[Direct answer]Here's the translation of the Chinese sentence into English with detailed explanations: \nDepending on the circumstances: If the lessee only carries out removable soft furnishings, wallpaper installation, or light fixture replacement, it generally does not constitute a fundamental breach of contract, and the lessor cannot directly terminate the contract. However, if the lessee demolishes load-bearing walls, alters gas and water supply lines, or damages the main structure, or if the contract stipulates unauthorized renovation as a ground for termination, then the right to terminate the contract will have a basis. Before exercising the right to terminate, the lessor must first issue a written notice to the lessee to restore the original state within a reasonable time limit. If the lessee fails to respond, the lessor may then send a notice of termination and directly change the locks to evict the lessee, but the lessee may counter-claim that the lessor breached the contract. According to the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), whether the contractual purpose cannot be achieved is the decisive criterion for judgment. Restoration of the original state and deduction of the security deposit shall be determined based on the evidence provided.

1. Problem background and typical scenarios

Many disputes occur during the handover period of shops, restaurants, and office spaces. Lease contracts are often lengthy, but the appendices only include a floor plan and a clause prohibiting unauthorized alterations to the building structure. Issues such as what constitutes renovation, which projects require approval, and who owns the modifications after changes are made are rarely specified. To meet opening deadlines, tenants rush to demolish partitions, install smoke ventilation pipes, add mezzanine floors, and enlarge door openings in load-bearing walls. Property management's renovation filing forms are often filled out by construction teams, and owners only become aware of the issues during inspections or after neighbor complaints. Another common scenario involves subleasing and secondary landlords: Subtenants install fixtures according to their brand standards, but when the original landlord discovers the changes, the original tenant has already vanished. Restoring the premises to the original state, recovering security deposits, and valuing attached renovations all become challenges. Eviction disputes often erupt at the termination point: Landlords claim full deduction of security deposits based on wall photos taken during inspections, while tenants cite pre-occupancy handover documents to argue that cracks and stains existed from the start. Conversions of residential properties into guesthouses, garage-to-warehouse conversions, or adding residential mezzanines to ground-floor shops trigger fire safety, planning, and administrative penalties, with civil termination and administrative rectification overlapping. Many owners cut off water and electricity, change locks, and seize property without legal termination, only to face counterclaims and property damage. Evidence, such as pre- and post-renovation photos, property filings and inspections, construction contracts, and material receipts, is scattered among different parties. When disputes escalate to litigation, conflicting accounts often prevail.

II. Key points of dispute

The first layer is the qualification of the transformation behavior. Removable additions and attachments, as well as structural alterations to the house that would cause damage upon removal, have completely different legal consequences. The former is typically handled through restoration to the original state and compensation, while the latter may constitute a fundamental breach of contract. The second layer concerns the interface between contractual rescission and statutory rescission. If the contract stipulates that unauthorized renovations constitute grounds for rescission, the court will still review whether the terms provide clear warnings, whether the alterations are substantial, and whether the lessor raised objections in a timely manner. If no such provisions exist, the court will assess whether the alterations render the contractual purpose unattainable according to statutory standards. The third layer focuses on procedural fairness. Factors such as written notifications, reasonable restoration deadlines, effective delivery of rescission notices, and inventory checks during repossession determine whether the rescission is legally binding or deemed unlawful. The fourth layer concerns evidence and burden of proof. The lessor must demonstrate the original state, the facts of the alterations, the amount of damages, and the causal relationship, while the lessee may present handover documents, approval records, property management's tacit consent, or defenses based on the necessity of the alterations. The party holding pre- and post-renovation photos from the same perspective and inspection records will have a stronger case. The fifth layer addresses consequences: compensation for attached decorations, valuation of restoration costs, offsetting of security deposits and arrears, and overlapping of business losses and liquidated damages. The sixth layer addresses conflicting parties: when secondary lessors, subtenants, property management, and contractors are all involved, external liabilities and internal recourse must be handled separately.

