Recently, over 70 tenants at Fuxing Apartment, No. 18, Dapianbei First Alley, Tangxia, Tianhe District, Guangzhou, received notice from the original landlord, Ms. Chen, to vacate the premises by December 31. This decision came after the property was auctioned and acquired by a new landlord who plans to renovate the building and rent it out at higher prices, no longer accepting the current tenants.

Details of the Dispute

  1. Unexpired Rental Contracts:
    Among the affected tenants, around 10 have valid rental agreements that have not yet expired. Others had their contracts expire but continued renting on a monthly basis.
  2. Return of Contracts and Compensation Waivers:
    Tenants reported that the landlord requested them to return their rental agreements and possibly sign a waiver ensuring they would not file claims or lawsuits against the landlord in the future.
  3. Forced Relocation Without Compensation:
    Some tenants, who had moved in less than two months ago, were asked to leave early without receiving any compensation or breach-of-contract payment.

Can the Landlord Evict the Tenant Before the Lease Expires?

  1. Can the landlord evict the tenant before the lease term expires?

When a lease agreement has not yet expired, the landlord does not have the right to forcibly remove the tenant from the rented property. As the tenant, you have the right to negotiate with the landlord to terminate the lease agreement early and request a refund of the remaining rent. Additionally, you can seek compensation from the landlord for breaching the contract. If negotiations fail, you can consider seeking legal assistance and protecting your rights through litigation or other legal means.

According to Article 577 of the Civil Code of the People’s Republic of China,
“If one party fails to perform its contractual obligations or the performance does not conform to the agreement, it shall bear liability for breach of contract, such as continuing to perform, taking remedial measures, or compensating for losses.”

  1. How much is the penalty for early termination of a lease?

Under current laws and regulations, the penalty for early termination of a lease should be handled according to the terms agreed upon in the lease contract between both parties.

However, when determining the amount of penalty, it must not exceed 30% of the actual loss. If the agreed penalty exceeds 30%, the excess portion will not be upheld by the court. This means the breaching party will not be obligated to pay compensation for the amount that exceeds this limit.

According to Article 585 of the Civil Code of the People’s Republic of China,
“The parties may agree that one party shall pay a certain amount of liquidated damages in case of breach or agree on the method of calculating the compensation for losses caused by the breach. If the agreed liquidated damages are significantly lower than the losses incurred, the people’s court or arbitration institution may increase it upon request of the parties. If the agreed liquidated damages are excessively higher than the losses, they may be appropriately reduced upon request.”