Development Co., Ltd., Shenye East China Real Estate Development Co., Ltd. , Nanjing Bozhou Real Estate Development Co., Ltd., Nanjing Shanjieyi Real Estate Development Co., Ltd., Yum Kylin (Nanjing) Construction Development Co., Ltd.
Among the developers of the "Booking", there are not only central state-owned enterprises giants, listed company real estate enterprises, but also local powerful developers in Nanjing.
In the "Emergency Report", the reason why the above-mentioned 9 developers used a huge lineup to express their sentiments was because they were worried that a case of retrial and judgment made by the Nanjing Intermediate Court would trigger a chain reaction and emulation effect-Nanjing R & F Properties and dozens of people The buyer was in a hardcover housing lawsuit, and the Nanjing Intermediate Court ruled that the developer lost the lawsuit.
According to the report, since 2018, owners of many finely-decorated properties in Nanjing have followed R&F's petitions by refusing to accept the house, requesting the renovation to check the price and refund the difference, "there is a growing trend." In addition, the number of such litigation cases accepted by Nanjing's district courts has also shown a surge.
The report also mentioned that, according to incomplete statistics, the companies involved in the lawsuit include Vanke, COFCO, Yincheng, Shenye, China Construction, Agile, Xincheng, Yuzhou and other development companies.
The above-mentioned development companies urge the court to "carefully consider" the purchaser's request for verification of decoration prices and refunds (prices) in such cases. If the court supports the appraisal of the construction cost of the decoration of the hardcover house and awards compensation to the developer on this basis, "it is bound to cause a chain reaction, and a large number of house buyers will file a lawsuit for this."
The verdict a year ago left developers on pins and needles
So, what happened to the "R&F case" mentioned in this "emergency report"? Why are many real estate development companies "stuck on pins and needles" because of this case?
According to "Modern Express" report, in November 2014, the garden house project R&F No.10 Community developed by R&F Properties in Nanjing was officially delivered. According to the commercial housing pre-sale plan announced by R&F Properties at that time, the community is a finished housing, and the price standard for fine decoration is 4500 yuan/㎡. However, during the delivery period, the owner found that the house had many quality problems, including the large gap between the actual decoration and the model house.
In December 2014, more than 40 owners of R&F No. 10 filed a suit against the developer, Nanjing R&F Properties, in court. They believed that the fine decoration standard of 4,500 yuan per square meter advertised by the developer did not meet the actual delivery. It is required to compensate for the difference in price.
The first instance and the second instance of some cases rejected the buyers' claims. These buyers refused to accept it and applied to the Nanjing Intermediate People's Court for a retrial.
The paper reporters inquired about China Judgment Document Network and found
On December 28, 2017, the Nanjing Intermediate People's Court made a retrial and revised judgments in some cases, supporting the claims of the buyers. The court judged Nanjing R&F Properties to compensate each buyer for the difference in the decoration price of about 200,000 yuan
.
Since then, many owners who lost the first instance also received the court's decision support during the second instance.
The Nanjing Intermediate People’s Court re-examined that the "Commercial Housing Pre-sale Plan" is a necessary material for the development enterprise to declare the pre-sale permit of commercial housing to the real estate management department, and the "Commercial Housing Pre-sale Plan" contains information on the unit price of 4500 yuan per square meter for decoration. Publicize to the whole society. According to the supplementary agreement, the decoration unit price information specified in the "Commercial Housing Pre-sale Plan" shall be the content of the rights and obligations of the contract between both parties. Therefore, the court determined that the decoration unit price information contained in the "Commercial Housing Pre-sale Plan" is legally binding on real estate developers.
The Nanjing Intermediate People's Court also believes that R&F will use model houses at the sales site to advertise the well-decorated houses to buyers. The purchaser has the right to request R&F to provide a refined decoration room consistent with the model house. In view of the fact that the current model house no longer exists and lack of reference, the applicant requires the refined decoration of 4500 yuan/square meter specified in the "Commercial Housing Pre-sale Plan" The unit price, compensation for decoration losses, conforms to the provisions of administrative regulations.
Jiangsu Higher People's Court: Did not receive a written letter, suggesting due process
Regarding the authenticity of the "emergency reports" of the nine developers mentioned above, The Paper asked many of the development companies to verify the authenticity, and they all told The Paper that there was indeed something wrong.
Wang Zheng, vice president of Yincheng Real Estate Group, said that the legal department is dealing with the above matters, and he will arrange for relevant departments to reply to reporters on specific circumstances. However, as of press time, the reporter has not received a detailed reply from Yincheng Real Estate.
The person in charge of the Nanjing brand of Xincheng Holdings also stated that there are indeed nine companies including Xincheng Holdings who have jointly sent letters to the Jiangsu Provincial Higher People's Court, but it is inconvenient for them to make specific comments on this matter.
On the afternoon of the 25th, Zhang Kai, the head of marketing of China State Construction Real Estate Nanjing, told The Paper that he knew that his company had participated in the "submission" to Jiangsu Higher People's Court.
Regarding the reasons for drafting this "emergency report", Zhang Kai explained that more and more owners of hardcover houses have filed lawsuits with the courts, applying for a second evaluation of hardcover houses, and the hardcover appraisal report submitted by development companies to the Price Bureau for approval. Make a comparison, "If there is a price difference, ask for a refund."
Zhang Kai used an analogy. Buying a hardcover room is like buying an Apple mobile phone. If you take the mobile phone apart and evaluate how much each part costs, if it adds up to 2,000 yuan, then, "Is it possible to sue the court and ask Apple to return it? 8000 yuan", "this is impossible."
Specific to the purchase and sale of hardcover houses, it is also a commodity transaction. The development company has the right to set prices independently. It has been explained before the owner buys the house. These agreements include the fine decoration list and the contents of the fine decoration in the contract. If the delivered house is not Compliance with the standards involves the dishonesty and cutting corners of the development enterprise. Buyers of the house should sue the development enterprise to protect their rights and interests.
"If (the development company) does not change the decoration standards, and the buyer signs a contract with the development company, then this contract is valid and cannot be overturned at will. (The hardcover standard) includes labor costs, corporate taxes, R&D costs, Reasonable profit, etc., cannot be evaluated. If you question the value of hardcover, you can choose to refuse before buying a house." Zhang Kai said.
In Zhang Kai’s view, the nine development companies chose to send letters to the Jiangsu Higher People’s Court because the court did not “understand the situation of the industry” and each company must clarify the facts of each company. This is “a fair and honest matter. There is no question of'kidnapping the court'". And if the court makes a judgment of "refunding the price difference in hardcover", such problems will occur in tens of thousands of houses in Nanjing.
Regarding the joint letter of multiple developers, Zhang Zhiping, director of the Information Office of the Jiangsu Higher People's Court, responded to The Paper that the court had paid attention to relevant online posts last week, but had not yet received a written letter.
Zhang Zhiping told The Paper that if developers are dissatisfied with the court’s decision, they can follow legal channels, and can file a complaint or appeal to the procuratorial organ for protest. "This (joint letter) method is not advisable."
A senior judge who requested anonymity also commented to The Paper that if the lawsuit triggered by the refined decoration of the house is the first breach of contract by the developer, it should be compensated. If the developer fulfills the contract, the court will not support the owner’s claim. “There is no need to take this form to put pressure on the court, which is equivalent to ‘forcing the palace’ on the high court”.
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9 Housing Enterprises Open Letter Calls for Cautious Handling of Hardcover Back-offs Litigation, Jiangsu Higher Peoples Court: Take legal channels
