Kunpeng Project
Why is it that a developer can go bankrupt and leave it unfinished, while ordinary people cannot default?
At first glance, real estate developers run away with money, homeowners struggle to repay loans, and banks look on coldly, in our society full of humanistic care, you are not stupid and I am not stupid, how can this be staged? But don't be surprised, it's real, and it's numerous!
According to national statistics, the rate of unfinished buildings in the country is about 385%, with an unfinished area of 23.1 billion square meters, the number of unfinished buildings may exceed 20 million units! Those involved in this matter are out of luck! But don't worry, click to follow and teach you how to pick up the law and protect your legitimate rights and interests!
When it comes to unfinished buildings, we have to talk about real estate, and when we talk about real estate, we have to talk about its history. But first, I have to tell you what real estate means.
Real estate is a general term for land and buildings. It includes the right to use the land, as well as the development and construction of houses, public facilities, commercial premises, and other buildings on the land.
The development of China's real estate industry is mainly divided into four stages.
The period from 1978 to 1991 was in its infancy, when the market was just emerging, little was known about it, and development was relatively slow.
This was followed by the regulatory period from 1991 to 2002, during which urbanization accelerated, a large number of people from the countryside moved into the cities, providing more potential consumers for the real estate market, and the economic situation was good, all of which led to the boom in real estate.
Of course, the regulation of the real estate market was quickly strengthened, and a series of policies were introduced to curb the problems of excessive housing prices to a certain extent.
The rapid development phase, from 2003 to 2013, as in the previous stage, the acceleration of urbanization and the increase in residents' incomes led to the rapid development of the real estate market. ** It has also improved policies to encourage housing consumption and promoted the prosperity of the real estate market.
In the adjustment stage, from 2014 to 2020, the so-called full moon is not round, affected by policy and economic factors, the property market has entered a period of adjustment, and the trend of housing prices has also slowed down. At the same time, it has also stepped up the regulation of the real estate market and tightened the rules and restrictions on property developers.
However, in this period of extensive development, it is inevitable that problems will gradually arise over time, and unfinished buildings are one of them.
The reason why the promoter chose to be unfinished, in fact, is far more than the escape of the money staged on TV, the reasons behind it are very complex, in general, there are the initiator's capital chain breakage, economic disputes, violations of laws and regulations, market risks, management problems and the like.
As the name suggests, developers with broken capital chains have no money to continue building houses.
Economic disputes are more complex. Disputes arising from the developer's use of the property under its name as collateral for financing or security, or disputes arising from the developer's failure to carry out development and construction in accordance with the planning and design documents or the violation of planning permissions. When you have a problem, you won't think about starting until you solve the problem.
In addition, there are some violations of laws and regulations, such as not using funds in accordance with regulations, illegal change of land use, etc.
Market risks are related to demand, for example, renting has been popular for a while, but fewer people are buying houses, and developers are unable to sell as planned and make enough money, so they have to rotate.
Poor management by developers can also lead to a decline in building quality. For example, if the developer is negligent in the management of the project, there is a loss of funds, or there is a safety problem at the construction site, which can also affect the progress and quality of the project.
All of these reasons are not isolated, they can interact and influence each other, and together they can lead to the failure of a real estate project. But in any case, you must be cautious when buying off-plan properties, and try to choose a reputable developer with stable business conditions to reduce the risk of unfinished.
But on the other hand, if the developer definitely chooses not to do bad things, how can we, the owners, choose not to pay the monthly payment and not be the bad guys? You can't just stop paying monthly installments! If you don't pay it, it will affect the next loan, or be included in the bad debt list by the bank, affect the child's public examination, and even worse, you will be sued to the court!
Let's start with the legal relationship. The relationship between the developer and the buyer of the contract for the sale and purchase of the house. If the developer is unable to fulfill the contract for any reason and does not fulfill its obligations, the homeowner can negotiate with the developer to settle the matter.
However, the relationship between the individual owner and the bank is a loan, and even if the house cannot be delivered, the loan has been disbursed to the buyer (directly into the developer's account), and the buyer is obliged to repay the loan to the bank on time.
It still depends on people's hearts. After all, we paid the money, and if the owners were united, there might be"Kind"of developers don't have the money to reimburse home buyers, so write them a note (blank check).
But can I sign this IOU?
The answer is no! Once signed, the relationship between the developer and the buyer becomes a debt relationship. What's more, the white strip is not supported by formal legal documents, and the legal effect is very weak.
