CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian, Qian Gu and Liangqian Ying, JunHe LLP
6.18 Right to Assign a Leasehold Interest
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
A tenant may sublease part or all of the leased premises to a third party with the prior consent of the landlord. The sublease term should not be longer than the residual lease term of the original lease agreement. The tenant is liable for any damages caused by such third parties to the leased premises. 6.19 Right to Terminate a Lease The following circumstances are often seen in a lease as causes for termination by the tenant: • damage to the leased premises preventing the tenant from using the leased premises; • insolvency of the landlord; and/or • frequent interrupted supply of water, electric - ity, air conditioning or elevators. The PRC laws also give the tenant the right to terminate the lease in the event of: • the leased premises endangering the safety or health of the tenant; • the occurrence of any of the following circum - stances for reasons not attributable to the tenant, thus rendering the tenant unable to use the leased premises: (a) the leased premises being attached by judicial or administrative organs; (b) title claim to the leased premises; or (c) violation of the mandatory provisions of laws and administrative regulations in respect of the requirements on the use of the leased premises. The following circumstances are often seen in a lease as causes for termination by the landlord: • failure by the tenant to pay the rent, manage - ment fee, deposit or other amounts due, and
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