Property Developer Ordered to Register Titles for 12 Properties in Eastern China Dispute

Property Developer Ordered to Register Titles for 12 Properties in Eastern China Dispute

Case Overview
A property developer in Eastern China has been ordered by a local court to complete property registration for 12 residential units sold to a corporate buyer. The court found that the developer breached its contractual obligations by failing to obtain and transfer property ownership certificates within the agreed timeframe. The buyer had fully paid for the properties and taken possession but could not obtain legal title due to the developer’s inaction.

Case Background and Facts
The plaintiff, Tongjian Company, entered into commercial housing sale contracts with the defendant, Jianghe Company, to purchase 12 residential units in a development known as Jingshun Shanshuijian. The contracts were signed for individual units across multiple buildings within the same project. Under the terms of the agreements, the defendant was required to deliver the properties by January 28, 2011, and to obtain the building ownership certificates by January 28, 2012. The contracts further stipulated that the buyer should receive its individual property ownership certificates within 365 days of property delivery. The plaintiff paid the full purchase price for all 12 units and took possession of the properties in January 2011, with one unit delivered in January 2010. However, the plaintiff did not pay the deed tax or other registration fees after taking possession.

Court Proceedings and Evidence
The case was heard under summary procedures in the local court. The plaintiff appeared through its authorized representative, while the defendant failed to appear despite proper legal service. The court proceeded with a default judgment. Evidence presented included the signed commercial housing sale contracts, payment receipts, deed tax receipts, contract summaries, and court hearing records. The evidence confirmed that the plaintiff had fulfilled its payment obligations and that the defendant had delivered the properties but had not completed the required registration procedures.

Court Findings and Judgment
The court held that the commercial housing sale contracts were legally valid, as they represented the genuine intentions of both parties and did not violate any prohibitive laws or regulations. The defendant, being a qualified commercial housing preseller, was bound by the contract terms. The court found that the defendant breached the contract by failing to obtain the building ownership certificates and by not facilitating the transfer of individual property titles to the plaintiff. Applying the Contract Law of China, the court ruled that the defendant must perform its obligations and ordered it to submit all necessary documentation to the relevant registration authority within 30 days of the judgment taking effect, enabling the issuance of property ownership certificates for all 12 units. The defendant was also ordered to bear the court costs for all 12 cases.

Key Legal Principles
The court applied the principle that a legally formed contract is binding from the moment of formation. Both parties must fully perform their obligations as agreed. When one party fails to perform or performs inadequately, the other party may demand continued performance, remedial measures, or compensation for losses. The court also noted that a defendant who fails to appear after proper service bears the risk of adverse consequences, as they cannot present evidence to support their position.

Practical Insights
This case illustrates the importance of timely property registration in real estate transactions. Buyers who have paid in full and taken possession may still face significant delays in obtaining legal title if the developer fails to fulfill its registration obligations. The case also shows that courts will enforce contractual duties even when the buyer has not paid ancillary fees such as deed tax, as the developer’s obligation to initiate the registration process is independent of such payments. Property buyers should ensure that contracts clearly specify timelines for both delivery and registration, and they should pursue legal remedies promptly when developers default.

Legal References
Contract Law of the People’s Republic of China, Article 44, Paragraph 1 (validity of contracts). Contract Law of the People’s Republic of China, Article 60, Paragraph 1 (full performance of obligations). Contract Law of the People’s Republic of China, Article 107 (liability for breach of contract). Civil Procedure Law of the People’s Republic of China, Article 144 (default judgment). Supreme Peoples Court Provisions on Evidence in Civil Proceedings, Article 2, Paragraph 2 (burden of proof consequences).

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.