It has become common practice in China for commercial and industrial premises to be leased before being certified for occupation. This usually happens because the legal process for certifying the completion of a building cannot keep up with the high demand for new space. The result, however, is that premises are often fitted-out by tenants only to discover later that they cannot move in because the building has not been certified for occupation. Who then is responsible for the tenant’s losses?

Such problems with pre-leasing have become so prevalent that China’s Supreme Court has specifically addressed it in its Judicial Interpretation On Several Issues on Application of Law In Trials of Disputes Arising From Lease Contracts , which came into effect in September 2009 Using this type of reference feels a bit too legalistic for an article. Unfortunately, the Interpretation adds little clarity to the general law and does little to remedy the tenant’s vulnerability when entering into pre-leases with unscrupulous or careless landlords. In the absence of specific legal protection there are 5 simple rules that prospective tenants should abide by before signing a lease for uncompleted premises.

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