Chen and Zhang bought a Pudong flat from Developer Jia for RMB 7 million under a pre-sale contract, paid in instalments, received an invoice and took delivery, occupying the flat lawfully. In February 2024 they learned that the developer’s creditor had obtained an enforcement ruling and that their flat had been seized.

Approach

The firm advised an enforcement objection under the Supreme People’s Court provisions on objections and reconsideration in enforcement. The decisive elements were full payment, lawful possession before seizure, absence of fault in not registering title, and the absence of another home.

Outcome

The court upheld the objection and released the property from seizure, confirming the buyers’ priority over the developer’s general creditors.