Second-hand house owner wants to evict tenant; court does not support it

This article is reprinted from: Xinjiang Legal Daily

□ Shiliu Yun / Xinjiang Legal Daily Reporter Gu Xueli Correspondent Yi Xin

Buying a house is usually a happy event, but Urumqi resident Wang Song is a bit worried: he just purchased a second-hand home, and just as he was celebrating, he learned he still has to fulfill the original owner Li Si’s lease agreement with tenant Zhang Shan. Recently, the Shaya District People’s Court of Urumqi concluded a housing lease dispute case, illustrating the principle that “sale does not break the lease.”

In March 2019, Li Si leased a house he owned to Zhang Shan, with the lease lasting until May 31, 2027. The contract specifically stipulated that if future policies allowed the house to be converted into a commercial property, both parties would negotiate new rent, and Zhang Shan had the right to sublease the property.

In July 2024, Li Si planned to sell the house, and Zhang Shan explicitly waived his right of first refusal. Subsequently, Li Si sold the house to Wang Song and completed the transfer. During the sale, Wang Song knew the house was leased to Zhang Shan but did not visit the property in person. A few days later, Wang Song suddenly told Zhang Shan he wanted to terminate the lease, claiming that when he visited the property, he found Zhang Shan had illegally converted the house for commercial use, violating the original lease agreement. Zhang Shan opposed this. On October 23, 2025, Wang Song filed a lawsuit against Zhang Shan in the Sha District Court.

The court found that Zhang Shan had paid rent on time and never owed any payments. More importantly, upon careful review of the lease contract, the judge found that the contract did not list “unauthorized change of the house’s use” as a condition for termination, and the original owner Li Si did not prohibit changing the house’s use at the time of signing.

“Did you, as the new buyer, review this lease agreement before purchasing? Did you verify the actual use of the house on-site?” faced with the judge’s questions, Wang Song could not provide evidence proving the specific time Zhang Shan changed the house’s use, nor could he prove that this change occurred after he acquired the property against his will.

Ultimately, the court dismissed Wang Song’s lawsuit. This means Wang Song must continue to honor the original lease until it expires.

(Note: All parties mentioned are pseudonyms.)

Judgment: Buying a “rented house” means taking over the existing lease

“This case exemplifies the principle that ‘sale does not break the lease.’” said the judge handling the case. According to Article 725 of the Civil Code of the People’s Republic of China, if the leased property changes ownership during the lease term, it does not affect the validity of the lease contract.

This means that when Wang Song bought the house from Li Si, he automatically replaced Li Si as the “lessor,” and the rights and obligations of the lease contract are binding on him. Whether Zhang Shan breached the contract depends on the specific terms of the lease. When Li Si and Zhang Shan signed the lease, there was no restriction on changing the house’s use, and Wang Song could not prove that Zhang Shan committed a fundamental breach, so he cannot arbitrarily terminate the contract.

Under what circumstances can a contract be terminated? The judge explained that according to Article 563 of the Civil Code, the parties may terminate the contract in the following cases: (1) due to force majeure making it impossible to achieve the contract’s purpose; (2) before the performance deadline, one party explicitly or through actions indicates unwillingness to perform the main obligation; (3) one party delays performance of the main obligation and, after a reminder, still fails to perform within a reasonable period; (4) one party’s delay or other breach makes the contract’s purpose unachievable; (5) other circumstances prescribed by law.

Reminders for homebuyers: three steps you must not skip

Step 1: Carefully review the contract

Before signing the purchase agreement, always request the original lease contract from the seller, and carefully read key clauses such as lease term, rent, use, and termination conditions. If any clauses seem unreasonable, negotiate modifications before buying.

Step 2: Verify on-site

Be sure to visit the property in person to see who is living there and how they are using the space. This helps confirm the lease is genuine and allows you to verify the actual use of the property, avoiding false leases or future disputes.

Step 3: Conduct comprehensive checks

Use the real estate registration department to verify whether the lease has been registered. Fully assess how the existing lease affects the property’s value and future use before making a purchase decision.