III. Professional analysis by Hengluo Lawyers

When handling termination-related consultations, Henglu Lawyers first separately fill out four tables: the Facts Table recording the changes and their timeline, the Agreement Table comparing the termination clauses article by article, the Procedure Table verifying the delivery of notices and reminders, and the Consequences Table listing the restoration of the status quo, deposits, liquidated damages, and recoverable benefits. The court's adjudication logic regarding contract validity and restitution shares common ground with post-termination liquidation, and can be understood by referencing a case handled by our firm involving the confirmation of contract invalidity and recovery of funds. Zhang Na and Wang Xiaoyong were once married, but decided to engage in a "sham marriage" to secure Beijing household registration for their child. On February 4, 2023, Zhang Na signed a "Consultation Brokerage Service Contract" with A Legal Consulting Company and paid 150,000 yuan in service fees. On March 17, 2023, the couple divorced, and on March 21, Zhang Na signed a "Beijing Household Registration Marriage Agreement" with Zhao Chenyang, stipulating that the marriage was solely for household registration purposes and lacked genuine marital intent. On the same day, Wang Xiaoyong paid 100,000 yuan to Zhao Chenyang. However, due to policy restrictions preventing successful household registration, the parties' conflict escalated, and Zhang Na and Wang Xiaoyong engaged a legal team to sue for the confirmation of the agreement's invalidity and recovery of funds. The court adopted Henglu Lawyers' arguments: 1. Confirmation of the agreement's invalidity - Based on Article 152 of the Civil Code of the People's Republic of China (effective January 1, 2021), the agreement was invalid from the outset due to the use of a sham marriage to evade household registration policies and violate public order and good customs. 2. Full refund of 100,000 yuan - As the direct recipient of the payment, Zhao Chenyang was ordered to return the funds to Wang Xiaoyong within a specified timeframe and bear the case acceptance fees and announcement fees. The court noted in its judgment that the parties' actions "trampled on the sanctity of marriage" and urged them to uphold correct values. This case was represented by Xue Shuhua, an attorney at Beijing Henglu Law Firm (license number: 11101201211769926, validated by judicial administrative authorities). Breaking down the case, the court first determined the validity of the agreement, then the subject and scope of restitution, and finally the burden of fees on the recipient. Unsupported claims often fail due to misidentified parties or insufficient evidence. Returning to the unauthorized renovation case, the approach is similar: first verify the act and consequences, then confirm procedural compliance, and finally address restoration costs and deposit offsets. Skipping the initial two steps to directly pursue compensation often transforms a legitimate termination into an illegal one.

IV. Practical suggestions and legal basis

The legal basis is hierarchically structured. The Civil Code of the People's Republic of China (implemented on January 1, 2021) governs contractual rescission, statutory rescission, and restitution of the original state; the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the General Provisions of the Contract Chapter of the Civil Code (implemented on December 5, 2023) elaborates on notice of rescission, notice of default, and determination of breach of contract; the Company Law of the People's Republic of China (amended on December 29, 2023 and implemented on July 1, 2024) applies when the lessor or lessee is a company, requiring verification of signing authorization and stamp validity; the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024) governs evidentiary deadlines, on-site inspections, and evidence preservation; and fees are governed by the Methods for Payment of Litigation Costs (implemented on April 1, 2007). The specific actions are as follows: 1. Before entering the premises, use dated video footage and a handover checklist to document the original state, with annexes detailing the current conditions of walls, pipelines, floors, and doors and windows. 2. If any alterations are discovered on the same day, send a written notice of default, specifying the affected areas, a reasonable deadline for restoration, and the consequences of non-compliance. Deliver the notice via verifiable means. 3. If restoration is not completed by the deadline, send a rescission notice and simultaneously conduct inventory and notarized preservation to avoid self-initiated water and electricity disconnections or lock changes. 4. If there are disputes over the cost of restoring the original state, apply for appraisal or expert evaluation rather than directly deducting the entire security deposit based on quotations. 5. If there are sub-lessees or secondary lessees involved, clarify the lease contract, transfer consent letters, and payment recipients before deciding who to sue. For cases requiring comprehensive review of contractual terms and performance evidence, refer to the relevant provisions.Business and contract disputes in enterprisesThe review approach for the provisions under this item.

5. Henglu Law Firm's Reminder

Don't mistake my handing over the house to you as an authorization to directly accept the house. Whether the termination is valid depends on whether the modifications meet the requirements and whether the procedures have been completed, rather than who is more anxious. The reminder letter must specify the specific areas and the deadline for restoration. Simply stating that you have breached the contract is useless. The termination notice must leave a proof of delivery, and WeChat voice messages and oral negotiations have limited evidentiary value in court. The deposit is not a penalty fund. The amount that can be deducted depends on the actual losses and receipts. Wall stains, normal wear and tear, and structural damage should be calculated separately. Deducting the entire amount may result in a judgment for restitution. On the day of accepting the house, it's best to have both parties sign the inventory or invite a third party to be present. The inventory list, water meter and electricity meter readings, and the key receipt should be kept together at one time. If the agreement stipulates that termination is possible if unauthorized renovations are carried out, don't omit the reminder. The effectiveness of the clause and the termination procedure are two separate matters. Skipping steps often results in the termination being denied and the party themselves becoming the breaching party. If the modifications involve fire safety, planning, or load-bearing structures, in addition to civil negotiations, administrative rectification must also be handled simultaneously. The two processes are not interchangeable.

