If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties demand a reduction on the grounds that the agreed liquidated damages are too high, they shall reduce them appropriately on the basis that the liquidated damages exceed 30% of the losses caused; If the parties demand an increase on the grounds that the agreed liquidated damages are lower than the losses caused, the amount of liquidated damages shall be determined according to the losses caused by the breach of contract.
How to deal with housing loan interest?
1. When the house purchase contract needs to be dissolved, the breaching party needs to compensate the interest of the house purchase loan. Property buyers only need to claim to the developer to cancel the contract, return their down payment and the returned bank loan, and pay the corresponding interest. (If there is an agreement in the house purchase contract, it shall be settled according to the benchmark interest rate of the bank loan for the same period. If the contract stipulates liquidated damages, then the interest should not be calculated, but according to the liquidated damages stipulated in the contract. If the agreed liquidated damages are less than the above-mentioned calculated interest, all the default losses can be calculated according to the interest. At the same time, developers are required to repay the remaining bank principal and interest by themselves.
2. According to the regulations, only when one party has a major breach of contract, the other party has the right to terminate the contract. Therefore, when the developer can't deliver the house on time, generally speaking, the buyer can't terminate the contract immediately, but according to the situation that the developer has slightly delayed the performance of the contract, the buyer can't deliver the house after the grace period, and has the right to terminate the contract, and ask him to return the pre-sale purchase price and the interest paid, and pay the liquidated damages.
3. If the purchaser fails to deliver the house according to the time stipulated in the purchase contract, he can choose to return the house, and the developer also needs to bear the loan interest and extremely liquidated damages.
Legal basis:
civil law
Article 585 The parties may agree that one party shall pay a certain amount of liquidated damages to the other party for breach of contract, or may agree on the calculation method of the amount of compensation for losses caused by breach of contract.
If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.
The Supreme People's Court's Interpretation of Several Issues Concerning the Application of Law in the Trial of Disputes over Commercial Housing Sales Contracts
Article 12 Where a party requests a reduction on the grounds that the agreed liquidated damages are too high, it shall reduce them appropriately on the basis that the liquidated damages exceed 30% of the losses caused; If the parties demand an increase on the grounds that the agreed liquidated damages are lower than the losses caused, the amount of liquidated damages shall be determined according to the losses caused by the breach of contract.