Chapter 15 / 8 tips

Renting vs. buying a home✳

Renting can easily cost you extra due to security deposits and realtor fees. Buying a home, on the other hand, brings high expenses in the form of mortgage interest and all those hidden details that sellers know but buyers often overlook.

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01Evidence A

The amount of the deposit, its refund timeline, and permissible deduction scenarios must be specified in the contract

The deposit amount, when it will be returned, and under what circumstances deductions are allowed must all be written into the contract before you sign it. Any deduction reasons not explicitly stated in the contract cannot be used by the landlord to withhold your deposit at the end of the lease.

Cost

No monetary cost. It only requires an extra ten minutes wh…

Benefit

Regulatory statutes make this clear: “Landlords collecting a deposit must specify the deposit amount, refund t…

02Evidence A

When water and electricity are cut off, locks are changed, or you’re threatened to leave — call the police right away: laws forbid using these tactics to force you out

Landlords are strictly prohibited by law from cutting off utilities, changing locks, or threatening tenants to end a lease or force them to move out. If this happens to you, call the police right away. The police report serves as proof if you later seek compensation for any losses. Do not attempt to confront the landlord on your own.

Cost

No cost at all. Just make a phone call to the police and t…

Benefit

Administrative regulations make it clear: “Landlords may not use violence, threats, or any other illegal means…

03Evidence A

Real estate agents must not collect or remit rent and security deposits; payments go straight to landlords

By regulation, real estate agents are prohibited from collecting or remitting rent and security deposits; all payments must go directly to landlords. Any time money passes through an agent’s hands, it creates one extra chance for them to abscond with the funds. If that happens, you lose both your rent payments and your right to stay in the property. Always confirm that the recipient’s name matches the name on the property title before paying.

Cost

No cost at all. It takes just a few minutes to verify the…

Benefit

Administrative rules explicitly forbid real estate agencies from collecting or remitting rent and security dep…

04Evidence A

Check a long-term rental’s escrow account before paying a full year’s rent upfront

The discount you get from paying a full year’s rent upfront is minimal. If the rental company goes out of business, you lose both your security deposit and the rent you’ve prepaid for the remaining months. It gets even worse if you take out a rent loan: even if the company disappears, you’re still obligated to make all monthly loan payments. Always check whether the company has a publicly listed escrow account before signing any lease.

Cost

No cost at all. It takes just a few minutes to verify.

Benefit

Regulations require any housing rental business that sublets units to set up a dedicated escrow account for re…

05Evidence A

House sold during lease term – lease remains valid, no need to move

If a house is sold while you’re still renting it, your lease stays valid. The new owner must honor the original contract and let you live there until it ends. You won’t need to move out or renegotiate any terms. This only applies if you’re already living there legally; be sure to keep proof such as the lease, payment records, and documentation showing when you moved in.

Cost

No cost at all

Benefit

The Civil Code includes a principle known as “sale does not break lease,” meaning a property sale has no effec…

06Evidence C

Checking property rights and mortgages before signing the contract; all payments must be transferred with a purpose note

The two most common ways people end up losing all their money are: first, paying rent to someone who isn’t the property owner; second, discovering that the house was already mortgaged to a bank and later seized. Before signing, verify both the property rights and any existing mortgages at the local land registry office. All payments must be made via bank transfer, with a note stating “Monthly rent for [property address]”. This note serves as direct proof in case of any disputes.

Cost

No cost involved. The check takes about half an hour.

Benefit

These two scenarios represent the typical ways people lose all their money: paying rent to a non-owner, or dea…

07Evidence A

For second-hand home sales where the agent collects the payment, the funds must be deposited into a dedicated transaction account opened by the agency at a bank

The purchase price can range from hundreds of thousands to millions of dollars — this is the largest single transaction amount discussed in this guide. By regulation, when an agent collects payment, it must be transferred to a dedicated account opened by the agency at a bank, not sent via WeChat to the individual agent. Additionally, when two agencies collaborate on one sale, only one commission fee may be charged; services such as loan processing or title transfer require separate contracts and clear fee agreements beforehand.

Cost

No cost involved. The challenge is ensuring the payment go…

Benefit

Regulations are explicit: any real estate agency entrusted to collect or disburse transaction funds must use a…

08Evidence A

Don’t rent a subdivided apartment: the smallest legal rental unit is the original designed room; kitchens, bathrooms, balconies must not be used for living.

By regulation, the smallest permissible rental unit is the room as originally built. Kitchens, bathrooms, balconies, and basement storage areas cannot be used as living quarters. If such an apartment is found to be illegal, you may be forced to move out. Additionally, during the lease term the landlord cannot unilaterally raise the rent.

Cost

There’s no direct cost. The trade‑off is that with the sam…

Benefit

The rules make it clear that the minimum rental unit is the original room — meaning you can’t split it into mu…

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