[Direct answer]In the Beijing area, when purchasing a rented house, the original lease agreement is usually still valid for the buyer, which is the principle of "the sale does not terminate the lease". According to Article 725 of the Civil Code of the People's Republic of China, if the ownership of the leased property changes during the term of possession by the lessee in accordance with the lease contract, it does not affect the validity of the lease contract. That is to say, after you buy the house, you must continue to honor the original lease agreement, and the lessee has the right to stay until the lease expires. You cannot unilaterally evict them or increase the rent. The exceptions are cases where the lease is established after a mortgage or seizure, etc. legal circumstances. Before buying a house, it is necessary to check the lease and mortgage status and stipulate the responsibility for clearing the lease in the contract. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

1. Problem background and typical scenarios

Leasehold transactions are very common in the sale of second-hand houses and shops. Typical scenarios include: the seller conceals the fact of renting out the property, and the buyer only discovers that there are tenants living there after the transfer of ownership; the lease rent is significantly lower than the market price and the lease term is very long, so the buyer effectively "takes over" the low-yielding property; the tenant claims that the sale does not terminate the lease and refuses to move out; and the seller signs a long-term lease with relatives or friends in reverse to resist the transfer of ownership. Many buyers only focus on the ownership and price, ignoring the verification of the lease and mortgage, and get into a stalemate of clearing the lease after the transfer of ownership. For related contract reviews, please refer to the following materials for further analysis:Business and contract dispute services for enterprisesReview and approval clauses.

II. Key points of dispute

There are three key points. Firstly, the application of the principle that a sale does not terminate a lease: if the lease has been established before the sale and the lessee actually occupies the property, the buyer must comply with it. Secondly, exceptional circumstances: if the lease is established after the establishment of a mortgage or after the property is sealed by the court, the lease cannot prevail against the prior mortgagee or the applicant for enforcement. Thirdly, the authenticity of the lease: backdated leases, fraudulent leases, or leases that have been signed but not actually occupied can be invalidated. For matters involving enforcement, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesDetermine whether the lease can resist enforcement.

III. Professional analysis by Henglue Lawyers

Based on our observations of real estate transactions, the most common pitfall of buying a house with a lease is "buying without checking first". Many buyers only find out after the transfer that the lease term lasts for several years, the rent has been prepaid by the seller, and they can neither take possession of the house nor collect the rent. Henglue Lawyers usually recommend the following: visiting the property in person before signing the contract, checking the lease and mortgage registration, requiring the seller to disclose the lease and promise not to conceal any information; stipulating a clause in the sales contract requiring "no lease or clearing the lease on schedule" and setting out the breach of contract compensation, and transferring the collected rent to the buyer or deducting it from the purchase price. For leases suspected of being backdated, buyers can claim that they did not actually occupy the property or allege collusion to deny their enforceability. In cases involving ownership disputes, buyers can pursue legal action accordingly.Special services and other case servicesHandle it.

IV. Practical suggestions and legal basis

The legal basis is Article 725 of the Civil Code of the People's Republic of China (effective January 1, 2021) (Sale does not invalidate lease), Articles 703 to 720 (Effectiveness of lease contracts), Article 405 (Mortgage does not invalidate lease, subject to registration); and the provisions on the effectiveness of the lease against the seizure of property. Practical advice: Before buying a house, visit the property in person and check the real estate registration, mortgage and lease registration; require the seller to provide a lease disclosure and a promise to clear the lease; specify in the contract the handling of the lease, the ownership of the collected rent, and the compensation for breach of contract; after the transfer of ownership, legally assume the lease or claim the seller's breach of contract according to the contract. In the case of enforcement, it can be combined with the above provisions.Creditor-debtor relations and enforcement case servicesAdvance.

5. Henglue Law Firm's Advice

When buying a house with a lease, don't just focus on the price. First, visit the property in person to confirm whether anyone is living there, check the mortgage and lease registration, and require the seller to disclose the lease in writing and promise not to backdate it. The contract should clearly stipulate the responsibilities of the lease, the ownership of the collected rent, and high compensation for breach of contract. If the lease was established after the mortgage or seizure, the buyer can claim not to be bound by it. After the transfer, the buyer should take over the lease in accordance with the principle of "the transfer of ownership does not affect the continuation of the lease", to avoid being held liable for unlawful evictions. For specific transactions, you can seek assistance from a professional intermediary or lawyer.Special services and other case servicesReview.

