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Attorney Lyu Warns of Traps in Quanzhou’s “Small-Property-Right” Housing

Lyu, Attorney-at-Law (PRC)

Quanzhou is a relevant commercial location for international buyers sourcing from China. Quanzhou has a large export-oriented manufacturing base covering footwear, textiles, consumer goods and industrial products. A dispute involving a supplier in this market should be considered in light of both the contractual relationship and the practical characteristics of the local supply chain.

Recently, I handled a case involving a lease dispute over“small-property-right housing”. The tenant wishes to retain me for an appeal in the second trial after losing the initial trial. The tenant had rented several storefronts from the landlord. The lease agreement specifically stipulated the compensation amount payable to the tenant if the landlord terminated the contract early. Later, a dispute arose, and the tenant sued the landlord. The court ultimately ruled the contract invalid because the property was classified as a small-property-right house. Such properties lack legal property certificates and are typically illegal structures. Under Chinese law, these small-property-right houses cannot be leased. Even if a lease agreement is signed, it is invalid. The consequence of this invalidity is that any breach-of-contract clauses within the agreement are also null and void. However, the tenant still had to pay occupancy fees for the actual period of using the property, based on the rent stipulated in the contract. This outcome was highly disadvantageous to the plaintiff. In fact, he made a critical mistake: when signing the contract, he failed to require the landlord to prove the property had a valid legal title deed and did not hire a lawyer to investigate the property’s ownership status. I am Attorney Lyu. If you have any legal questions, feel free to contact me. If you like my videos, please give them a thumbs up, subscribe, and save them.

Phone Number(English OK): (86)-516-1879-5428-064

E-mail: lvqiang#lyuandassociates.com/(please replace # with ＠)

Website: https://lyuandassociates.com/quanzhou

Linkedin: https://www.linkedin.com/in/qiang-lyu-ab2b79261/

Local Supply Chain Risks in Quanzhou

International buyers dealing with Quanzhou companies may be sourcing products or services connected with footwear, textiles, consumer goods, machinery and export manufacturing. Typical issues may include quality disputes, production delays, OEM disputes, non-conforming goods and payment disputes. For footwear, textile, consumer-goods and machinery transactions, buyers should pay particular attention to exact product specifications, approved samples, production tolerances, inspection arrangements and the identity of the contracting entity.

Quanzhou is located in Fujian and is supported by a dense network of export-oriented manufacturers and trading companies. For cross-border transactions, this background can be useful when assessing supplier verification, contract enforcement and dispute-resolution options.

Resolving a Supplier Dispute in Quanzhou

Where a commercial dispute has developed, an overseas buyer should avoid relying solely on informal communications. Reviewing the contract, identifying the correct legal entity, preserving documentary evidence and assessing the available dispute-resolution mechanism are usually important before deciding how to proceed.

The appropriate legal strategy depends on the specific transaction, the supplier’s conduct, the evidence available and the applicable legal framework.

Legal Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws and legal procedures may vary depending on the specific facts and applicable jurisdiction. No lawyer-client relationship is created by reading this article or contacting us through this website. For advice regarding a specific matter, please consult a qualified lawyer after a formal engagement has been established.