CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian, Qian Gu and Liangqian Ying, JunHe
the outstanding amounts remain unpaid for a reasonable period after receipt of notice from the landlord; • insolvency of the tenant; • unauthorised suspension or close of business operations; and/or • damage to the main structure or unauthor - ised fitting-out or improvement of the leased premises by the tenant. The PRC laws also give the landlord the right to terminate the lease should the tenant sublease the leased premises without the landlord’s con - sent. 6.20 Registration Requirements A lease agreement shall, within 30 days of its execution, be filed with the competent real estate authority of the city where the real estate is located, otherwise the parties to the lease will be ordered to comply. Should the parties fail to comply within the prescribed time period, the parties shall be subject to a fine of CNY1,000 (in the case of an individual) or CNY1,000 to CNY10,000 (in the case of a legal entity). The lease of real estate is not usually reflected in the Land Record. 6.21 Forced Eviction If the lease is terminated as a result of the ten - ant’s default, the tenant must reinstate and return the leased premises in a timely manner. Should the tenant fail to do so, after the lease has been duly terminated, the landlord may cut off the water or electricity supply to force the eviction of the tenant. The landlord may file a lawsuit to the court with competent jurisdiction for its confirmation that the lease is duly terminated. If the tenant still occupies the leased premises after the court
has found that the lease has been terminated, the landlord may apply for an enforced evic - tion based on a valid judgment. In practice, the period required for a court to make a judgment and complete the enforcement procedure varies in different localities but is usually longer than a year. 6.22 Termination by a Third Party A third party who is not a party to the lease can - not generally terminate the lease because it is not a party to the lease. However, under certain circumstances, third parties may make it impos - sible for the lease to be performed or fulfilled, resulting in early termination of the lease. 6.23 Remedies/Damages for Breach In addition to the collection from the tenant of outstanding rent and tenant eviction, the par - ties may agree, in the lease, upon the amount of liquidated damages in the event of a tenant breach and termination of a lease. However, if the amount of the liquidated damages agreed on by the parties exceeds 130% of the losses sustained, the party concerned may apply to the court or arbitration tribunal for an appropriate reduction in liquidated damages. Remaining rent is not generally supported unless it falls within the cap of 130% of the total losses incurred by the landlord, same as the security deposits, whether in the form of cash or bank guarantee, held by the landlord. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common pricing structures for con - struction include: • fixed quota pricing ( 工程定额计价 );
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