Illegal Construction Compensation In The Case Of Invalid Land Leasing Contract

With the background of the booming of China’s real estate market and steady rising value of land and housing, the land use rights users hope in land use process to obtain the maximum profit. Land users also hope to obtain the maximum benefit. This article listed in the case it is in this context of birth, the land use rights users rent land and hope to gain additional benefits(i.e., land for construction has the value), while the same land lessee also hope to less use of land for construction costs to gain extra income. However, this makes the lessee to prefer illegal to build houses, illegal buildings and compensation will become one of the major issues, not only to the construction of city renewal process to bring negative effect, and triggered a series of social conflict events. In judicial practice, the author encountered such a difficult problem, the courts in dealing with invalid lease contract does not distinguish wether the buildings on the ground is legal or illegal. According to its present value to estimate, the compensation calculation of legal buildings and illegal buildings is no difference at all. The article from the invalid contract damages and the property right of unjust enrichment claim two layer in the case the problem undertakes an analysis, to find an effective solution to solve the problem of illegal construction’s compensation to balance between lessors and lessees of interests.