Will defaulting on property management fees affect the transfer of ownership? What are the standards for charging property management fees?

Many property owners want to know and understand the standards for charging property management fees. On the one hand, the standards for charging property management fees are subject to the constraints of relevant national policies and regulations, and cannot be charged arbitrarily; on the other hand, the standards for charging property management fees are also subject to the restrictions of the user's income level and must also follow the principle of high quality and high price. If you still don't understand it clearly, please see the detailed introduction below.

Contents of this article

1. Will the failure to pay property fees affect the transfer of ownership?

2. What are the standards for charging property fees?

3. Is there any late payment fee for owing property management fees?

Will the failure to pay property fees affect the transfer of ownership?

Property management fees are fees charged by property owners and users to property management units for daily maintenance, repair, and improvement of public buildings and their equipment, public facilities, greening, sanitation, transportation, public security, and the environment within residential communities, as well as provision of other services related to residents' lives.

In general, defaulting on property management fees does not affect the transfer of ownership. In the current relevant new regulations, the provision that owners who fail to pay property management service fees will be subject to certain restrictions in the housing transfer and mortgage registration process has been cancelled. Therefore, defaulting on property management fees does not affect the transfer of ownership.

Legal Basis:

According to the Property Management Regulations, Owners' Meeting Rules and Owners' Convention, owners should pay service fees in full and on time, and the Owners' Committee has the responsibility and obligation to collect service fees. If the owner still fails to pay after being collected, the court may be used to sue.

What are the standards for charging property fees?

If the community has established an owners' association, the property management service charges will be subject to market-adjusted prices, and the owners' association and the property management company will negotiate and set the charging standards. On the one hand, the property management fee collection standards must be subject to the relevant national policies and regulations, and cannot be charged arbitrarily; on the other hand, the property management fee collection standards must also be subject to the user's income level and must also follow the principle of high quality and high price.

【Legal basis】

Article 40 of the Property Management Regulations states that property service charges should follow the principles of rationality, publicity, and that the fees should be commensurate with the service level, and should distinguish the nature and characteristics of different properties. The property owners and property service companies shall agree on the property service fee method formulated by the price regulatory department of the State Council in conjunction with the construction administrative department of the State Council in the property service contract.

Are there any late payment fees for owing property management fees?

Whether there is a late payment penalty for unpaid property fees depends mainly on the "Property Service Contract" between the owner and the property management unit. Strictly speaking, the late payment penalty here is essentially a penalty for breach of contract, because the failure to pay property fees violates the "Property Service Contract" signed by both parties. If there is a clause about late payment fees in the contract, it shall be executed in accordance with the contract. If there is no agreement in the contract, the property management unit shall not collect it without authorization. It is very likely that you will need to pay a late payment penalty (penalty for breach of contract) for overdue property fees. The specific amount depends on the specific agreement of the "Property Management Contract", which is generally agreed to be 0.03%. Therefore, it is recommended that all owners pay the property fees in time, and if there is any arrears, please make up the payment as soon as possible.

Legal Basis:

Article 7 of the Property Management Regulations

In the course of property management activities, owners shall perform the following obligations: (a) comply with management regulations and the rules of procedure for owners' meetings; (b) comply with rules and regulations regarding the use of common property parts and common facilities and equipment, the maintenance of public order and environmental sanitation within the property management area; (c) implement decisions of the owners' meeting and decisions made by the owners' committee authorized by the owners' meeting; (d) pay special maintenance funds in accordance with relevant national regulations; (e) pay property service fees on time; and (f) other obligations prescribed by laws and regulations.