Returning the premises is the “final match” of every lease: the tenant wants the deposit back in full, the lessor wants the site ready for the next tenant. Disputes erupt around three questions: restore to what standard, who pays, and how much deposit is deducted. The answers lie half in the law, half in the contract — and the contract half usually decides the real outcome.
Statutory handover standard: Article 482, 2015 Civil Code
Article 482 of the 2015 Civil Code (in force as of 20 October 2026) provides: the lessee must return the leased property in the condition received, except for natural wear and tear, or as agreed; if the property’s value has diminished compared with receipt, the lessor may claim damages, excluding natural wear. Three practical takeaways: (1) the tenant need not restore natural wear (worn factory floors, faded paint); (2) damage caused by the tenant’s fault (wall drilling, scorching, subsidence from overloading) must be compensated; (3) any different contractual agreement prevails over this default rule.
“Original condition” is therefore not abstract — it must be defined by the initial handover record with site photos. Without the original record, every debate about “how it looked at handover” becomes an endless argument.
Dismantling and restoration costs: who pays?
The rule: as agreed in the contract. Industrial park land leases typically follow three models: (1) the tenant removes all temporary works, restores vacant land and bears all costs; (2) the tenant leaves certain items (levelling, fencing, internal roads) credited by the lessor; (3) the lessor restores and deducts actual costs from the deposit. If the contract is silent, Article 482 applies: the tenant bears the cost of remedying value diminution beyond natural wear. Note: restoration costs must be actual, reasonable and documented — the lessor cannot invent a restoration price and deduct at will.
When may the deposit be deducted?
The deposit (usually 3–6 months’ rent) secures the return obligation. The lessor may deduct only where: (1) rent or fees remain unpaid; (2) the site’s value diminished beyond natural wear and the tenant did not remedy it; (3) the contract agrees deposit-based penalties. Every deduction must be reconciled against the handover record and actual cost evidence. Dispute practice shows: lessors who deduct without an itemised statement almost always lose in court.
How to draft the handover clause?
To prevent disputes, the handover clause should specify four items: (1) the definition of “handover condition” (with the initial record and photos annexed); (2) the list of items the tenant must remove versus may leave; (3) the return deadline and any dismantling grace period (and whether rent accrues during it); (4) the restoration-cost mechanism (independent quotation, joint acceptance). A 200-word clause at signing is worth more than a two-year lawsuit.
Frequently asked questions
1. How far must tenants restore the premises?
Under Article 482 of the 2015 Civil Code: return it as received, except natural wear and tear, or as agreed in the contract. Contractual agreement prevails.
2. Who bears dismantling and restoration costs?
As agreed in the contract. If silent, the tenant bears the cost of remedying diminution beyond natural wear; costs must be actual, reasonable and documented.
3. How much deposit is deducted for unrestored premises?
Only the actual documented loss (unpaid sums, actual restoration costs, agreed penalties). Deductions without an itemised statement rarely survive a dispute.
4. How should handover standards be drafted in the contract?
Four items: define handover condition (annex initial record and photos); list items to remove versus leave; return deadline and grace period; restoration-cost mechanism (independent quote, joint acceptance).
Key takeaways for investors
- Statutory standard: return as received, less natural wear (Article 482, 2015 Civil Code) — contract terms prevail.
- Define “original condition” with the initial handover record and photos annexed to the contract.
- Restoration costs must be actual, reasonable and documented — no invented prices deducted at will.
- A 200-word handover clause at signing beats a two-year lawsuit.