First, the deposit is not refundable. If the buyer fails to sign the contract according to the time limit and place specified in the subscription book, or changes the main terms such as price, area and apartment type confirmed in the subscription book when the buyer formally signs the contract, it will be regarded as a breach of contract and the deposit paid will not be refunded.
Second, the deposit should be refunded.
1. If the developer resells the house subscribed by the buyer to another third party within the time limit specified in the letter of intent for subscription, and fails to formally sign the contract, it shall return the buyer's deposit twice.
2. If the developer fails to obtain the relevant legal documents for the sale of commercial housing, or the two parties cannot sign a formal contract due to the developer's own reasons, or the contract is invalid, the developer shall return the buyer's deposit and bear the buyer's losses.
3. If both parties can't reach an agreement only because of the contents of the formal contract and relevant supplementary agreements, it has nothing to do with the contents of the letter of intent for subscription, and the signing fails, and there is no breach of contract between the two parties, the developer shall return the deposit in full to the buyers.
4. In the Letter of Intent for Subscription, the main terms such as price, area and apartment type are not stipulated or clearly stipulated. If both parties cannot reach an agreement on this content and cannot sign a formal contract, the developer shall return the deposit to the buyer.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 586 The parties may agree that one party shall pay a deposit to the other party as security for the creditor's rights. The deposit contract is established when the deposit is actually paid.
The amount of the deposit shall be agreed by the parties; However, it shall not exceed 20% of the subject matter of the main contract, and the excess shall not have the effect of deposit. If the actual amount of deposit paid is more than or less than the agreed amount, it shall be deemed as a change of the agreed amount of deposit.
Article 587 Where the debtor performs the debt, the deposit shall be set off as the price or recovered. If the party paying the deposit fails to perform the debt or the performance of the debt is not in conformity with the agreement, thus the purpose of the contract cannot be achieved, it has no right to request the return of the deposit; If the party receiving the deposit fails to perform the debt or the performance of the debt does not conform to the agreement, so that the purpose of the contract cannot be achieved, the deposit shall be returned twice.
Article 588 Where the parties have agreed on both liquidated damages and deposit, if one party breaches the contract, the other party may choose to apply the liquidated damages or deposit clause.
If the deposit is not enough to make up for the losses caused by one party's breach of contract, the other party may demand compensation for the losses exceeding the deposit amount.