3·15 Case | Consumer discovers the house is blocked from sunlight while viewing! Developer ordered to pay 200k yuan

A home that consumer Zhang spent tens of millions of yuan to buy

was discovered to have issues during the pre-viewing

that the natural light of three rooms—the kitchen, living room, and bathroom—

was seriously obstructed by a fire barrier

Zhang believed the developer intentionally concealed key unfavorable information

which led him to buy

a home that lacked functional and value suitability

So he sued the developer in court

seeking compensation for losses of 500,000 yuan

Case:

A tens-of-millions purchase turned out to have “blocked the light” with a fire barrier

According to the report, in December 2021, Zhang obtained qualification to select units in a newly launched real estate development. The floor plan showed that the east-side unit had an open view and good lighting performance, so Zhang selected one east-side unit and, in June 2022, signed the “Shanghai Pre-sale Contract for Commercial Housing” with the developer. The total house price was more than 10 million yuan.

In October 2023, during the pre-viewing, Zhang found that the exterior sides of the windows for the kitchen, living room, and bathroom of the east-side unit were all blocked by a fire barrier, seriously affecting the lighting and ventilation of the three rooms. Zhang reviewed the floor plan advertisements and the “model home brochure” he received when buying the home. Although it mentioned that there were fire barriers between some buildings, it did not clearly indicate that a fire barrier existed on the exterior side of the east-side unit in question. Zhang believed the developer intentionally concealed key unfavorable information, causing him to purchase a home with missing functionality and value. He therefore filed a lawsuit with the People’s Court of Putuo District, Shanghai, requesting compensation for his losses of 500,000 yuan.

Developer’s defense

The developer argued that the east exterior wall was built according to mandatory fire protection design specifications, with no situation of unauthorized changes to the planning and design; and it had already passed completion and acceptance.

It said that based on the actual condition that there was a fire barrier on the exterior wall, it truthfully prepared a model display diagram, and publicly posted it in a prominent location at the real estate sales center, so Zhang should have known that there was a fire barrier on the exterior side of that building.

It also stated that it set the “one unit, one price” principle by legally taking comprehensive factors into account. Zhang raised no objection to the price when purchasing. By denying the pricing mechanism formed through multiple factors based on subjective feelings, Zhang lacked factual and legal basis, so the developer disagreed with Zhang’s claims.

After trial, the court held

Because the defendant developer did not truthfully disclose the unfavorable factors of the property in question, it affected the plaintiff Zhang’s right to choose as a buyer, and it also affected the overall usability function and actual value of the newly purchased commercial housing. This caused losses to the buyer’s reliance interest, so the developer should bear corresponding liability for compensation.

In summary, considering factors such as contract performance and the property’s current condition, the court, in its discretion, determined that the defendant developer should compensate the plaintiff Zhang for losses of 200,000 yuan.

The judge pointed out that as the development entity of the commercial housing project, the developer should follow the principle of good faith, and focus on clearly explaining, in written forms such as the “Commercial Housing Sales Contract,” the “Quality Assurance Booklet,” and the “Disclosure Letter,” the defects that affect the living experience or unfavorable factors involving public safety, or prominently mark planning features in the model display that may affect natural lighting and ventilation.

Consumer Reminder

Remember these 3 things to avoid pitfalls when buying a home

Before signing, you should conduct a comprehensive on-site verification of the intended property, and actively request and review written documents that disclose unfavorable factors from the developer;

When signing, carefully review the contract clauses and confirm that the information about the property, delivery standards, breach responsibilities, disclosure of unfavorable factors, and other contents are all written into the contract;

When taking delivery, if you find that the home has serious issues with the main structural quality or defects that severely affect normal living, you should fix and preserve on-site evidence as soon as possible. You may first negotiate with the developer for repair. If negotiations fail, you can rely on a complete chain of evidence—such as the home purchase contract, promotional materials, disclosure letters, inspection records, and more—to claim repair, compensation for losses, and even contract rescission through litigation.

When you buy a home

have you encountered a similar situation?

What pitfalls have you run into?

Feel free to leave a comment and share your experience in the comment section

Produced by the New Media Department of the China Consumers’ News

Source/China Consumers’ News · China Consumer Network

Reporter/Liu Hao

Editor/Li Xiaoyu

Supervised by/He Yongpeng Ren Zhenyu

Internet news information service license: 10120170022

Report hotline for violations and harmful information: 010 - 88315476

【Source: China Consumers’ News】