[Case Summary]This case involves a dispute over a housing lease contract. In 2015, Liu Dashan and his son, Liu Hui, leased a site in Changping District that had not obtained a construction project planning permit to Li Hao, with an agreed annual rent of 2.5 million yuan. Since 2018, Li Hao has stopped paying the rent, accumulating an arrears of 8.996 million yuan. The father and son duo entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer filed a lawsuit. The core disputes are: the validity of the unlicensed housing lease contract, and whether it is possible to claim possession and use fees after the contract is invalidated. The lawyer claimed that the possession and use fees should be paid according to the rental standard based on the Civil Code and was supported. The court ruled that the lease contract was invalid, but ordered Li Hao to pay the outstanding possession and use fees of 8.996 million yuan. Applicable legal provisions: Articles 153, 157 of the Civil Code, etc.

I. Review of the case

"Do I still have to pay the rent even if the lease contract is invalid?" and "Can I recover the occupancy and usage fees if I rent out an unlicensed house?" are the most common dilemmas faced by landlords. On December 24, 2015, Liu Dashan and his son Liu Hui signed a "Site Lease Agreement" with Li Hao, leasing a site located in Changping District, Beijing to Li Hao. The land area is 66,000 square meters and the building area is 5,000 square meters. The lease term is from January 1, 2016 to December 31, 2050, a total of 35 years. The annual rent is 2.5 million yuan, with an increase of 500,000 yuan every five years, and the rent is paid annually.

In the early stage of the contract, both parties performed their obligations according to the agreement. Li Hao paid the first year's rent of 2.5 million yuan in 2016 and part of the rent of 1.754 million yuan in 2017, but stopped paying from 2018 onwards. The leased property in question was built by Liu Dashan and his son on the leased wasteland, without obtaining the approval procedures for the construction project planning. It was demolished and vacated in 2022. Li Hao moved out at the end of March 2021, and the lease relationship was actually terminated. The total arrears in rent reached 8.996 million yuan. After repeated attempts to collect the rent without success, Liu Dashan and his son Liu Hui entrusted a collection agency to recover the arrears in rent.Xiong BinrongThe lawyer filed a lawsuit.

II. The focus of the case

  • Focus 1: The validity of unregistered housing rental contracts.The lease contract concluded by the lessor for the house that has not obtained the construction project planning license shall be deemed invalid according to law.
  • Focus II: Can the occupancy and usage fees be claimed after the contract is invalidated?The original plaintiff encountered obstacles in proving the basis of the "rent", and whether it can be legally adjusted to occupancy and usage fees is the key issue.
  • Focus 3: The unpaid amount and the interest on the occupied funds.The calculation of the 899,600 yuan in royalties, the start and end dates of its application, and whether the interest claim is supported.

III. The professional intervention of Hengluo Law Firm

The plaintiff alleged in the original lawsuit that:Li Hao actually occupied and used the site involved in the case for farming, and should pay the overdue occupancy and use fees of 8.996 million yuan in accordance with the contractually agreed rental standard, and claim the interest on the occupied funds from July 30, 2018 onwards.

The defendant (Li Hao) argued that:If a defendant fails to appear in court without a valid reason after being legally summoned by the court, it shall be deemed that he/she has waived the right to defend and cross-examine the evidence.

Legal opinion of Hengluo Law Firm:Xiong BinrongAfter investigation, the lawyer confirmed that the house involved in the case had not obtained a construction project planning permit, and the lease contract was legally invalid. However, according to the provisions of the Civil Code and other laws, if the parties request to pay the house occupation and use fees according to the contractual rent standard after the contract is invalid, the people's court shall generally support it. The lawyer comprehensively reviewed the "Site Lease Agreement", the rent details, the bank transfer records, the WeChat message collection records, and the eviction statements, accurately calculated the period of arrears from January 1, 2016 to March 31, 2021, and determined the claim amount of 8.996 million yuan, forming a complete chain of evidence.

IV. Outcome of the case

The court ruled that the lease contract signed by the lessor for the house that had not obtained the construction project planning license is invalid, and the "Site Lease Agreement" involved in the case is also invalid. After the contract is invalid, the parties' request to pay the occupation and use fees according to the contractual rental standards shall be supported. The evidence submitted by the plaintiff can prove that Li Hao occupied and used the leased property from January 1, 2016 to March 31, 2021, and his claim to pay the outstanding occupation and use fees of 8.996 million yuan according to the agreed rental standards is legal and justified. Regarding the interest on the occupied funds, as the parties have not agreed on it, it shall not be supported. Finally, in accordance with Articles 153, 157 of the Civil Code of the People's Republic of China and Articles 67, 147 of the Civil Procedure Law, the court ruled that Li Hao shall pay Liu Dashan and Liu Hui the occupation and use fees of 8.996 million yuan within ten days after the judgment takes effect; the case acceptance fee of 74,772 yuan and the announcement fee shall be borne by the defendant; and other litigation requests shall be rejected.

5. Hengluo Law Firm's Reminder

The lessor shall strictly complete the procedures for documents such as the construction project planning permit, and the lessee shall carefully verify the legality and compliance of the house before signing the contract. The invalidity of the lease contract does not mean that the lessee can "live for free", and the occupancy and use fees can still be recovered according to law. This case is handled by Beijing Hengluo Law Firm [Xiong BinrongThe attorney (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent. In this case, the attorney accurately applies the rule of discounted compensation after the contract is invalid, and helps the client recover nearly 9 million yuan in occupancy fees.

VI. Frequently Asked Questions about Housing Leasing Cases

  1. Q: Is a lease contract valid without a construction project planning permit?
    A: Lease contracts concluded by lessors for houses that have not obtained construction project planning permits or are not built in accordance with the permits shall be deemed invalid according to law.
  2. Q: If the lease contract is invalid, can I still get back the usage fee?
    A: Yes. If the party requests to pay the fee for the use of the house in accordance with the rent standard agreed in the contract, the people's court will generally support it.
  3. Q: What's the difference between royalties and rent?
    A: The rent is based on a valid contract; the occupancy fee is a compensation for the actual occupation of the property after the contract is invalid or revoked, which is of a different nature but can be calculated with reference to the rent standard.
  4. Q: What evidence should be preserved when collecting rent?
    A: You should keep the lease contract, the rent breakdown, the bank transfer records, the WeChat message collection records, the eviction notices, and other relevant documents to form a complete chain of evidence.
  5. Q: Can the request for interest be supported if the contract is invalid?
    A: If the parties have not agreed on the interest during the period of capital occupation, the request is usually lacking in basis and the court generally will not support it.