[Direct answer]First, identify the authenticity of the lease agreement, and then decide whether to keep or discard it. The principle is that the sale does not override the lease: if the lease agreement was genuinely established before the seizure or mortgage, the buyer must bear the lease obligations after the auction, and the lease term will expire or be terminated through negotiation; however, in practice, many lease agreements are maliciously fabricated by the debtors—they are signed after the seizure, with excessively long lease terms, full payment of the rent in one go, and obviously low prices. Such lease agreements cannot oppose the auction, and the buyer can claim to have them removed. It's much more efficient to thoroughly understand the description of the lease agreement in the announcement and verify the occupancy status on-site before the auction than to try to find a solution after the auction.

1. Problem background and typical scenarios

The prices of foreclosed properties are very attractive, but the announcement states, "Auction with a lease, with a lease term of 20 years and the rent having been paid in full in advance." Should you buy it or not? If it's a genuine lease, you'll have to bear the costs of renting for over a decade; if it's a fake lease, you'll have to sue to clear it up. Unclear leases are one of the biggest pitfalls of foreclosed properties.

II. Key points of contention

First, review the authenticity and time points of the lease agreement: whether it was established before or after the seizure. Second, identify the characteristics of malicious leases: ultra-long term, huge prepayment, and related-party transactions. Third, determine the path to rescind the lease: raise objections to the enforcement and claim that the lease contract is invalid. Fourth, clarify the division of responsibilities for eviction and recovery of possession.

III. Professional analysis by Henglue Lawyers

Based on Henglue Lawyer's experience in handling cases involving execution and real estate transactions, the review of foreclosed property leases follows four steps: 1. **Timeline Comparison**: Retrieve the time records of the seizure, mortgage registration, and lease agreement. If the lease was established before the mortgage or seizure, the buyer will inherit it according to the "sale does not extinguish the lease" rule. If signed afterward, it will not affect the auction and delivery, and the court can legally remove the lease burden. 2. **Authenticity Assessment**: Genuine leases typically show traces of actual use: the rent level aligns with market rates, the payment method is reasonable, and the use matches the property condition. Malicious leases typically feature characteristics such as a lease term of over 10 years, lump-sum payments to the debtor's relatives or friends, signing shortly before enforcement proceedings, or a kinship or debt connection between the lessee and the debtor. 3. **Procedural Challenges**: For malicious leases, apply to the enforcement court to reject the lease relationship or file an enforcement objection to remove it. If the lease harms the creditor's interests, claim its invalidity or rescission. 4. **Practical Arrangements**: For genuine leases, evaluate the rental income and remaining lease term as bargaining factors or negotiate early termination with compensation. If the pre-auction announcement states the buyer is not responsible for eviction, include eviction costs in the auction budget and resolve disputes through possession exclusion lawsuits if necessary. The net profit from foreclosed property deals is the price difference minus the lease burden, taxes, and time costs.

IV. Practical suggestions and legal basis

The first step is to retrieve the seizure order, mortgage registration, and lease contract documents before the auction, and draw up a timeline. The second step is to inspect the property on-site to verify the occupancy, renovation, and usage traces, and verify the tenant's move-in time with the property management and neighbors. The third step is to file an objection application with the enforcement court to remove the malicious lease if discovered before the auction. The fourth step is to claim eviction based on the transaction order and assistance in enforcement notice if there is occupancy after the auction, and, if necessary, to file a lawsuit for exclusion of possession. The main legal basis includes Article 725 of the Civil Code of the People's Republic of China (effective from January 1, 2021) regarding the principle of "sale does not terminate lease", and Article 154 regarding the invalidity of contracts concluded by malicious collusion; the provisions of the "Regulations of the Supreme People's Court on Auction and Sale of Property in Civil Enforcement" (effective from January 1, 2005, amended in 2020) regarding the handling of lease burdens on auctioned property; Article 31 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Handling of Objections and Review Cases in Enforcement" (effective from May 5, 2015) regarding the review of lease and possession; and specific applications shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

Three key points about legal auction leases: 1. Before seizure, you must comply with the genuine lease agreement; after seizure, the fraudulent lease agreement can be revoked. 2. For ultra-long term leases requiring a one-time payment, first suspect and then verify. 3. Review the property before the auction and raise objections after the auction. The cost of eviction will be included in the total price when bidding. For transactions involving legal auction properties, you can consult the following channels:Real estate transactions and construction projectsThe service obtains a comprehensive solution, which involves the integration of the execution of objection procedures.Creditor's rights and debts, and enforcementFor plates, those involved in the determination of the invalidity of lease contracts can refer to the following for referenceContract disputesFor columns involving investigation and evidence collection, you can submit them viaSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: If the lease agreement was signed after the property was seized, can we request the tenant to vacate the premises after the auction?

Yes. The lease signed after the seizure cannot resist the execution of the auction, and the buyer can apply to the court to remove the lease burden and force the tenant to vacate; the lessee's losses can only be claimed from the lessor.

Q2: Is a contract with a 20-year lease term and a one-time payment of the rent credible?

Highly suspicious. An extremely long lease term combined with full prepayment is a typical form of a malicious lease agreement. It is necessary to verify the signing time, the flow of funds, and the relationship between the two parties. If it cannot be proven that the agreement was actually fulfilled, it is possible to claim that the auction should not be opposed.

Q3: The real lease agreement requires me to pay for it for over a decade without any benefits. How should I handle this?

There are three approaches: including the rental income in the bidding price, buying the property at a low price and holding it for renting; negotiating with the lessee to terminate the lease early and calculating the compensation based on the remaining lease term; if there are defects in the lease agreement (low price, related-party transactions, or failure to actually occupy the property), pursuing an objection removal procedure.

Q4: The announcement says "we are not responsible for the eviction", does that mean all the risks are on my side?

The announcement's disclaimer does not change the handling of statutory liabilities: you can still apply for eviction if the grounds for removal are established; however, you will have to bear the procedural costs and time yourself. Therefore, it is more economical to conduct due diligence before the auction than to seek remedies after the auction.

Q5: What should I do if the lessee raises an objection to the execution and attempts to block the auction?

Verify whether the time of their lease and possession precedes the seizure, and whether the rent has been paid reasonably; objections that do not meet the conditions of opposition will be rejected, and the buyer may request to continue the auction process and handle the delivery in a timely manner.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law 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 Henglue Law Firm

Disclaimer: This article is compiled based on current 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 case of disputes, please consult a practicing lawyer in a timely manner.