[Direct answer]Yes, but there are legal conditions. According to Article 726 of the Civil Code of the People's Republic of China, if the lessor sells the leased house, he shall notify the lessee within a reasonable period before the sale, and the lessee shall have the right of priority to purchase under the same conditions; except that the co-owners of the house exercise the right of priority to purchase, or the lessor sells the house to a close relative. If the lessor fails to notify the lessee or hinders the lessee from exercising the right of priority to purchase, according to Article 728, the lessee may request the lessor to compensate for the losses, but generally cannot claim that the sales contract between the lessor and the third party is invalid.
1. Problem background and typical scenarios
During the rental period, if the landlord suddenly sells the property, tenants often face confusion: whether they will be "evicted", whether they can purchase the property first, and how to handle the security deposit and lease term. Typical scenarios include: the landlord transferring ownership to a third party without notice; the landlord notifying tenants but imposing harsh conditions or setting an overly short deadline; the third party offering a higher price; tenants wanting to purchase but lacking sufficient funds; and the new landlord demanding early vacating of the property. In practice in Beijing, the preemptive right of purchase and the "sale does not terminate the lease" principle are often mentioned simultaneously, but they serve different purposes: the former addresses whether tenants can purchase the property first, while the latter addresses whether they can continue to rent the property. It is advisable to first understand the relevant disputes before addressing them.Real estate sales and construction project services.
II. Key points of dispute
The focus of the dispute lies in five aspects. Firstly, whether the obligation to notify has been fulfilled, that is, whether a reasonable period of notice was provided before the sale. Secondly, how to define "equal conditions", and whether the price, payment method, and payment period are comparable. Thirdly, exceptional circumstances, such as the preemptive purchase rights of joint owners and close relatives, which may override the preemptive purchase rights of lessees. Fourthly, remedies. If the preemptive purchase right is infringed, should the buyer and seller's contract be declared invalid, or can only compensation be claimed? Fifthly, the principle that the lease does not terminate with the sale. According to Article 725 of the Civil Code, if the ownership of the leased object changes during the lessee's possession according to the lease contract, the validity of the lease contract shall not be affected, and the new landlord shall generally assume the obligations of the original lease contract. In cases involving eviction enforcement, this can be combined with other relevant provisions to determine the specific legal consequences.Creditor-debtor relations and enforcement case servicesAnticipate risks.
III. Professional analysis by Henglue Law Firm
In practice, the preemptive right of purchase is a right to form ownership, but the judiciary often resorts to "compensation for losses" rather than "confirming the invalidity of the sales contract" to remedy it. Therefore, lessees should not pin all their hopes on "buying it". From the lessee's perspective, they should express their intention to purchase within a reasonable period after receiving the notice and keep written records; if they do not receive the notice but learn about it later, they should claim their rights in a timely manner. Evidence such as the lease contract, rental payment receipts, records of the landlord's notification or lack thereof, the transaction price and conditions of third parties, and communication records between the parties are all crucial. For the lessor, there is a risk of compensation if the property is sold without notice; for the lessee, it is usually easier to claim the right to continue leasing than to claim the right to buy, especially in situations where they already have actual possession and the lease term has not expired.
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) (the principle of "sale does not affect lease"), Article 726 (the lessee's preemptive right to purchase), and Article 728 (compensation for infringing the preemptive right to purchase); and the provisions on the lessee's preemptive right to purchase in the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Urban House Lease Contract Disputes (amended on December 29, 2020). Practical suggestions: First, when signing the lease agreement, clarify the clauses that the preemptive right to purchase or sale does not affect the lease; Second, respond in writing promptly after receiving the notice of sale to avoid being deemed to have waived it; Third, keep complete payment and communication vouchers to prove possession and the lease term; Fourth, if claiming to continue to perform the lease contract, explicitly require the new landlord to assume the original contract; Fifth, for claims for compensation for losses, quantify the actual losses caused by failing to purchase or being forced to move. The overall solution can be implemented through the following steps:Special services and other case servicesCoordinate and plan things in an organized and efficient way to achieve a specific goal or complete a task.
