The Decision of Shenzhen Municipal People¡¯s Government on Revising 34 Regulations including the Rules of Shenzhen Special Economic Zone on Employment Service

No. 135
        The Decision of Shenzhen Municipal People¡¯s Government on Revising 34 Regulations including the Rules of Shenzhen Special Economic Zone on Employment Service has been adopted through deliberation, is hereby promulgated and shall enter into effect as of the date of promulgation.
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Mayor: Li Hongzhong
August 26, 2004
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        In order to implement the Administrative Licensing Law of the People¡¯s Republic of China, it is decided at the 125th Executive Committee of Shenzhen Municipal People¡¯s Government to make the following revisions to 34 regulations including the Rules of Shenzhen Special Economic Zone on Employment Service:
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        23. The following revisions shall be made to the Rules for Implementing the Regulations of Shenzhen Special Economic Zone on House Leasing:
        1. Article 5, 6, 7, 8, 9, 28, and 29 are deleted; and
        2. the term ¡°examination and approval¡± mentioned in Paragraph 3 of Article 8 is deleted.
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Rules for Implementing the Regulations of Shenzhen Special Economic Zone on House Leasing

(Adopted at the 56th Executive Committee of Shenzhen Municipal People¡¯s Government on June 25, 1993, promulgated by Decree No.11 of Shenzhen Municipal People¡¯s Government on August11, 1993)
        Article 1 In order to implement the Regulations of Shenzhen Special Economic Zone on house leasing (hereinafter referred to as ¡°the Regulations¡±), these rules are formulated in accordance with the provisions of Article 67 of the Regulations.
       Article 2 For the purpose of the Regulations, ¡°houses for other uses¡± mentioned in Article 2 of the Regulations refers to temporary and simple houses which are approved to be set up by relevant competent department and indoor parking lots in Shenzhen Special Economic Zone (hereinafter referred to as ¡°the special zone¡±).
        Article 3 A district competent department of house leasing (hereinafter referred to as ¡° district competent department¡±) may establish detached offices to carry out the administration to house leasing in its name according to its working demands.
        Article 4 For the purpose of the Regulations, ¡°other valid document testifying a party¡¯s property right¡± mentioned in Item 2, Paragraph 1 of Article 7 of the Regulations refers to:
        1. a red-line drawing or construction license which can prove a party¡¯s property right, if he has proper reason for not registering his real estate ownership; or
        2. a contract of house purchase with a certificate testifying that the money has been paid off, or an approval document issued by relevant competent department for establishing a temporary or easy house.
        Article 5 Every house owner and right holder shall fill in an application for house leasing with truthful information according to the rules of license-issuing authority and submit relevant documents when applying for a license of house leasing (hereinafter referred to as ¡°the license¡±).
        Article 6 If an overseas house owner entrusts a domestic custodian to apply for the license, his issued authorization letter shall be notarized and authenticated according to laws.
        Every certificate letter issued by an overseas house co-owner agreeing to lease a domestic common house shall be notarized and authenticated according to laws.
        Article 7 When a district competent department or its detached office receives the documents submitted by a party applying for the license within its jurisdiction, it shall issue a receipt to the party in time, indicate the receiving date and stamp to the receipt the name of the working person who receives the documents. If an application is not under its jurisdiction, a district competent department or its detached office shall inform the party of the authority which has jurisdiction.
        Article 8 Working persons shall examine parties¡¯ applications, and inspect the houses to be rented out. If an application is examined as consistent with the Regulations, the license shall be granted to the applicant within 15 days upon receiving his application. If an application is examined as inconsistent with the Regulations, a written reply shall be made and reasons shall be explained to the applicant within 15 days upon receiving the application.
        Article 9 The license shall be examined annually. Every house lessor shall submit his license for examination according to the rules of license-issuing authority.
        Article 10 Every lessee shall fill in a registration form for lessees with truthful information according to the regulations, and submit to the registration authority copies of the effective certificates which testify his identity and legal qualifications as stipulated in Article 38 of the Regulations. If necessary, a working person may require a party to produce the original copy of a certificate mentioned above.
        When an agent registers a house leasing, he shall provide his authorization letter. If the agent¡¯s client is an overseas person, the authorization letter shall be notarized and authenticated according to laws.
        Registration authorities shall keep in archives for future enquiry the contracts of house leasing (hereinafter referred to as ¡°the lease contracts¡±) which are examined and approved to be registered and relevant annexes.
        Article 11 In case of discrepancy, the original version in Chinese of a lease contract shall prevail.
