Hangzhou real estate project "sold out the day after registration for the lottery" Lawyer: The lottery announcement constitutes an offer, and the developer has breached the contract

Cover News Reporter Ye Haiyan

According to Zhejiang Television’s “1818 Golden Eye” report on April 7, Mr. Hu, a resident of Hangzhou, planned to buy an apartment in a certain development in Gongshu District. In March, he completed the full registration process, including submitting his credit report and document review, in accordance with Hangzhou’s home purchase policies, becoming the only valid registrant among 44 units in Building 19 of the development. The public announcement on March 30 showed that only he had registered for the lottery, and Mr. Hu thought he could select a unit directly. However, after multiple attempts to contact the sales office without response, he visited the sales office on March 31 and found that the units had been “sold out.”

Screenshot of the involved development (report video screenshot)

The developer explained that due to insufficient registration numbers, the lottery was “streamed,” and after the notarization office issued a certificate, the units were immediately transferred to offline sales, with all 44 units purchased by “offline customers” who did not participate in the registration. Local authorities stated that online registration does not grant priority rights to purchase.

Is the developer’s behavior illegal or violations? How should Mr. Hu protect his rights? In response, on April 8, the reporter interviewed Lawyer Lin Xiaoming from Sichuan Shang Lawyer Firm.

Lawyer Lin said that if Mr. Hu’s account is true and supported by evidence, then there is indeed a case of falsehood involving “one person registering, units sold out the next day.” The developer may have committed multiple illegal violations and should bear corresponding civil and administrative responsibilities.

First, according to the “Consumer Rights Protection Law,” “Consumers have the right to fair transactions” and “Consumers have the right to know the true situation of the goods they purchase, use, or the services they receive.” That is, even if Mr. Hu is the only registered customer, if local regulations indicate that the units are “streamed,” the developer should proactively inform Mr. Hu of the relevant situation; secondly, if the “one person registering, units sold out the next day” is verified to be true, the developer’s behavior clearly violates the principle of good faith under the Civil Code, damaging Mr. Hu’s trust interests and priority contracting opportunities, and should bear liability for damages according to law; additionally, the developer’s announcement of the lottery constitutes an offer, and Mr. Hu’s registration based on the announcement is an act of commitment. The developer’s false claim of units being “sold out the next day” constitutes a breach of contract and should bear breach liability.

Mr. Hu completed online registration (report video screenshot)

Furthermore, according to Hangzhou’s “Notice on Implementing Notarized Public Sale of Commercial Housing by Lottery,” “Real estate development enterprises shall publicly display the registration plan for home purchase intentions at the sales site, clarifying the start and end times, location, and conditions for registration. The registration conditions should comply with relevant regulations and should not include clauses favoring internal personnel or relations,” “After the lottery results are generated, the real estate development enterprise shall organize the unit selection and sale in an orderly manner based on the results. If initial families waive their units, subsequent families shall fill in order. The enterprise shall ensure that the final unit selection results are consistent with the online signing list.” The behavior of this developer clearly violates these regulations and should be subject to administrative penalties.

Lawyer Lin suggests that Mr. Hu can legally safeguard his rights, demand compensation from the developer, and report the issue to relevant authorities. For example, he can file complaints with local housing and urban-rural development departments or market supervision departments, requesting investigations and sanctions against the developer; he can also report to the 12315 consumer complaint hotline, demanding an apology and compensation; additionally, he can pursue judicial remedies by filing a civil lawsuit to hold the developer liable for breach of contract or fault in the formation of the contract.