Regulations of Qingdao City on Property Management

• Area of Law： Real Estate
• Level of Authority： Regulations of Districted Cities
• Date issued：11-25-2005
• Effective Date：01-01-2006
• Status： Effective
• Issuing Authority： Shandong Province

Announcement of the Standing Committee of Qingdao Municipal People's Congress
The Regulations of Qingdao City on Property Management were amended at the 24th Session of the Standing Committee of the 13th Qingdao Municipal People's Congress and approved at the 17th session of the Standing Committee of the tenth Shandong Provincial People's Congress, are hereby promulgated and shall be effective as of January 1, 2006.
November 25, 2005
Regulations of Qingdao City on Property Management
(Adopted at the 24th Session of the Standing Committee of the 13th Qingdao Municipal People's Congress on October 26, 2005 and approved at the 17th session of the Standing Committee of the tenth Shandong Provincial People's Congress)
Chapter I General Provisions
Article 1 For the purposes of standardizing the activity of property management, protecting the legitimate rights and interests of proprietors, property users, and property management enterprises, and improving the living and work environment of the masses of the people, these Regulations are formulated in accordance with provisions of relevant laws and regulations, and in the light of the actual circumstance of this City.
Article 2 These Regulations apply to the property management and the supervision and control of the activities thereof in the administrative area of this City.
Article 3 The city and district (county-level city) competent administrative departments of property management shall carry out supervision and control of the property management activities in their respective jurisdictions.
The city and district (county-level city) administrative departments of property management shall take specific charge of the supervision and control of the property management activities in their respective jurisdictions.
Relevant administrative departments shall, according to their legal functions and duties, do well in the work relating to property management.
Sub-district offices (town people's governments) shall, pursuant to provisions of these Regulations, take charge of coordination and guidance in the property management activities.
Article 4 Proprietors may manage their properties by themselves and may also entrust a property management enterprise or other managerial personnel with the management thereof.
Article 5 The property management enterprise shall conduct property management as provided by the law and regulation concerning property management and as agreed on in the property service contract; proprietors shall support and cooperate with the property management enterprise in carrying out the work.
Chapter II Proprietors and Proprietors Conference
Article 6 The system of proprietors register shall be established.
The proprietors register shall be established and managed by the proprietors committee. Where the property is under early-stage property management, the developer shall establish the proprietors register and shall transfer it to the proprietors committee for management after its establishment.
Where any proprietors are changed, the new proprietors shall make alteration registration in the proprietors register.
Article 7 In delimiting a property management area, such factors as urban planning, architectural scale, community building, common facilities and equipment of the property and auxiliary projects shall be taken into consideration.
A newly built residential quarter, including the residential quarter constructed by stages or developed and constructed by more than two developers, with common auxiliary facilities shall be delimited as a single property management area.
The developer, when applying for the building permit, shall make a written request to the district (county-level city) administrative department of property management for delimiting the property management area, and the district (county-level city) administrative department of property management shall, jointly with the sub-district office (township peoples government), delimit the property management area according to the provisions of Clause 1 and Clause 2 of this Article.
With respect to a property management area that has not yet been delimited or needs to be adjusted, the district (county-level city) administrative department of property management shall, jointly with the sub-district office (township people's government), make delimitation or adjustment in line with actual circumstances. With respect to a trans-district (county-level city) residential quarter, the municipal administrative department of property management shall delimit or adjust the property management area according to the provisions of Clause 1 and Clause 2 of this Article.
Article 8 Only one proprietors conference shall be set up for one property management area. The proprietors conference shall be composed of all the proprietors in a property management area.
Where there is only one proprietor or where the proprietors are rather small in number and unanimously decide not to set up the proprietors conference, the proprietors shall jointly discharge the functions of the proprietors conference and the proprietors committee.
