[Direct answer]Under normal circumstances, it constitutes a breach of contract. Article 708 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that the lessor shall deliver the leased object to the lessee in accordance with the agreement and maintain the leased object in conformity with the agreed purpose during the lease term; Article 722 stipulates that if the lessee fails to pay or delays in paying the rent without a valid reason, the lessor may request the lessee to pay the rent. If the lessee still fails to pay the rent within a reasonable period after being reminded, the lessor may rescind the contract. Except for the circumstances of rescission stipulated in the contract or by law, if the lessor recovers the house in advance during the lease term, it shall be deemed as a failure to perform the obligations according to the contract and shall bear the liability for breach of contract. The lessee may request the lessor to continue to perform the contract, compensate for the losses, or rescind the contract and return the remaining rent and deposit; if the contract stipulates a breach of contract penalty, it shall be dealt with in accordance with the agreement; if the agreement is unclear, the lessee may claim the actual losses.
I. Problem background and typical scenarios
There are various reasons why landlords may evict tenants prematurely: the need to vacate the property for sale, the hope of renting out the property at a higher price after the rent increase, the landlord's own use or use by relatives, and the demand for repossession after conflicts with tenants over repairs or expenses. Typical scenarios include: the lease period has not yet expired, but the landlord requires the tenant to move out within one month on the grounds that the house is for sale; the landlord claims to terminate the contract on the grounds that the tenant has not paid the rent as agreed, but the notice procedure has not been completed; after the house is sealed or auctioned by the court, the new right holder demands that the tenant vacate the property. The losses of tenants usually include moving expenses, the market difference in re-renting the property, the investment in decoration or additions, and the operating losses of the business premises. In the judicial practice of Beijing, the determination of breach of contract and the scope of compensation are based on the contractual provisions and actual losses. Relevant disputes can be referred to for reference.Property transactions and construction projectsThe lease practices of real estate.
II. Key points of contention
First, whether the conditions for termination are met: The landlord claims that the termination needs to have a contractual basis or statutory grounds, and the lessee's delay in paying the rent must go through the reminder procedure. Second, the boundary between breach of contract and legal termination: Whether taking possession of the property in advance constitutes exercising the agreed right of termination or unilateral breach of contract. Third, how to determine the scope of compensation: including the return of the remaining rent, the refund of the deposit, moving expenses, the difference in rental prices when re-renting, and decoration losses. Fourth, adjustment of the penalty clause: If the agreed penalty is too high or too low, the lessee can request the court to adjust it. Fifth, how to prove the losses: The lessee needs to provide expense receipts, lease information, and communication records. Sixth, whether the lessee can refuse to move out: During the validity of the contract, the lessee can claim to continue to perform the contract, but needs to weigh the cost of litigation against the cost of maintaining the relationship. The above disputes determine the specific amount of compensation.
III. Professional analysis by Henglue Lawyers
Henglue Law Firm once represented a dispute over breach of contract for delayed delivery: On April 30, 2021, Zhang Quan signed the "Beijing Commercial Housing Pre-sale Contract" with a real estate development company in Beijing to purchase a house in a certain residential area with a total price of 6,841,972 yuan, and agreed to deliver it before June 15, 2023. The supplementary agreement stipulated that if the seller delayed delivery due to its own reasons, it would be granted a 90-day grace period. After the grace period expired, the seller would pay the breach of contract penalty at a rate of 0.01% of the total price of the house per day. However, the company did not deliver the house until March 5, 2024, nearly nine months later. Zhang Quan entrusted our lawyers to sue the company, demanding the payment of the breach of contract penalty of 118,366.12 yuan from September 14, 2023 to March 5, 2024. The dispute focused on three points: whether the events after the signing of the contract could constitute force majeure, whether the grace period could be cumulated with other delays, and whether the standard of the breach of contract penalty should be supported. The attorney reviewed the provisions of the contract and the supplementary agreement regarding the delivery time, the grace period, and the breach of contract penalty, and collected payment receipts, move-in notifications, and completion and acceptance materials to form a chain of evidence. He argued that the relevant circumstances could have been foreseen at the time of contract signing and did not constitute force majeure, so the grace period should be strictly applied according to the contract. The court adopted the above opinion and ruled to support the full breach of contract penalty of 118,366.12 yuan. This case reflects the judicial principle that the contractual delivery time should be