As a large investment, the entire process of second-hand housing transactions involves many financial risks. How to effectively prevent financial risks and ensure transaction security? Apart from basic knowledge such as checking property rights, entrusting reliable real estate intermediary companies, and not easily believing oral promises, homebuyers should also pay attention to the following two issues.
Firstly, it is important to distinguish between earnest money (意向金), deposit (定金), and prepayment (订金). A deposit is a type of guarantee fund. If the party paying the deposit breaches the contract, the party receiving the deposit can confiscate it; if the party receiving the deposit breaches the contract, they must return double the deposit. The significance of the deposit lies in using it as a guarantee to urge both parties to fulfill the contract as agreed. Prepayment, on the other hand, is a partial payment and does not have a guarantee nature. There is no specific legal term called "intent deposit" in the law. Based on its meaning and the actual situation of the contract, it should belong to either a deposit or a prepayment. If it is impossible to determine its nature based on the content of the contract itself, one can refer to trading customs to determine its meaning. It is generally believed that intent deposits without an explicit guarantee meaning should be understood as prepayments.
In the home-buying process, buyers may need to pay intent deposits (which are considered prepayments) to show their sincerity in purchasing or to secure the first right of purchase. However, these prepayments do not have any guarantee component. Only when they are converted into deposits do they take on a form with a guarantee function, representing mutual recognition between the buyer and seller and their willingness to reach a consistent buying and selling relationship. If either party breaches the contract, they will bear the responsibility for breach of contract. Generally speaking, for buyers choosing to transact through real estate intermediaries, a property consultant from the intermediary company will first help them select a satisfactory house, then sign a sales agency agreement and pay the intent deposit. After receiving the intent deposit, the intermediary will arrange a meeting with the house owner to confirm the price and various issues. When the house owner agrees to sign and confirm the sales agency agreement, the intermediary will transfer the intent deposit to the house owner, at which point the intent deposit is converted into a deposit. At the same time, buyers should note that when paying the intent deposit, they must obtain an official receipt stamped with the company's finance seal from the real estate intermediary company as proof, to avoid unethical behavior by the property consultant and unnecessary trouble.