Moreover, most developers are limited liability companies with limited liability in the event of bankruptcy liquidation, and the law has always protected farmers and banks from paying off their debts in the event of bankruptcy liquidation.
Once the arrears of wages and the money previously owed to the bank have been received, how can the developer pay the landlord again?
Can we, the owners of unfinished buildings, only consider ourselves unlucky?
Of course not! The law always defends the interests of citizens.
At all times, we must bear in mind the constitutional principle of popular sovereignty and know that the law is always on our side. Since the advent of Supreme Civil Court Judgment No. 245 (2019), all these issues have had a clear guiding agenda.
Owners of dilapidated buildings can properly hold perpetrators accountable instead of having to pay mortgages and sleep on construction sites!
However, professional things should be left to professional people, and if you are in such a predicament, you should seek the help of a lawyer.
In this way, it seems that off-plan housing is still not as tasteful as second-hand housing and existing housing?
However, the advantage of having off-plan property allows you to start choosing your preferred floor plan and location before the house is completed, having more options, getting a better ** than the existing house, and getting a bigger discount when you ** off-plan, what about these? You still want to buy it.
But it's better to be dead.
This is a bit of an exaggeration considering the risks associated with buying an off-plan property.
Let's start with the risk of housing quality. According to the legal definition, the so-called"Housing"It refers to the period between the real estate development enterprise obtaining the "Commercial Housing Pre-sale License" and handling the real estate registration and obtaining the real estate warrant, and the commercial housing during this period.
This is a pre-sale (purchase) and other activities before obtaining the "Commercial Housing Pre-sale License", so the buyer cannot directly check the exact condition of the purchased house. In other words, what we buy is very different from what we imagined.
Secondly, it also includes the false publicity that may be caused by not disclosing the area and the project. In order to maximize commercial benefits, some developers deliberately reduce the planned construction area and increase the shared and shared area, while they give you a pie to satisfy your hunger when surveying buildings on the spot.
Either it is in the supporting facilities, green space area, floor area ratio, environmental protection facilities and other aspects of arbitrary and non-open and transparent changes, the owners are in the dark, the community in the question of what is green space for other purposes, add new buildings, build parking lots, etc., so that the actual area of commercial housing and the sales area are seriously inconsistent.
The worst is coming, and that is the unfinished and postponed. The developer may delay the delivery of the property due to financial problems, project management problems, etc. Some even drag on for three or five years. In particular, there are school district houses that haven't even been built after your child graduates. These things do happen from time to time.
But that's not a bad thing, the house is eventually delivered, but when rot is found, there may be no way to get the money back.
In the current economic situation, developers are generally squeezed, many projects do not meet the pre-sale conditions, or internal underwriting has begun, buyers are eager to enter the market with discounts, so they have suffered unfinished.
But on the other hand, the existing house does not have these worries, and the buyer can directly buy and live in it, and its advantages include but are not limited to intuitive vision, good supporting facilities, stable house quality, clear title deeds, etc.
Of course, it also has a significant drawback, which is that it is expensive, which is a bit difficult for those who have no savings.
Therefore, combining the advantages of both and avoiding the disadvantages of both, a third, more attractive way to buy a house came into being: second-hand housing.
According to relevant data collection, from 2018 to 2023, the total transaction area of second-hand houses is not much different from the total transaction area of new houses, and even second-hand houses will reach an equal rate in 2023. It can be seen that the second-hand housing market still has great potential and is gradually becoming the choice of more people.
In addition, the pressure of adjustment of the second-hand housing market is still ongoing, and the supply and demand sides continue to make efforts, due to the continuous increase in the city's policy efforts, superimposed by the active promotion of real estate companies at the end of the year, and the centralized online signing of some projects, the market trend and market activity continue to rise.
Therefore, compared with the risk of off-plan housing and the high cost of new housing, second-hand housing is cheaper and can be accepted on site, which is a good choice.
If the developer is really too big to lose, don't be in a hurry to cut off the supply, pick up the law, and start the journey of rights protection with other owners!
Of course you are brave and strong, but for professional things, or professional people doing professional things, don't forget to hire a lawyer.
Move your fingers and bookmark this article, and maybe you'll need it that day. Of course, I hope you'll never use it!
Instead of worrying that you have bought an off-plan house, but the builder is not good, it is better to look at the problem from a different perspective and choose a second-hand house.