When purchasing commercial housing, a subscription agreement is often signed before signing a formal purchase contract. After signing the subscription agreement, the developer will keep the house that the owner likes and will not sell it to a third party. The owner must pay the down payment within the specified time, etc. A subscription agreement is not the same as a real house purchase contract, but it is also subject to legal constraints and has certain legal effect. So, what is the effectiveness of the subscription agreement? This article introduces this knowledge to you in detail.

The legal effect of the subscription agreement

There are two views on the legal effect of the subscription agreement: the theory of negotiation and the theory of conclusion. The theory of necessary negotiation means that once the parties conclude a subscription agreement, both parties have the obligation to negotiate to conclude a sales contract at some time in the future. As long as the parties negotiate to conclude a sales contract, the obligation to negotiate is fulfilled, and ultimately Whether the commercial housing pre-sale contract is successfully concluded or not is not the question. The theory that a contract must be concluded holds that the effect of a subscription agreement is to conclude a pre-sale contract for commercial housing. Therefore, it is not enough for the parties to simply negotiate for the purpose of concluding a pre-sale contract. They must also successfully conclude this contract, otherwise the subscription agreement is meaningless.

If the content of the subscription agreement does not include the main contents of the pre-sale sales contract, it is more reasonable to adopt the theory that negotiation is required, because at this time both parties have not yet reached an understanding of the main contents of the sales contract, and the subscription letter can only bind The two parties negotiated in good faith on the conclusion of the sales contract within the agreed time, but it was difficult to constrain them to conclude the sales contract. If it is difficult for both parties to reach an agreement after good faith negotiations, neither party shall be deemed to have breached the contract; otherwise, it may be required to bear responsibility.

If the subscription agreement already contains the main contents of the sales contract, it is more reasonable to adopt the theory that the contract must be concluded. The commercial housing subscription document always has certain content, especially when the agreement reached by the two parties has been generally fulfilled, that is, when the commercial housing subscription document has met the conditions for the establishment of a purchase contract, the sale should be forced. Therefore, as long as the commercial housing subscription document determines the room number and price determination method, and can determine the area and other matters based on this, or can determine the total price of the house, then the necessary conditions for the purchase contract have been met, and the developer will be responsible for the subscription. The person has the obligation to retain the commercial room booked.

What is the difference between a subscription agreement and a formal contract?

The subscription agreement for buying a house is only an agreement of intention. According to Article 44 of the "City Real Estate Management Law of the People's Republic of China", pre-sale of commercial housing must meet the following conditions: (1) All land use rights transfer fees have been paid and the land use right certificate has been obtained; (2) Holding Construction project planning license; (3) Calculated based on the commercial housing provided for pre-sale, the funds invested in development and construction reach more than 25% of the total investment in project construction, and the construction progress and completion delivery date have been determined; (4) To the people at or above the county level The government real estate management department shall handle pre-sale registration and obtain a commercial housing pre-sale license. Article 22 of the "Measures for the Administration of Commercial Housing Sales" also stipulates: If the commercial housing sales conditions are not met, the real estate development company shall not sell commercial housing and shall not charge any reservation fee from the buyer. Therefore, signing a house subscription agreement is obviously illegal and should be deemed an invalid contract.

The subscription agreement simply states the total price, area, floor, etc. of the house you want to buy. The formal contract needs to be filed online with real estate and is one of the materials you will need to apply for a property ownership certificate in the future.

What is the validity of the subscription agreement? However, there are also disputes about the validity of the subscription agreement in the legal community. That is to say, if a dispute arises between the owner and the developer, they will need to go to court to distinguish right from wrong. Nowadays, when buying a house, a subscription agreement will be signed. When signing the subscription agreement, the buyer should clearly read the contents of the agreement. At the same time, after buying the house, he must remember to get the real house purchase contract, so that he can apply for the real estate certificate in the future. Much simpler.

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