strictly enforced and the breaching party should bear compensation liability according to the contract. It also provides a reference for judging the breach of contract by landlords in lease relationships. This case was handled by Beijing Henglue Law Firm.Tian Jia YanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action suggestions: First, when signing the contract, clarify the conditions for early termination, the notice period, and the standard of the breach of contract penalty; Second, when the landlord requests to take back the house, require him to explain the reasons and provide a written notice; Third, keep the payment receipts for the rent and deposit, the invoices for the moving expenses, and the new lease contract to provide evidence of the losses; Fourth, you can choose to continue to perform the contract or to seek compensation for breach of contract, and then decide after assessing the costs; Fifth, if no agreement can be reached through negotiation, promptly file a lawsuit to avoid further losses. Legal basis: Articles 509, 577, 585, 708, and 722 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding the performance of contracts, breach of contract liability, breach of contract penalties, and lease contracts. For disputes related to leases and real estate, please refer to the relevant provisions.Property sales and construction projectsFor matters involving claims for compensation and enforcement, you may refer to the following documents for reference:Creditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Advice
First, whether there is a basis for taking over the house in advance? First, check whether the conditions for termination stipulated in the contract are met, and then see whether the procedures such as giving notice have been completed. Second, the lessee's losses include not only the remaining rent, but also the moving expenses, the difference in rent between the new and old houses, and the investment in decoration, all of which can be claimed together. Third, when the agreed penalty is obviously disproportionate to the actual losses, both parties may request the court to adjust it. Fourth, if the landlord wants to sell the house, it doesn't mean that he can take back the house at any time. The lessee's right to live is protected by law. Fifth, for those involving litigation, it is necessary to fix and provide evidence of the losses as soon as possible to avoid the loss of evidence over time. For those involving the enforcement stage, it can be done throughCreditor's rights and debts, and enforcementUnderstand the path.
VI. Frequently Asked Questions
Q1: Is it definitely a breach of contract if the landlord takes possession of the property in advance?
Not necessarily. The key lies in whether there are contractual or legal provisions for termination, and whether the required procedures have been completed. If the lessee still fails to pay the rent after being reminded, the landlord can terminate the contract according to law; otherwise, prematurely taking back the property generally constitutes a breach of contract. The key lies in whether the contractual conditions for termination have been met and whether procedures such as giving a notice have been completed.
Q2: If the landlord breaches the contract, what compensation can I claim?
The party may claim the continuation of the performance of the contract, or the termination of the contract and request the return of the remaining rent and deposit, while claiming compensation for actual losses, including moving expenses, the market difference in re-renting, reasonable investments in decoration and additions, and necessary operating losses. All items shall be supported by receipts and vouchers, and the party shall list the calculation basis item by item when making the claim.
Q3: What should I do if the contractually agreed penalty for breach of contract is too high or too low?
You can request the court to adjust it. According to the Civil Code, if the agreed penalty for breach of contract is excessively higher than the losses caused, the party may request a reasonable reduction; if it is lower than the actual losses and the party can prove the losses, they may request an increase. The court will make a judgment based on the evidence. The adjustment shall be based on the evidence and the losses, and the court shall make a judgment based on the facts of the case.
Q4: The landlord said he wants to sell the house. Do I have to move out immediately?
Generally, it's not necessary. Changes in the ownership of the house during the lease period do not affect the validity of the lease contract. In principle, the new right holder should continue to perform the original lease contract. If the other party insists on requiring you to move out, you can ask them to bear the liability for breach of contract or negotiate a compensation plan separately. If the other party insists on evicting you, you can ask them to bear the liability for breach of contract or negotiate a compensation plan separately.
Q5: What should I do if the landlord forcibly changes the locks or clears out the house?
It is recommended to immediately call the police and keep the evidence, while documenting the damage to the house and items in writing. Forced eviction may involve infringement, and the lessee can claim to stop the infringement and compensate for the losses; at the same time, combined with the breach of contract clauses in the lease contract, the lessee can also claim corresponding compensation. During the process, attention should be paid to keeping the police report and the scene images, which can be used as the basis for loss determination.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.