Wang V. Real Estate Development Co. Real Estate Contract Dispute Case Analysis

With deep development of market economy in China, sale of commercial housinghas become a concern social issue for rapid growing in trade market. The rapidgrowing development leads to many sales of commercial housing dispute cases.Owing to imperfect related laws and regulations of real estate market, market tradingsubject to be opportunistic, mercenary, and exploiting loophole, so it causes unclearlegal guidelines to judiciary in trial practice that protection on interest of vulnerablesubjects has been weakened.A contract dispute case of buyer Wang appealing Real Estate Development Co.,Ltd. about sale of commercial housing estate is typical. The buyer Wang had signedsale of commercial housing contract with the seller Real Estate Development Co., Ltd.,then Wang have obtained ownership of the house and decorated it. However, whenmeeting registration obligations, the seller had applied with a fake contract to realestate sector. The fake contract is a cause of the acts of the property registration.Contradiction in two contracts appears on the identical house. In the case, twodisputes focus. First, forged by the registration of the contract is binding to Wang.Second, whether Wang can directly take the unregistered contract to claim propertyright. The premise of contract consent of the parties leads to consistent intention. Sothe fake contract to the defendant is not binding on the plaintiff. There are twoviewpoints on settlement of the disputes for the case. On the one hand, the plaintiffhas not obtained the property rights by reason principle. On the other hand, theplaintiff has obtained it by the non-reason principle. By combination of specific factsand legal relations of the case, it analyzes nature of contract and principle of goodfaith, the case does not involve the application of non-reason principle. Under the law,applying the principle of good faith and correction of the registration, it couldmaximize protection on interests of bona fide buyer. In future work of the legislation,a substantive examination of the real estate registration system should be establishedto prevent seller from abusing the reason principle to cause registration defects. Andmore specific content of correct registration system also should be defined.Refinement of the law could improve the protection on rights of the parties. Therefore,order and stability of the trade market in real estate could be maintained.