What to do if the real estate company goes bankrupt
Recently, the real estate market has become more volatile, with real estate companies closing down and real estate projects failing in many places, which has attracted widespread attention. If a home buyer unfortunately encounters such a problem, how should he protect his own rights? The following is a structured analysis and response plan.
1. Hot topics in the real estate industry in the past 10 days
| topic | heat index | Related events |
|---|---|---|
| Real estate company debt default | 9.2/10 | A leading real estate company announced a restructuring |
| Guaranteed delivery policy | 8.7/10 | Many governments set up special funds |
| Home buyers’ rights protection | 8.5/10 | Class action lawsuit against property owners |
2. Common signs of bankruptcy of real estate companies
| early warning sign | Probability of occurrence | Response suggestions |
|---|---|---|
| Project progress stalled | 87% | Immediately verify the developer’s financial status |
| Wage arrears news | 76% | Contact the housing and construction department for filing |
| Frequent pledge of equity | 65% | Consult a professional lawyer |
3. Five-step rights protection guide
1.collect evidence: Organize key materials such as house purchase contracts, payment vouchers, communication records, etc. It is recommended to have them notarized.
2.Joint rights protection: Establish contact through owner groups and collect damage statistics. Data shows that the success rate of class actions is 42% higher than that of individuals.
3.legal approach: According to the "Urban Real Estate Development and Operation Management Regulations", you can request to terminate the contract and claim compensation, or apply for continued performance of the contract.
| Litigation type | Average time taken | Winning rate |
|---|---|---|
| Terminate the contract | 8-12 months | 68% |
| continue to perform | 12-18 months | 53% |
4.government intervention: Complain to the Housing and Urban-Rural Development Bureau. Some areas have established special working groups to "guarante the delivery of buildings." The latest data shows that 79 suspended projects have resumed work.
5.Asset preservation: To apply for property preservation to prevent developers from transferring assets, a guarantee (usually 30% of the target amount) is required.
4. Suggestions on preventive measures
| measures | effectiveness | Implementation cost |
|---|---|---|
| Choose an existing home | ★ ★ ★ ★ ★ | House prices are 15-20% higher |
| Fund supervision account | ★ ★ ★ ★ ☆ | Additional contract required |
| buy insurance | ★ ★ ★ ☆ ☆ | Premium is about 1-2% |
5. Latest policy developments
The latest meeting of the Ministry of Housing and Urban-Rural Development requires that a "white list" system for real estate companies be established before the third quarter of 2023 to provide financing support to high-quality companies. At the same time, the pilot project of "third-party custody of commercial housing pre-sale funds" will be implemented, and 12 cities have been included in the first batch of lists.
Expert advice: Before buying a house, be sure to check the developer's "three red lines" indicators and avoid choosing a real estate company with a net debt ratio of >100% and a cash-to-short-term debt ratio of <1. The current industry average is a debt ratio of 79.3%, a decrease of 6.2 percentage points from the same period last year.
Remember: When encountering a developer crisis, maintain rational rights protection and seek legal assistance in a timely manner. Government and social resources are important forces to rely on.
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