Shen, a Chinese homebuyer, purchased a 90-square-metre apartment on the supposed 34th floor for 2,646 yuan per square metre in 2013, in a village near Xi'an in China's Shaanxi province.
The project had 'limited property rights' status, an unofficial term for housing illegally built on collectively owned rural land, which lacks legal protections and cannot be legally resold.
According to Shen, the developer assured buyers that the necessary approvals and certificates would be secured later, but such projects are typically unable to obtain the required legal documentation.
In 2017, the developer informed Shen that the completed building had only 32 floors, making his purchased unit impossible, and initially offered him a replacement apartment on the 32nd floor, which was later sold to another buyer.
Authorities ordered the developer to repay the remaining 47,700 yuan of Shen's down payment, along with 27,000 yuan in interest, and stipulated additional compensation of 47,000 yuan if the payment was not made, but Shen had still not received the outstanding amount as of May this year.
A local court subsequently imposed a consumption restriction order on the debtor, and Shen's case has reignited discussion in China about the risks of buying low-cost properties that lack legal protections, with a final court hearing scheduled for August 15, 2026.