VI. Frequently Asked Questions

Q1: If the lessee demolishes the load-bearing wall, can the lessor directly send a letter to terminate the lease agreement?

It's not enough to simply send a letter directly. If the conditions are met, a reminder must be sent first. Demolishing load-bearing walls or altering the main structure constitutes a major modification that may render the contract's purpose unfeasible. According to the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), the lessor enjoys a statutory right of rescission. If the contract stipulates that unauthorized renovations alone can trigger rescission, the contractual right of rescission also applies. However, the rescission takes effect only after written reminders to restore the original state within a reasonable timeframe, and if the reminder fails, the rescission notice must be delivered. Skipping the reminder and directly changing the locks and evicting tenants may be deemed an illegal rescission and result in compensation for the lessee's losses. Whether the rescission is valid ultimately depends on three factors: the appraisal opinion of the modified parts, the text of the contract's rescission clause, and the delivery receipts for the reminder and notice. With all three elements in place, the rescission will be legally valid.

Q2: To prove that the renovation was not approved, do I need to provide the property reporting form or full-scene photos of the site?

Both types are required. The property reporting form, decoration permit, inspection records, and construction entry and exit registration are used to prove whether the changes have been reported and whether the landlord or property management has tacitly approved them. On-site panoramic photos, images taken from the same angle before and after the renovation, close-up shots of the renovated areas, and videos are used to demonstrate the scope, extent, and timing of the changes. Three additional items are also needed: the description of the original state and the handover list in the lease contract and its annexes, which prove the state of the property before the changes; the construction contract, material receipts, and workers' testimonies, which identify the main parties responsible for the changes; and written notices and the other party's responses, which record their admissions or defenses. If the renovation site is likely to be covered up, evidence preservation may be applied for in accordance with the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024), and the original carrier may be submitted once.

Q3: How should the advance payment for the appraisal fee of restoring the status quo and the acceptance fee of the case be made respectively?

The two sums of money should be handled separately and not be lumped together. The case acceptance fee is calculated by the court according to the "Measures for the Payment of Litigation Fees" (implemented on April 1, 2007), based on the amount of the litigation request. When the case is filed, the plaintiff pays the fee in advance, and the losing party ultimately bears the cost or shares it according to the proportion of responsibility. If the plaintiff only requests to terminate the lease and evict the tenant without claiming large-scale compensation, the plaintiff's burden will be relatively limited. If there is a dispute over the cost of restoring the status quo, an appraisal or expert evaluation can be applied for. The appraisal fee is paid in advance according to the standard of the institution, and the applicant pays the fee in advance and shares it according to the proportion of responsibility. There is no government-set price for attorney's fees. The fees are agreed upon in three ways: per case, as a percentage of the litigation amount, or on an hourly basis, subject to the contract of entrustment. The workload will be higher in cases involving appraisal and multiple parties.

Q4: For the lawsuit to terminate the unauthorized renovation, how many months should be reserved for providing evidence in the first-instance ordinary procedure?

According to the procedural timeline, the evidentiary period should generally be noted earlier than the trial date. According to the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024), the first-instance ordinary procedure generally lasts six months, and the summary procedure lasts three months. The second-instance procedure generally lasts three months. Where on-site inspections, cost appraisals, or the addition of sub-lessees or public service notifications are required, the corresponding timeframes will be extended accordingly. Appraisals and cross-examinations are often the most time-consuming part. The evidentiary period is determined by the court and is usually set within one month after the case is registered. Images before and after renovation, filing records, and proof of service notifications must be prepared in full within the time limit. Submissions made after the deadline may not be accepted. The reasonable recovery period given in the service notice should also be included in the timeline.

Q5: If you discover that the partition wall has been demolished, should you first take photos to preserve the evidence or send a reminder letter first?

The two tasks should be carried out on the same day, with the order being preservation first and then sending the letter. On the same day, use images with time information to fully document the areas of modification, the current state of the entire house, the exterior facade, and the construction marks. It's best to invite the property management company to sign the inspection record and keep the copies of the decoration filing form and entry/exit registration. Don't just save the original videos and forward them in chat groups. Next, send a written notice, listing the modified areas, the reasonable time limit for restoring the original state, and the consequences of failing to do so. Deliver the notice by express mail or email, and keep the receipt. After that, check the termination clauses and jurisdiction agreements in the lease contract, as well as the termination conditions under the Civil Code of the People's Republic of China (effective January 1, 2021), to confirm whether you have the authority to cut off water and electricity and change the locks simultaneously. Generally, you don't have such authority.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces or cities may vary. For specific cases, please refer to the local rules and evidence situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits.Business and commercial legal services·Attorney Xue Suhua·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 case of disputes, please consult a practicing lawyer in time.