The Study On The Lessee Preemption

The laws in China make it clear that lessees shall enjoy the preemption. It means that whenthe lessor sells the house, the lessee has the priority of purchasing it under the same condition.However, it should be noted that the regulation not only involves the rights and obligations of thelessees and lessors but also affects the interests of the other house part—owner and the third partyof the house deal as well as other relevant personnel. As a result, based on the existing laws inChina, the paper discourses the regulation in four respects and concludes that though it is consistentwith the value orientation of legislation in China, it still needs improvement and polish. It also putsforward an idea to perfect the regulation.Part one gives a brief introduction to the legislative status of the preemption. It introduces thedefinition of the regulation and the legal provisions for it. It is concluded that the subject of theright, the time limit for termination and the way to exercise the right are vague. Besides, there aremany ways for lessors to get round the law. The right remedy for the lessees is not in place.Part two expounds legal analysis of the preemption. Though there are some shortcomings ofthe regulation, it can’t be denied that it has its own significance. It can protect the disadvantagedand contributes to fairness and justice. It helps to improve the use value of the house, achieving themaximum of economic benefit. It also helps to reduce conflicts, make the residence stable andpromote social harmony and stability. According to the analysis of the legal character of thepreemption of lessees, the right is considered to belong to right of formation and creditor’s right.Part three discourses the condition, the time limit and the power of the preemption of lessees.Some special problems that arise when the lessee is exercising the preemption are mentioned, suchas whether it refers to renting the house as a whole, whether it conflicts with mortgage and whetherto exercise it at an auction. Then it comes up with answers to these questions.Part four combines the previous expounding and analysis with the status quo of thepreemption. It puts forwards an idea to perfect the preemption of lessees in four respects, includingthe scope of the right, relief measures, perfecting the system of registering the house lease andestablishing rules to deal with the problem when there is more than one person who can enjoy thepreemption.