        Article 12 The municipal competent authority shall publicize guiding rent once half a year, and may make the publication more frequently according to the actual needs of changing market. The guiding rent shall be publicized by the municipal competent authority in Shenzhen Special Zone Daily, Shenzhen Economic Daily and Chinese and Foreign Real Estate Guide.
        Article 13 Every lessee shall have the independent rights of occupying and using his leased house during the house tenancy term according to the agreement reached in the contract. No lessor may enter into a house having rented out to a lessee without his consent, except for the urgent needs to safeguard the lessee¡¯s life or property or to protect the house, or except under a special circumstance stipulated by laws or regulations.
        Article 14 If a lessee has proper reason to exchange his leased house with another person with the lessor¡¯s consent, the two parties shall alter the original lease contract and register the alteration.
        Article 15 If a lessee dies before the expiration of lease contract, the other lawful cohabitants who satisfy leasing requirements shall have the right to require the contract to be continued.
        If a lessee transfers his property right during the lease term, the lessor shall continue performing the lease contract upon the request of transferee. If a lessee wants to cancel a lease contract, he shall get the lessor¡¯s consent, and shall compensate the lessor for his lost caused by the canceling.
        Article 16 Every lessee shall pay rent according to the agreement reached in contract and shall pay lease management fees according to the Regulations.
        Rent shall be paid in money. If both parties of lease agree, rent may be paid in kind.
        Article 17 In the event that a lessee can not use his leased house entirely or can not use part of it due to the lessor¡¯s fault, his liability of paying rent may be exempted entirely or partially correspondingly.
        Article 18 Lessors shall provide invoices to lessees when collecting rents. A lessee may refuse to pay the rent if the lessor refuses to produce an invoice.
        Article 19 The using fees of affiliated facilities, indoor equipments and furniture of a leased house shall be included in the rent. Unless the lease contract has special agreements or the lessee consents, a lessor may not additionally collect fees or deposits for the affiliated facilities, equipments or furniture mentioned above.
        Article 20 In the event that a leased house or its equipment, facility or furniture is damaged because of the lessee¡¯s deliberate intention or negligence, he shall be liable for reparation or compensation to the damage excluding normal losses. Every lessee is obliged to prevent his co-habitant or guest from damaging the leased house or its equipment, facility or furniture, and shall be responsible for reparation or compensation if he fails to perform the obligation.
        Article 21 In the event that a lessor delays in handing over the leased house, the lessee may require extending the term of lease contract. The prolonged term shall not exceed the period of lessor¡¯s delay.
        In the period that a lessor rebuilds, expands or decorates a leased house with the consent of lessee, the term of lease contract does not require to be extended if the lessor provides another house for the lessee to live or use. If a lessor can not provide another house for the lessee, he may require deducting the rebuilding, expanding or decorating period from the lease term.
        No lessor may raise the original standards of rent without the lessee¡¯s consent after rebuilding, expanding or decorating the leased house.
        Article 22 The guarantee money paid to a lessor by a lessee according to a lease contract shall be returned to him after he performs the contract, or be converted into the rent which shall be paid by him in the last lease term.
        Article 23 Unless a lease contract has other agreements, a lessor shall enjoy the incomes generated from using the leased house¡¯s external wall or roof to set up signboards or advertisements.
        Article 24 If a lessor consents a lessee to sub-lease the leased house, he shall produce a written certificate. When a sub-lessor and sub-lessee go to a registration authority for registration, they shall bring forth the written certificate to the effect that the lesser consents to the sublease.
        Article 25 In the event that the expiration date of sublease coincides with that of the original lease term, the sub-lessee shall return the house to the sub-lessor at 3 days before the expiration date.
        Article 26 Every lessee shall return the leased house to the lessor before the expiration date of lease term according to the conditions agreed in the contract.
        Article 27 If a lessor needs to recover a leased house after the lease term expires, he shall notice the lessee to move out of the house in writing. If a lessor does not notice the lessee to move out and collects rent when the lease term expires, the lease contract shall be considered to be renewed with the lessor¡¯s acquiescence.
        The rent in the renewed lease term shall be calculated according to the money paid by the lessee when the original lease term expires.
        Article 28 The penalty of fining a party or confiscating a party¡¯s illegal gains stipulated in the Regulations shall be decided by a district competent department or its detached office. The penalty of revoking a party¡¯s license shall be decided by a district competent department.
        Article 29 A party whose license has been revoked may not apply for a new one within one year upon the revocation. In the event that a lease contract is terminated because of a revocation of license, the lessor shall be responsible for compensating the lessee¡¯s loss caused by the termination.
        A party may apply for a new license according to the Regulations one year after his original license has been revoked.
        Article 30 These rules shall go into effect as of the date of promulgation.