India english law adaptation

book/15-Renting-And-Buying-Housing.md

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+# 15. 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.
+### 1. The amount of the deposit, its refund timeline, and permissible deduction scenarios must be specified in the contract
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+- Cost: No monetary cost. It only requires an extra ten minutes when signing the contract. The challenge lies in bringing this up in front of the landlord.
+- In plain terms: 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.
+- Benefit: Regulatory statutes make this clear: “Landlords collecting a deposit must specify the deposit amount, refund timing, and permissible deduction scenarios in the housing lease agreement. Apart from these agreed terms, landlords have no right to deduct funds without valid justification.” In short, three key points must appear in the contract: how much the deposit is, when it’s returned, and under what conditions it can be deducted. Reasons not listed in the contract cannot be used to justify any deductions.
+- Evidence grade: A
+- Notes: On the day of moving out, take photos and videos together with the landlord. Capture readings from water, electricity, and gas meters, as well as images of walls and floors. If your deposit is deducted without cause, first file a complaint with the housing regulatory authority. For smaller amounts, consider pursuing a small claims lawsuit — see Section 8 for details.
+- Sources:国务院 (2025). 住房租赁条例（国令第 812 号，2025 年 9 月 15 日施行）（第十条）. <https://www.gov.cn/zhengce/zhengceku/202507/content_7032956.htm>
+
+### 2. 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
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+- Cost: No cost at all. Just make a phone call to the police and they’ll be there immediately.
+- In plain terms: 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.
+- Benefit: Administrative regulations make it clear: “Landlords may not use violence, threats, or any other illegal means to compel tenants to terminate a housing lease or vacate the premises.” Eviction means being forced to move out. In such situations, call the police and preserve all evidence — do not take matters into your own hands.
+- Evidence grade: A
+- Notes: Calling the police ensures you obtain an official report. This report becomes crucial evidence if you later file a claim for damages. Also be sure to notify your local housing authority.
+- Sources:国务院 (2025). 住房租赁条例（国令第 812 号，2025 年 9 月 15 日施行）（第十二条）. <https://www.gov.cn/zhengce/zhengceku/202507/content_7032956.htm>
+
+### 3. Real estate agents must not collect or remit rent and security deposits; payments go straight to landlords
+<!-- 成本标签: 钱=0 时间=少 毅力=些 收益=大 口径=金钱 -->
+- Cost: No cost at all. It takes just a few minutes to verify the recipient before paying. The hard part is resisting pressure from agents who try to get you to send the money to them instead.
+- In plain terms: 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.
+- Benefit: Administrative rules explicitly forbid real estate agencies from collecting or remitting rent and security deposits on behalf of landlords. This means agents have no legal authority to handle such payments. Every time money moves through an agent’s hands, the risk of them running off with the money rises significantly.
+- Evidence grade: A
+- Notes: Double-check that the recipient’s name matches the name on the property title before making any payment. If it does not, ask for a written authorization first. Agents are only allowed to charge a commission fee for their matchmaking services.
+- Sources:国务院 (2025). 住房租赁条例（国令第 812 号，2025 年 9 月 15 日施行）（第二十五条）. <https://www.gov.cn/zhengce/zhengceku/202507/content_7032956.htm>
+
+### 4. Check a long-term rental’s escrow account before paying a full year’s rent upfront
+<!-- 成本标签: 钱=0 时间=中 毅力=些 收益=大 口径=金钱 -->
+- Cost: No cost at all. It takes just a few minutes to verify.
+- In plain terms: 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.
+- Benefit: Regulations require any housing rental business that sublets units to set up a dedicated escrow account for rental funds and make it visible to the public. Subletting means a company leases entire properties from landlords and then rents them out to individual tenants. The tiny discount from paying a full year’s rent upfront is far outweighed by the risk of losing both your deposit and all prepaid rent if the company shuts down. This risk is even greater if you’ve taken out a rent loan.
+- Evidence grade: A
+- Notes: Carefully check whether any loan products are tied to your lease agreement. If a third-party app lets you pay a full year’s rent upfront to the rental company, and you then repay that amount via monthly installments, you’ll still be responsible for all payments even if the company ceases operations. Avoid signing any such contracts.
+- Sources:国务院 (2025). 住房租赁条例（国令第 812 号，2025 年 9 月 15 日施行）（第十九条）. <https://www.gov.cn/zhengce/zhengceku/202507/content_7032956.htm>
+
+### 5. House sold during lease term – lease remains valid, no need to move
+<!-- 成本标签: 钱=0 时间=少 毅力=否 收益=中 口径=金钱 -->
+- Cost: No cost at all
+- In plain terms: 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.
