supreme people 's court



Reply on the Protection of Consumer Rights in Commercial Housing



(Adopted at the 1879th meeting of the Judicial Committee of the Supreme People's Court on February 14, 2023, effective from April 20, 2023)



Fa Shi [2023] No.1





Announcement of the Supreme People's Court of the People's Republic of China



The "Reply of the Supreme People's Court on the Protection of the Rights of Consumers in Commercial Housing" was passed at the 1879th meeting of the Judicial Committee of the Supreme People's Court on February 14, 2023, and is hereby promulgated. It will come into effect on April 20, 2023.





supreme people 's court



April 20, 2023





Henan Provincial Higher People's Court:



We have received your request for clarification on the ranking of rights in risk resolution for real estate enterprises (Yu Gao Fa [2023] No. 36). Regarding the issue of consumer rights protection of commercial housing involved in the trial of disputes by real estate development enterprises due to overdue delivery of commercial housing, the People's Court has studied and approved the following:



1、 The priority relationship between the right to repayment of construction project prices, mortgage rights, and other creditor's rights shall be handled in accordance with Article 36 of the Interpretation of the Supreme People's Court on the Application of Law in the Trial of Construction Contract Disputes (1).



2、 If a consumer of commercial housing purchases a house for the purpose of residence and has already paid the full price, and claims that their right to request delivery of the house has priority over the right to receive priority compensation for the construction project price, mortgage right, and other creditor's rights, the people's court shall support it.



Consumers of commercial housing who have only paid a portion of the price and have actually paid the remaining price before the end of the first instance court debate may apply the provisions of the preceding paragraph.



3、 In the event that the property cannot be delivered and there is no possibility of actual delivery, if a consumer of commercial housing claims that the right to refund the price has priority over the right to receive priority compensation for the construction project price, mortgage right, and other creditor's rights, the people's court shall support it.



Chinese Lawyer - Beijing Lawyer: Zhang Xuehua