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China landlord’s US$110,000 demand denied as court dismisses claim that suicide of tenant’s mother decreased property value

  • Lawsuit claims tenant failed to inform landlord that her mentally ill mother would live with her and she did not fulfil obligation to take care of her
  • ‘Ghost house’ is a term used in China to refer to residences in which deaths like murder or suicide have occurred

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“Ghost house” is a term used in China to refer to residences in which deaths like murder or suicide have occurred and homes with such designations usually sell at prices far below market value. Photo: SCMP composite/Shutterstock`
Alice Yanin Shanghai

A story about a landlord in Shanghai who had demanded 800,000 yuan (US$110,000) in compensation long after his former tenant’s mother committed suicide by jumping from the flat’s balcony has been trending on Chinese social media.

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In September, a court rejected the demand, which was based on the argument that the flat had lost substantial value as it had been deemed a “ghost house”, according to a report on Daxiang Video.

The case dates back to 2016, when a woman, surnamed Lin, began renting the flat. In March 2019, her mother, who had a mental illness, moved in with her. A month later, the mother plunged to her death. Later that month, the daughter gave up the lease.

Two years later, the landlord, surnamed Zhang, sold the flat to a man, surnamed Li, for 9 million yuan (US$1.25 million).

But a month after the deal, the new owner realised he had purchased a “ghost house”, a term used in China to refer to residences in which deaths like murder or suicide have occurred.

Residential homes in Guangzhou in southern China are some of the most expensive in the country. Photo: Shutterstock
Residential homes in Guangzhou in southern China are some of the most expensive in the country. Photo: Shutterstock

After Li accused Zhang of concealing the information from him, the two men agreed that the house price would be reduced by 800,000 yuan.

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