A highly unusual property dispute has emerged in Chengdu, Sichuan, where a new homeowner, identified as Ms. Zhang, found strangers occupying her recently purchased, vacant apartment, complete with activated utilities and full furnishings. The incident came to light on December 4, 2025, just as Ms. Zhang arrived for her pre-handover inspection, prompting concerns about developer accountability and contract fulfillment in the regional real estate market.
Unexpected Occupants Found in 137-Square-Meter Unit
Ms. Zhang reportedly purchased the 137-square-meter property, a four-room shell unit, for over one million yuan (approximately $140,000 USD) in June. She was scheduled to inspect the finished apartment before finalizing the transfer, but upon arrival, she discovered the unit was clearly inhabited.
Online documentation, including video evidence shared by Ms. Zhang, illustrated the extent of the unauthorized occupation. The footage showed running water and electricity usage, fully furnished rooms, clothing drying on the balcony, and even the installation of a rudimentary squat toilet, according to reports. Ms. Zhang noted that the discovery of a fully made bed in the master bedroom was particularly distressing.
Upon confronting the developer’s sales office regarding the unauthorized residents, Ms. Zhang was allegedly informed that the arrangement was “reasonable.” The developer reportedly requested a few days to clear the property. Ms. Zhang rejected this explanation, asserting that her contract stipulated a vacant property at the time of inspection.
Legal Experts Weigh In on Contractual Obligations
The core issue rests on whether the developer fulfilled its contractual obligation to provide the property in the agreed-upon, vacant condition.
Fu Jian, director of the Henan Zejin Law Firm, commented on the unfolding dispute, clarifying that a developer bears the responsibility of maintaining a property in the contractually stipulated state leading up to the final inspection. He emphasized that finding strangers occupying a newly constructed home constitutes a clear breach of contract.
Ms. Zhang quickly sought remediation, first attempting to negotiate a full refund through her estate agent, a request that reportedly garnered no immediate response. She stated her intention to continue negotiating with the developer but is prepared to pursue legal remedies if negotiations fail.
Recourse Available to the Homeowner
Under China’s Civil Code, Ms. Zhang possesses strong grounds for legal action. Attorney Fu Jian noted that the buyer could file a civil suit in the local court seeking several key outcomes:
- Contract Rescission: Legally voiding the purchase agreement.
- Full Refund: Recovering the original purchase price.
- Compensation: Claiming damages for both interest accrued on the funds spent and financial losses incurred, such as time off work required to resolve the issue.
This incident underscores the vital importance of final property inspections and diligent contractual oversight, even for newly built units. Home buyers are advised to ensure all contractual clauses specifically address the condition and vacancy status of the property prior to finalizing payment and accepting the keys. While the developer promised to vacate the unit, the breach of trust and contract has already complicated the transfer process for the new owner. The outcome of Ms. Zhang’s negotiation or future legal action is expected to set a precedent for developer accountability in the rapidly expanding Sichuan real estate market.
Related Reading: Understanding Developer Breach of Contract in New Construction Sales.