Shanghai "Buy and Selling Don't Break Leasing" Dispute Mediation: Buyer sues seller for concealing long-term lease
Recently, a dispute in Shanghai caused by concealing a long-term lease in a real estate transaction has attracted widespread attention. The buyer sued the seller in court because the seller did not truthfully inform the house that there was a long-term lease contract, which led to the inability to move in normally. This case involves the application of the principle of "buying and selling without breaking leasing" in the Civil Code, and has become a hot topic in the legal circle and the real estate market recently.
1. Case background
In May 2023, Mr. Zhang, a Shanghai citizen, purchased a second-hand house in Xuhui District for 6.2 million yuan. After the transaction was completed, Mr. Zhang found that there were still tenants living in the house and the lease was 8 years left. Seller Ms. Wang never mentioned this during the transaction. According to Article 725 of the Civil Code, "If the ownership of the leased property changes within the tenant's possession period according to the lease contract, it will not affect the validity of the lease contract." That is, the principle of "buying and selling does not break the lease".
| project | Details |
|---|---|
| Where the case occurred | Xuhui District, Shanghai |
| Transaction amount | 6.2 million yuan |
| Remaining lease period | 8 years |
| Prosecution time | June 2023 |
| Controversy Focus | Did the seller deliberately conceal a long-term lease |
2. Views of all parties
1.Buyer's claim:The seller deliberately concealed the fact that the house had a long-term lease during the transaction, which is a fraudulent act and requires the termination of the contract or compensation for losses.
2.The seller argued:The lease contract has been registered with the property and the buyer has failed to fulfill his reasonable review obligations and shall bear part of his responsibility.
3.Legal Expert:According to the relevant provisions of the Civil Code, if the seller does deliberately conceal important facts, it may constitute fraud; but at the same time, the buyer also has the obligation to review it carefully.
| Relevant legal provisions | Content Summary |
|---|---|
| Article 148 of the Civil Code | If one party uses fraudulent means to make the other party commit a civil legal act against its true intention, the party being defrauded has the right to request the people's court or arbitration institution to revoke it. |
| Article 725 of the Civil Code | If the ownership of the leased property changes during the lease period, it will not affect the validity of the lease contract. |
| Article 54 of the Urban Real Estate Administration Law | For house rental, the lessor and the lessee shall sign a written lease contract and register with the real estate management department. |
3. Analysis of similar case data
In recent years, with the active real estate market, disputes on "buying and selling without breaking lease" have shown an upward trend. The following are statistics on similar cases accepted by some courts in Shanghai in the past three years:
| years | Number of cases | Mediation success rate | Average amount of compensation |
|---|---|---|---|
| 2021 | 87 pieces | 65% | 285,000 yuan |
| 2022 | 112 pieces | 58% | 321,000 yuan |
| First half of 2023 | 73 pieces | 62% | 357,000 yuan |
4. Risk prevention suggestions
1.Buyer's Notes:
• Be sure to check the current status of the house before the transaction
• Query property registration and leasing registration information
• Clearly stipulate the status of the house delivery in the contract
• Seller may be required to issue a no-lease statement
2.Seller's Notes:
• Disclose the status of the house rental truthfully
• Negotiate with the tenant in advance to terminate the contract
• Save relevant communication records
• Clearly agree on the lease situation in the contract
5. Latest progress in the case
According to the Xuhui District People's Court, the case is currently in the mediation stage. The presiding judge said that a fair ruling will be made in accordance with the relevant provisions of the Civil Code, taking into account factors such as the degree of fault and actual losses of both parties. Industry experts predict that such cases are usually closed in the form of economic compensation, and it is difficult to completely terminate the contract.
This case once again reminds all parties to the real estate transaction: honest performance is the basic principle, and full information disclosure is the key to avoiding disputes. Whether it is a buyer or a seller, they should improve legal awareness, improve transaction processes, and prevent similar risks.
With the popularization of the principle of "buying and selling does not break the lease", it is expected that such disputes will show a trend of "increasing quantity but increasing mediation success rate" in the future. Legal people suggest that relevant departments may consider establishing a more complete housing rental information disclosure mechanism to reduce disputes from the source.
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