The circumstances in which the mortgage approval is rejected are as follows: If the mortgage approval is rejected due to the reasons of the buyer or the seller, the contract can be terminated and the other party can be paid a penalty of not more than 20% of the total house price and 30% of the actual loss; If the mortgage application is not approved due to reasons not attributable to both parties, the buyer shall serve a notice of disapproval and the seller shall refund the deposit, house price and interest.

legal ground

Article 19 of the Interpretation on Several Issues Concerning the Application of Law in the Trial of Disputes over Commercial Housing Sales Contracts

For example, as stipulated in the Commercial Housing Sales Contract, the buyer pays by secured loan. If one party fails to continue to perform the commercial housing sales contract due to its breach of contract, the other party may request to terminate the contract and compensate for the losses. If the Commercial Housing Guarantee Loan Contract cannot be concluded and the Commercial Housing Sales Contract cannot be continued due to reasons not attributable to both parties, the parties may request to terminate the contract, and the seller shall return the principal of the purchase price and its interest or deposit to the buyer.