[2] Compiled from: Shandong High Court
 
[2] "Home ownership for all" has always been a fundamental pillar of our national economy and people's livelihood, as well as an important safeguard for human rights. The state has consistently prioritized the housing issues of the people, emphasizing the "residential nature of housing" to ensure its optimal use and combat speculative buying, while also legally protecting the rental rights of tenants.

 

[3] On January 1, 2021, the current Contract Law will be abolished, and the Civil Code will take its place. Among the changes, significant revisions have been made to the legal provisions regarding house leasing. These revisions not only better align with the actual development of modern Chinese society but also enhance the protection of tenants' rental rights, while also considering the rights of landlords.

 

 
[4] 1. Houses with established habitation rights cannot be rented!
Relevant legal provisions
[5] Article 369 of the Civil Code of the People's Republic of China
[6] Habitation rights shall not be transferred or inherited. A dwelling with established habitation rights shall not be leased, unless otherwise agreed by the parties involved.
 
[1] The author's perspective
According to the above legal provisions, unless otherwise agreed by the parties, a house with a right of habitation established may not be leased again, which also means that even if a lease contract is signed, it will be deemed invalid.
 
Since the right of habitation is a newly introduced right in the Civil Code and has not appeared before, there was no need to pay attention to the issue of right of habitation when renting in the past. However, from January 1 next year, when signing a house lease contract, one must be careful whether the house has a right of habitation. To better protect the rights of tenants, it can also be stated in the lease contract that "the house has no right of habitation established, and no right of habitation shall be established during the lease period."
 
 
Second, if the lessor discovers that the house has been subleased, they should raise an objection promptly, with a time limit of only six months.
Relevant legal provisions
Article 716 of the Civil Code of the People's Republic of China
With the consent of the lessor, the lessee may sublease the leased property to a third party. If the lessee subleases, the lease contract between the lessee and the lessor remains valid; if the third party causes damage to the leased property, the lessee shall compensate for the loss.
If the lessee subleases without the consent of the lessor, the lessor may terminate the contract.
 
Article 718 of the Civil Code of the People's Republic of China
If the lessor knows or should have known about the sublease by the lessee but fails to raise an objection within six months, the lessor is deemed to have consented to the sublease.
 
[1] The author's perspective
According to the above legal provision, a tenant may sublease the premises to a third party with the landlord's consent. If the landlord does not agree to the sublease and the tenant subleases the premises without authorization, the landlord may terminate the lease contract with the tenant.
 
Since the right holder should actively exercise their rights and not passively neglect them, if the landlord does not agree to the sublease, they should raise an objection within six months from the date they know or should have known about the sublease. Otherwise, the landlord will be deemed to have consented to the sublease. Therefore, if landlords encounter such a situation, they must raise an objection as early as possible; otherwise, their rights may be lost through inaction.
 
 
III. If there is a dispute over the ownership of the premises or if the premises are sealed up, the tenant may terminate the lease.
Relevant legal provisions
Article 724 of the Civil Code of the People's Republic of China
If any of the following circumstances occur, causing the leased property to be unusable for reasons not attributable to the lessee, the lessee may terminate the contract:
(1) The leased property is lawfully sealed up, seized, or impounded by judicial or administrative authorities;
(2) There is a dispute over the ownership of the leased property;
(3) The leased property violates mandatory provisions of laws or administrative regulations regarding conditions of use.
 
[1] The author's perspective
Home ownership is a right that cannot be overlooked, as it forms a solid foundation for a lawful and reasonable lease right. Generally, a tenant rents a property for the purpose of having a place to live. If the ownership of the property is disputed or incomplete, the tenant will inevitably suffer. Therefore, even if the tenant has signed the lease and moved in, as long as the property ownership falls under any of the above three circumstances, the tenant may terminate the lease contract to protect their rights.
 
 
4. The tenant has a preemptive right to lease.
Relevant legal provisions
Article 734 of the Civil Code of the People's Republic of China
If the lessee continues to use the leased property after the lease term expires and the lessor raises no objection, the original lease contract shall remain effective, but the lease term shall be indefinite.
Upon the expiration of the lease term, the lessee of a house has the right to lease the house again on the same terms as a priority.
 
[1] The author's perspective
Generally, tenants are reluctant to move: first, moving is very tiring; second, it increases many costs and expenses.
 
However, in real life, it often happens that after the lease contract expires, the landlord tells the tenant, "I no longer want to rent to you," and the tenant has to search for new housing everywhere. Although transactions are free, when the tenant and a third party seek to lease under the same conditions, the tenant has a priority right to lease.
 
 
5. The purchase right of close relatives takes precedence over that of the tenant, and the tenant's priority purchase right is restricted.
Relevant legal provisions
Article 726 of the Civil Code of the People's Republic of China
If the lessor sells the leased house, they shall notify the lessee within a reasonable period before the sale, and the lessee has the right of first refusal under the same conditions; however, this does not apply if a co-owner of the house exercises the right of first refusal or if the lessor sells the house to a close relative.
 
[1] The author's perspective
Previously, the Contract Law only stipulated that when a landlord sells a house, the tenant has the right of first refusal. This inevitably led to a problem: if the landlord wanted to transfer the house to their own children or parents, they still needed to seek the tenant's opinion because the tenant had the right of first refusal. Especially when selling at a low price to their own siblings, the tenant also had the right of first refusal under the same conditions. This created a significant conflict with our social customs.
 
This time, the law has undergone major revisions: if a co-owner of the house exercises the right of first refusal or if the landlord sells the house to a close relative, the tenant does not have the right of first refusal. Additionally, even when the tenant does have the right of first refusal, they must clearly express their intention to purchase the house within 15 days; otherwise, it is deemed as a waiver of the right of first refusal.