After moving in with her baby following childbirth, the tenant discovered that the property had formaldehyde levels exceeding the standard after paying the deposit. Can the tenant demand to terminate the lease? And can the deposit be fully refunded?

[Case Overview]

After giving birth, Ms. Xi wanted to rent an apartment to live in with her baby. Through an agent¡¯s recommendation, she selected a property that she favored.

During discussions with the landlord, Mr. Zhang, Ms. Xi clearly stated that she was currently breastfeeding and had an infant at home. Subsequently, the two parties reached a preliminary agreement on the rental arrangement, stipulating that the property would be rented as an empty unit. Ms. Xi paid a deposit of 41,000 yuan through the agent.

Out of concern for her own health and that of her baby, Ms. Xi requested an air quality test of the apartment. With Mr. Zhang¡¯s consent, a testing agency came to the apartment to collect samples. However, at that time, the previous tenant had not yet completely moved out, and some furniture remained inside the apartment. The final test report revealed that formaldehyde concentrations at several locations in the apartment exceeded the permissible levels.

Ms. Xi believed that the formaldehyde levels in the house exceeded the standard, posing a serious threat to her own health and that of her baby. As a result, the fundamental purpose of the lease agreement cannot be fulfilled, and she therefore requested termination of the lease and a refund of the deposit. Mr. Zhang, on the other hand, argued that at the time of testing, the house was not in the agreed-upon ¡°empty¡± condition as stipulated in the agreement; thus, the testing results did not objectively reflect the actual condition of the property upon delivery. Moreover, the two parties had previously agreed that ¡°the deposit is non-refundable,¡± so he refused to return the fund. After unsuccessful negotiations, Ms. Xi filed a lawsuit with a people¡¯s court.

[People¡¯s Court Judgment]

In the second instance, the people¡¯s court held that this case was not merely a dispute over the application of the penalty clause for earnest money; rather, it concerned the issue of safeguarding people¡¯s livelihoods and protecting the health rights and interests of breastfeeding women and infants. During the earlier negotiation process, Mr. Zhang had already been clearly informed that Ms. Xi was breastfeeding and had an infant at home. Elevated formaldehyde levels in her home pose a more significant health risk to breastfeeding women and their infants than to other population groups. Although the property was not vacant at the time of testing¡ªpotentially affecting localized readings¡ªthe fact remains that formaldehyde concentrations exceeded the standard at multiple sampling points. Moreover, formaldehyde emissions are persistent, enough to reasonably cause Ms. Xi to worry about the safety and health of her living environment. As the landlord, Mr. Zhang is legally obliged to ensure that the leased property meets all safety, hygiene, and other relevant requirements for residential use; this obligation cannot be waived simply because of the property¡¯s current condition upon delivery.

On this basis, the people¡¯s court thoroughly explained the law and reasoned with Mr. Zhang while also guiding Ms. Xi to express her demands reasonably. Ultimately, this facilitated the voluntary conclusion of a mediation agreement between the two parties, and Mr. Zhang returned the full deposit of 41,000 yuan to Ms. Xi on the spot.

[Judge¡¯s Reflections]

I.           The lessor is legally obliged to ensure that the property is fit for rental purposes.

Article 708 of the Civil Code of the People¡¯ Republic of China stipulates, ¡°A lessor shall deliver the leased object to the lessee in accordance with the agreement and keep the leased object fit for the agreed use during the lease term.¡± This means that the property delivered by the lessor must not only conform to the subject matter specified in the contract but also meet basic living standards such as safety and hygiene. This ¡°obligation of fitness for rental¡± is one of the lessor¡¯s most fundamental legal obligations.

On September 15, 2025, China¡¯s first administrative regulation specifically governing housing rental activities, the Regulations on Housing Rental (hereinafter referred to as the ¡°Regulations¡±), officially came into effect. Article 7 of the Regulations explicitly stipulates, ¡°Housing intended for rental shall comply with applicable laws, regulations, rules, and mandatory standards concerning the aspects such as construction, fire safety, gas usage, and interior decoration and renovation, and must not pose a risk to personal safety and health.¡± This provision directly addresses the problems in the rental market, such as ¡°formaldehyde-contaminated houses,¡± and clearly establishes at the level of administrative regulations that ensuring indoor air quality meets standards is a legal obligation that landlords must fulfill. Formaldehyde is a well-known harmful substance, and prolonged exposure can cause serious harm to human health. In this case, the testing report revealed that formaldehyde concentrations at multiple locations within the property exceeded the permissible limits. Given that the landlord was aware the tenant had an infant, he should have taken extra precautions to ensure the property¡¯s indoor air quality met the required standards.