VI. Frequently Asked Questions

Q1: Is the original lease valid for the buyer, and can they evict the tenants?

The original lease agreement is valid for the buyer when the conditions are met, and the buyer cannot unilaterally evict the lessee. According to Article 725 of the Civil Code, if the lease precedes the change of ownership and the lessee has actually occupied the property, the lease agreement will not be affected by the change of ownership. You must fulfill your obligations until the lease expires. Whether you can "win" the lease dispute depends on the authenticity of the lease agreement, the time of its establishment, and whether there are exceptions: if the lease agreement is backdated, the lessee has not actually occupied the property, or the lease was established after the establishment of a mortgage or seizure, you can claim not to be bound by the agreement and evict the lessee; otherwise, you must assume the obligations. It is recommended to first verify the lease agreement and the occupancy situation, and do not forcibly change the locks or evict the lessee to avoid bearing liability for infringement. If necessary, consult a lawyer to assess the scope of legal defenses.

Q2: When buying a rented house, what evidence do I need to prepare?

The core evidence includes: the original housing lease contract and rental payment receipts (proving the lease term, amount, and establishment time), evidence of the lessee's actual possession (utilities bills, living footage, and neighbor's testimonies), real estate registration and mortgage inquiry records (proving whether the mortgage or seizure preceded or followed the lease), written documents disclosing the lease by the seller, and the contract of sale and purchase. The evidence is organized around "whether the lease was established and possession took place—whether there were exceptions—and whether the seller concealed information." If there are missing materials, you can apply to retrieve the registration information or supplement with viewing records to avoid being forced to accept an unfavorable lease due to insufficient evidence.

Q3: How much do lawyers' fees and litigation costs amount to in a dispute over a lease that cannot be broken by a sale or purchase?

The litigation fees for housing sale disputes are calculated based on the amount of the litigation subject and are borne by the losing party; if the claim is only to confirm the invalidity of the lease or the compensation for breach of contract, the subject shall be calculated according to the amount of the claim. The attorney's fees are negotiated on a per-case basis or according to the amount of the subject, with no uniform standard. The specific fees shall be subject to the retainer contract. Disputes over the right of lease often involve huge amounts of money, so it is recommended to first calculate the breach of contract compensation or price difference that can be claimed, and then weigh it against the attorney's fees before suing. If the litigant is financially struggling, he/she can negotiate contingency fees (subject to certain limits) or apply for legal aid, without having to give up his/her legitimate rights and interests due to cost concerns.

Q4: How long does it usually take to resolve a lease dispute in a sale and purchase transaction?

The first-instance ordinary procedure for housing sales and lease disputes lasts six months, and the summary procedure lasts three months; the time period for disputes involving rights confirmation and enforcement is longer. For disputes over the validity of leases, it is often necessary to provide evidence in conjunction with the time of mortgage and seizure, and the time period depends on the complexity of the case. Overall, from negotiation to the second-instance trial, it often takes more than half a year to over a year. Note the relevant statutes of limitations: the three-year statute of limitations for suing after knowing that rights have been infringed; for enforcement-related disputes, the seizure of leased property is subject to the enforcement procedures. It is recommended to complete the verification of leases and mortgages before the transfer of ownership, and to assert rights promptly after the transfer to avoid the loss of evidence or being passive in handling the situation.

Q5: If I buy a house with a lease, what should I do specifically?

Here are the four steps recommended: 1. Before signing the contract, inspect the property in person, check the real estate registration and mortgage/leasing records to confirm whether the house is occupied by others. 2. Require the seller to disclose the lease agreement in writing and promise not to conceal any information or backdate documents. Specify the responsibilities for clearing the lease and the ownership of the collected rent. 3. Include clauses on lease handling and high-amount breach-of-contract penalties in the sales contract to protect the buyer's interests. 4. After the transfer of ownership, if any abnormalities in the lease agreement are discovered, collect evidence to claim that the seller breached the contract or that the lease is not binding. If necessary, file a lawsuit to clear the lease and seek compensation. Throughout the process, keep records of inspections, inquiries, and communications. If facing complex ownership disputes, hire a lawyer to intervene.

The above Q&A is mainly based on judicial practices in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 real estate transactions·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. If you encounter disputes, please consult a practicing lawyer in time.