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Typical Lease Terms
Legislation: The law is based on PRC Contract Law of Oct.1st 1999.

Lease Length: At least 3 years

Rent Escalation/ Rent Review: Rent is fixed in three years.

Guarantee and Security Deposit: A deposit of 3 months rent and management fee must be paid when the lease is signed

Rights of Renewal: In the last year of the lease, with 3 to 6 months notice, the landlord may either renew the lease at an adjusted rent or refuse renewal.

Break Options and Terminations: The tenant has the right to break the lease with 3 to 6 months written notice, and loss the deposit.

Tenant and Landlord Obligations: Tenant obligations are internal repair while landlord are main structural repairs and to keep the roof watertight.

Subletting: The tenant is not permitted to sublet the premises without written consent from the landlord.

Legal Environment Concerning Brokerage Law
In China, to be a property consultant, should get a real estate agency certificate
from local city or province Governs.

As Real estate Agency Company, at least should get 5 personal real estate agency certificates.

Occupancy Costs
The following charges are payable by the tenant
Rents: Rents are quoted in RMB per s qm per day and are paid quarterly in advance.

Management fee: Management fees are quoted in RMB per s qm per day and are paid quarterly in advance.

Other Taxes/ Costs: Stamp Tax is based on lease term and net monthly rental. Utilities fee is pay by meter.

Acquisition Costs:
Typical acquisition costs that a company will have to pay when buying or leasing new premises include:

Agents Fees
Leasing: Fees are typically 2 or 3 months net rental. The fees are usually split 50:50 between the tenant and landlord.
Buying: Fees are typically 3-5% of the agreed purchase price. The fees are usually split 50:50 between the tenant and landlord.

Property Transfer Tax: RMB2.5 per sqm

Other Taxes/ Costs: Stamp tax is 0.05% of purchase price. Contract Tax is 3% of purchase price.

General Market Practices
Basis of Measurement:
Gross Area
Fit Out/ Reinstatement/ Dilapidations:

Holidays
There are three times a year in which the speed of transactions are reduced due to holidays. Nationwide, there are 3 holidays that are observed: Chinese new year (late January/ early February); May Day Holiday (May 1); and National Holiday (October 1).  For each of these holidays a full week holiday is scheduled, and often times the weeks prior to and after the holiday week are also affected.