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Chinanews, Beijing, Sept. 7 – In Beijing, housing price has been soaring in recent years. In 2004, a commercial house in Beijing might be sold at less than 5,000 yuan per square meter (even then, many local residents thought such housing price was already too high). Now, the price has jumped to 14,000 yuan per square meter. Some people even say that currently, houses in Beijing might be even more expensive than houses sold in New York.
As the housing price rises day by day, the incidence of house dealers1 breaching3 their contracts by selling their houses to more than one purchasers is also on the rise. Information from the Beijing No. 1 Intermediate People's Court shows that during the first eight months of this year, the court had received more than 300 lawsuits4 about housing sales, a number greater than previous years. Most of these lawsuits are related with the housing sales contracts. Sometimes, the contracts are about commercial house sales and at other times, the contracts deal with housing relocation projects. In many cases, the house owners are sued for breaching the contract. In some cases, housing sales agents are charged with selling a house already reserved by someone to another person at a higher price. In the latter case, the housing sales agents' act is prompted by the ever-increasing housing price. “In many cases, the house sellers know that they have breached5 the contract and they might bear related legal liabilities, still they do it in order to make lucrative6 profits. The compensation they need to pay for contract breach2 is far less than the profits they can make,” said Ding Yuxiang, a judge at the Beijing No. 1 Intermediate People's Court. In many of these cases, house sellers tend to be the plaintiffs, Ding said. “Because they feel that they suffer some economic losses by selling the house, so the house sellers want to bring the case to court and plead that the judge can nullify the contract. However, in many of these cases, the plaintiffs are also likely to lose the case,” Ding said.
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