A Study Of Punitive Damage Compensation System Of Commercial Housing Sale

Enacted in 1993, "Consumer rights and interests Protection Law" was first applied to the system, but what truly introduced punitive damage compensation system into the sale of real estate disputes system is "Interpretation about the Real Estate Contract Dispute on the Trial Case", which was promulgated by Supreme People’s Court in 2003. However, with the rapid development of China’s real estate market, new problems arise more and more in the field of real estate business.In order to effectively open specification’s illegal violations, safeguard the legitimate rights and interests of the buyers to establish a more robust real estate market, it is necessary for the existing system of punitive damages sale of real estate to further improved.Although some of our separate regulations have also introduced the system of punitive damages, but requirements are more concerned, and at the institutional level less than perfect, on the sale of real estate currently, the sale of real estate buyers and developers are the subjects of legal relation.The application of punitive damage compensation system mainly includes the following three aspects:malicious breach of contract, fraud and the deviation of house area. Judicial practice also shows that the existing judicial interpretation is still imperfect in the following three aspects:First, the suitable objects of punitive damages compensation system is narrow, so it cannot cover all the fraud breach practice which already existed. Appropriate measures need to be taken to expand the scope of punitive damage compensation. Secondly, the subjective conditions of the application on punitive damages is not clear, how to identify the litigant’s subjective fault remains to be further clarify, for which responsibility principle applicable also need further clarification. Third, the existing amount determine is still very vague, in practice, how to calculate the different standards, the judge cut excessive freedom and other issues, or the justice of the law will be affected.For the problems in the legislation and judicial practice, such as the narrow suitable objects, the unclear of subjective conditions, unreasonable liability principle, determine the amount of the more obscure and so on. We need to take appropriate measures to further improve them. Taking the approaches such as "typical list" and "fallback provision" appropriate to expand the application scope of punitive damages; And in terms of reasonable certainly of subjective elements, to further relax subjective elements and reasonable allocation of the burden proof; Use the principle of reasonable proportionality, the principle of judicial discretion and case by case basis to determine the amount of punitive compensation.System perfection could helps punitive damages compensation system serve their purposes, to prevent the occurrence of sales of commercial housing fraud, better handling the sale of real estate disputes, adequately protect the interests of buyers, so as to save social resources, improve housing quality and the level of overall economic and social benefits for the purpose of the sale of real estate has been the focus of both the theory and the practice.