II.         The lessee has the right to refuse a leased property that poses a health hazard.

Article 731 of the Civil Code of the People¡¯s Republic of China stipulates, ¡°Where a leased object endangers a lessee¡¯s safety or health, the lessee may rescind the contract at any time, even if the lessee is clearly aware of the substandard quality of the leased object upon concluding the contract.¡± This provision grants lessees, when confronted with safety hazards, a statutory right to terminate the contract, reflecting the legal protection afforded to lessees¡¯ rights to life and health.

In this case, the two parties already reached an agreement in principle regarding the lease. However, the inspection report indicated that the formaldehyde concentration in the property exceeded the standard, posing a potential risk to the health of its occupants. Under these circumstances, Ms. Xi refused to proceed with signing the lease contract. Her conduct does not constitute a breach of contract, and this is precisely where the institutional value of Article 731 of the Civil Code lies.

III.    Judicial rulings must not only respect contractual agreements but also safeguard people¡¯s livelihoods.

Article 1004 of the Civil Code of the People¡¯s Republic of China explicitly stipulates, ¡°A natural person enjoys the right to health.¡± The right to health is an essential component of personality rights. When the performance of a contract conflicts with citizens¡¯ most fundamental right to life and health, the right to life and health shall be given priority protection. In this case, Ms. Xi, the lessee, was in the special postpartum lactation period, and her concern about excessive formaldehyde levels in the property was entirely reasonable. Therefore, during the trial of this case, the court did not dwell on secondary details such as whether the property was vacant at the time of testing; rather, it focused on the core fact that elevated formaldehyde levels could pose a threat to the health of the occupants, and gave full consideration to the rights and interests of vulnerable groups, including postpartum mothers and infants.

This case was properly resolved through mediation, which not only respected the autonomy of both parties but also effectively protected the legitimate rights and interests of the vulnerable group, ensuring that fairness and justice were realized in a visible and tangible manner. During the trial, by thoroughly explaining the law and reasoning with the landlord, the court not only clarified the landlord¡¯s statutory duty to provide safety guarantees but also conveyed to the public a clear message: housing rental safety must never be taken lightly, and the protection of citizens¡¯ health rights must remain paramount. Moreover, the approach taken in this case is highly consistent with the legislative spirit of the Regulations, which emphasize the protection of tenants¡¯ legitimate rights and interests and the creation of a healthy and orderly housing rental market, thereby demonstrating the judiciary¡¯s sense of responsibility in safeguarding the people¡¯s basic livelihoods.

[Member¡¯s Comment]

Wang Yan, Member of the Shanghai Municipal Committee of the Chinese People¡¯s Political Consultative Conference, and Director of the Shanghai Institute for Drug Control

Only when people have a stable home can they pursue their careers with peace of mind. For every family striving to make a living in the city, a safe and healthy home is the most solid foundation upon which they can establish themselves and embrace a better life. This case precisely addresses a widespread and profound pain point in the housing rental market¡ªthe issue of ¡°formaldehyde-contaminated houses.¡±

For families that have just welcomed a new life, a living environment free from toxins and hazards is an absolute non-negotiable bottom line. In handling this case, the people¡¯s court did not confine itself to formal disputes over contractual terms; rather, it squarely confronted the core fact that formaldehyde levels exceeded the standard, posing a potential threat to the health of residents. The court gave full consideration to the legitimate concerns of the special tenant group, the nursing mother and the infant. Through extensive, patient, and meticulous mediation efforts, the court successfully persuaded the landlord to immediately return the entire deposit on the spot, thereby ensuring that the tenant¡¯s legal rights and interests were promptly upheld. This case also sends a clear signal to society: the right to a healthy living environment must be respected and protected, and the judiciary serves as a strong backing for the safety and well-being of people¡¯s lives and bodies. It can be said that the successful resolution of this case perfectly echoes the spirit of the newly revised Regulations on Housing Rental, providing valuable reference for resolving similar disputes involving ¡°formaldehyde-contaminated houses¡± while vividly illustrating the judiciary¡¯s responsibility and expectation to safeguard the warmth and security of every household.

[Applicable Articles]

I. Civil Code of the People¡¯s Republic of China

Article 708 A lessor shall deliver the leased object to the lessee in accordance with the agreement and keep the leased object fit for the agreed use during the lease term.

Article 731 Where a leased object endangers a lessee¡¯s safety or health, the lessee may rescind the contract at any time, even if the lessee is clearly aware of the substandard quality of the leased object upon concluding the contract.

Article 1004 A natural person enjoys the right to health. A natural persons¡¯ physical and mental health are protected by law and free from infringement by any organization or individual.

II. Regulations on Housing Rental

Article 7 Housing intended for rental shall comply with applicable laws, regulations, rules, and mandatory standards concerning the aspects such as construction, fire safety, gas usage, and interior decoration and renovation, and must not pose a risk to personal safety and health.