+- Benefit: The Civil Code includes a principle known as “sale does not break lease,” meaning a property sale has no effect on an existing lease agreement. The actual wording is: “Any change in ownership of leased property during the lease term does not affect the validity of the lease contract.” In other words, even if the house changes hands while you’re renting it, the new owner must abide by the original terms and let you stay until the lease ends.
+- Evidence grade: A
+- Notes: This applies only if you’re already residing there lawfully; the law refers to such occupancy as “legal possession and use.” It’s essential to retain all relevant documentation, including the lease, proof of payments, and records indicating your move-in date.
+- Sources:全国人大 (2020). 民法典（第七百二十五条）. <https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml>
+
+### 6. Checking property rights and mortgages before signing the contract; all payments must be transferred with a purpose note
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+
+- Cost: No cost involved. The check takes about half an hour.
+- In plain terms: 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.
+- Benefit: These two scenarios represent the typical ways people lose all their money: paying rent to a non-owner, or dealing with a property that’s already mortgaged and seized. Keeping a transfer note that reads “Monthly rent for [property address]” provides solid evidence if a dispute arises later.
+- Evidence grade: C
+- Notes: Property rights information can be obtained from the local land registry office. At the time of signing, the actual owner must be present; if not, a written authorization is required. If you’re renting from a sub-landlord, written consent from the original owner is mandatory.
+- Sources:作者经验，无直接文献；证据留存与转账备注同理见第 8 节关于彩礼和借条的两条
+
+### 7. 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
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+- Cost: No cost involved. The challenge is ensuring the payment goes into the designated account; this may require some discussion with the agent.
+- In plain terms: 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.
+- Benefit: Regulations are explicit: any real estate agency entrusted to collect or disburse transaction funds must use a dedicated client settlement account at a bank. This ensures the payment is held in a regulated account, not the agency’s general account or any individual agent’s personal account.
+- Evidence grade: A
+- Notes: Given the substantial amount involved, never send payment via WeChat to an agent. Two common scenarios involving extra charges also apply: first, when two agencies jointly handle a sale, only one commission fee is allowed; second, services like loan processing or title transfer are separate and must be contracted individually with clear fee disclosures. All payments should be transferred via bank transfer with a purpose note, as outlined in item 6 (verifying property titles and mortgage status prior to signing).
+- Sources:住房城乡建设部、国家发展改革委、人力资源社会保障部 (2011). 房地产经纪管理办法（令第 8 号，2016 年第 29 号令修改）第二十四条：「房地产交易当事人约定由房地产经纪机构代收代付交易资金的，应当通过房地产经纪机构在银行开设的客户交易结算资金专用存款账户划转交易资金。」第十八条「房地产经纪服务实行明码标价制度……在经营场所醒目位置标明房地产经纪服务项目、服务内容、收费标准」；第十九条「两家或者两家以上房地产经纪机构合作开展同一宗房地产经纪业务的，只能按照一宗业务收取佣金，不得向委托人增加收费」；第十七条代办贷款、代办房地产登记等其他服务「应当向委托人说明服务内容、收费标准等情况，经委托人同意后，另行签订合同」. <http://www.gov.cn/gongbao/content/2011/content_1918920.htm>
+
+### 8. 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.
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+
+- Cost: There’s no direct cost. The trade‑off is that with the same budget you’ll either have to live farther away or in a smaller space.
+
+- In plain terms: 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.
+
+- Benefit: The rules make it clear that the minimum rental unit is the original room — meaning you can’t split it into multiple units for separate rentals. The minimum floor area per occupant must meet local legal standards, and kitchens, bathrooms, balconies, and basements must not be rented out for habitation. Landlords also can’t arbitrarily increase rent while a lease is in effect.
+
+- Evidence grade: A
+
+- Notes: When an illegal subdivision is discovered, it’s the tenant who must move, often losing their security deposit and any rent already paid. Safety is also a concern: makeshift walls can block escape routes, and many people sharing one apartment often rely on a single electrical circuit. When viewing a place, check three things: whether walls were added later, if there’s a window in the room, and whether the electric meter can handle the expected number of occupants.
+- Sources:住房和城乡建设部 (2010). 商品房屋租赁管理办法（令第 6 号）第八条：「出租住房的，应当以原设计的房间为最小出租单位，人均租住建筑面积不得低于当地人民政府规定的最低标准。厨房、卫生间、阳台和地下储藏室不得出租供人员居住。」第九条：「出租人应当按照合同约定履行房屋的维修义务并确保房屋和室内设施安全……房屋租赁合同期内，出租人不得单方面随意提高租金水平。」<http://www.gov.cn/gongbao/content/2011/content_1845070.htm>