5. Henglu Law Firm's Advice
The preemptive right of purchase is not a "must-buy right". The core requirements are equal conditions and a reasonable timeframe. When the price and payment method are clearly unfavorable, it becomes more difficult to exercise this right. Oral claims are hard to preserve, so it's essential to put them in writing and keep records of delivery. If the house has already been transferred but the tenant still wants to stay, the focus shifts to the principle that a lease agreement remains valid for the new landlord. If the tenant wants to buy but has missed the opportunity, the focus shifts to claiming compensation for losses. When the new landlord forcibly cuts off water and electricity or evicts the tenant, it's necessary to fix the evidence in time and protect one's rights according to the law. Relevant service entry points can be accessed throughBeijing Henglu Law FirmI understand.
VI. Frequently Asked Questions
Q1: If the landlord sells the house, can the tenant's preemptive right to purchase it definitely be exercised?
Not necessarily. According to Article 726 of the Civil Code, the lessee must have the priority to purchase under the same conditions, and the fractional co-owner may exercise the right of first refusal, except that the lessor sells it to a close relative; the lessor must also give notice within a reasonable period before the sale. If the third party's conditions are more favorable, the lessee fails to express his intention within the time limit, or there are the above-mentioned exceptions, the right of first refusal may not be realized. In this case, the remedy shifts to requesting compensation for losses according to Article 728.
Q2: What evidence is required to assert the right of first refusal or to continue the lease?
The key evidence includes: a legally valid lease contract and rental payment receipts (to prove possession and the lease term), the landlord's notice of sale or records of failure to notify, the transaction price and conditions of the third party, and communication records between the two parties regarding the purchase or renewal of the lease. If claiming compensation for infringement of the preemptive right to purchase, it is also necessary to prove the actual losses caused by the loss of the purchase opportunity due to the failure to receive notification, such as the price difference of purchasing another property and relocation expenses.
Q3: For handling such disputes, what are the approximate costs of litigation and attorney fees?
The litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Costs" (implemented on April 1, 2007). In property cases, the fees shall be calculated based on the proportion of the subject matter value; in non-property cases, the fees shall be charged per case. The losing party shall bear the fees or share them proportionally; for claims for compensation for losses, the fees shall be calculated in accordance with property cases. The attorney's fees shall be determined by agreement on a per-case basis, based on the proportion of the subject matter value, or on an hourly basis, subject to the written power of attorney. There is no uniform standard for the fees. If the case involves the evaluation of the value of the house or the appraisal of the price difference, corresponding fees will also be incurred. It is recommended to make a budget in advance.
Q4: How long does it take for such disputes to go from being sued to reaching a resolution?
Civil cases subject to summary procedures are generally concluded within three months, and ordinary procedures typically take six months; cases involving appraisals, expert opinions, or house evictions will take longer. If either party appeals, the second-instance trial usually takes about three months. If there is also house eviction involved, the duration of the process will depend on the property investigation and the cooperative attitude of the person subject to enforcement. During the litigation process, the lessee should continue to pay the rent according to the contract and maintain possession of the property to avoid being regarded as having waived their rights.
Q5: The landlord has sold the house. What should I do now specifically?
It is recommended to proceed in four steps: First, verify the transaction and determine whether the ownership has been transferred and the transaction price and conditions; Second, make a written claim and clearly express to the landlord the exercise of the preemptive right of purchase or the request to continue to perform the lease contract; Third, fix the evidence and preserve the lease contract, payment vouchers, notifications, and communication records; Fourth, protect rights according to law. If the preemptive right of purchase is infringed, request compensation for losses; if the lease relationship is affected, require the new landlord to assume the contract in accordance with the principle of "the lease remains in effect despite the transfer of ownership"; and, if necessary, entrust a lawyer to sue and apply for preservation of evidence.
This article is written based on the common judicial interpretation 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 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.