The Real Estate Subscription Book A Number Of Legal Issues Research

In the practice of selling and buying commercial houses, before both parties sign the formal contract, the real estate developer and the house buyer usually at first sign a subscription book to identify the detail of the transaction. What's more, the buyer usually pays a deposit to the seller as the guarantee of signing the contract. This is a common practice in this kind of transaction. Because there are no articles in the present laws and administrative regulations concerning subscription book, so people are not clear about its legal nature, its status, and both parties' rights and obligations. The consequence causes a lot of disputes which needs to be solved by judicature.Based on the analysis mentioned above, this essay holds that the nature of subscription book belongs to subscription. Subscription book is a pre-contract in which both parties (the real estate developer and the house buyer) confirm their intention of selling and buying commercial houses. It endows obligations to both parties to sign the contract within the time limit. As an independent contract, subscription book can be viewed as a leading procedure in signing a formal contract. Therefore, subscription book bears a duel nature both as a pre-contract and an independent contract. Subscription book comprises regulations for both parties to follow: the real estate developer has the obligation to keep the new house for the house subscriber while the subscriber has the obligation to sign the contract within the assigned time. Both parties should observe their respective obligations with honesty and credit. Subscription is a pre-stage before signing a contract. It has the effect of urging both parties to negotiate openly and honestly while it does not bear the effect of enforcing either party to conclude the deal. Although both parties have reached an agreement concerning the key term, the contract does not take effect until it is signed. When terms of the subscription book is broken, the suffering party can ask for a repayment for loss while the other party should shoulder the responsibility of violating the appointment. As a unique stage in signing a formal contract, subscription book is an independent contract to guarantee the interests of both parties on the basis of justice and honesty. After all, justice is the ultimate goal in carrying out the law.This essay tries to discourses this problem in the following aspects: the nature and status of subscription book, its relationship with the contract, the rights and obligations of the parties to the subscription book, and its legal effect, the deposit liability, and its law regulations. The essay's aim is to provide theoretical guidance to how to correctly apply the present laws to solve these disputes happening in the practice.