Article 9 Where one of the following conditions is met, the developer shall report in writing to the district (county-level city) administrative department of property management at the locality of the property about the situation of the floor area of the property and the times of sale and delivery for use of the property, and furnish the proprietors register; where the developer fails to make a written report in time, the proprietors may make a written request to the district (county-level city) administrative department of property management for the establishment of the proprietors conference:
(1) the occupation rate reaches over 50 percent; and
(2) the occupation rate reaches over 30 percent and the occupation procedure of the first housing unit has been completed for two full years.
The district (county-level city) administrative department of property management shall, upon receiving a written report from the developer or a written request from the proprietor, organize, jointly with the subdistrict office (township people's government) at the locality of the property, the preparatory group of the proprietor's conference. The preparatory group shall be composed of representatives of proprietors and members of the neighborhood committee.
The name list of the members of the preparatory group shall, within three days from the date of its establishment, be made public in writing in the property management area.
Article 10 The preparatory group shall take charge of the following preparatory work:
(1) determining the time, place, form and contents of the inaugural meeting of the proprietors conference;
(2) preparing the “draft rules of procedure of the proprietors conference” and the “draft joint pledge of proprietors” by reference to the model text drawn up by the administrative department of property management;
(3) registering and confirming the identification of proprietors;
(4) determining the method of recommending candidates for members of the proprietors committee and the name list thereof; and
(5) other preparatory work.
The contents of Items (1), (2), (3) and (4) of the preceding clause shall be made public in writing in the property management area 15 days before the inaugural meeting of the proprietor's conference is convened.
Article 11 The preparatory group shall, within 30 days after the date of its formation, organize and convene the inaugural meeting of the proprietors conference, elect the proprietors committee and draw up the rules of procedure of the proprietor conference, the proprietors' joint pledge, etc..
The proprietor's conference shall be constituted on the day when the inaugural meeting of the proprietor's conference is convened.
Article 12 In convening the inaugural meeting of the proprietors conference, the preparatory group shall notify beforehand the local district (county-level city) administrative department of property management, sub-district office (township people's government) and neighborhood committee of the time, place and agenda of the meeting, inviting them to send representatives to attend the meeting.
Article 13 A meeting of the proprietor's conference may adopt either the form of collective discussion or that of a questionnaire.
Where the proprietors are fairly large in number, they may select one representative of proprietors for each building, unit or storey to attend the meeting of the proprietor's conference.
Where proprietors' representative are selected to attend the meeting of the proprietors conference, they shall, three days before their attendance at the meeting of the proprietors conference, write to solicit opinions on matters to be discussed at the meeting from the proprietors they represent. Where voting is required, the proprietors' representatives shall truthfully reflect the proprietors' signed opinions in their votes cast at the proprietor's conference.
The proprietors committee shall put down in writing the matters decided at the proprietors conference and shall keep them on record.
Matters decided at the proprietors conference shall, within three days, be published in writing in the property management area.
Article 14 Matters decided at the proprietor's conference are binding on all proprietors and property users in the property management area but shall not contravene the provisions of laws, rules or regulations.
Article 15 The rules of procedure of the proprietors conference shall specify according to laws such matters as the mode of discussion, voting procedures, the modes of proposing and determining topics for discussion, the measure for ascertaining the voting right of proprietors and the composition, term, change of office term and change of members of the proprietors committee.
Article 16 The proprietors committee shall, within 30 days from the date of its formation by election, register for the record at the local district (county-level city) administrative department of property management with the following materials:
(1) the minutes and decisions of the meetings of the proprietors conference;
(2) the rules of procedure of the proprietors conference; and
(3) the name list of members of the proprietors committee and their basic particulars.
The name list of members of the proprietors committee shall, within three days of its being filed on record, be published in writing in the property management area.
The removal of any member of the proprietors committee according to the rules of procedure of the proprietor's conference shall be put on record and published pursuant to the provisions of Clause 1 and Clause 2 of this Article.
Article 17 When the proprietors committee constituted by election according to laws is put on record, the district (county-level city) administrative department of property management shall issue a certificate for having put on record the proprietors committee and a certificate for engraving its seal. The proprietors committee shall have its seal engraved and used according to laws.
Article 18 The proprietors committee shall, two months before the expiration of its office term, submit a written report to the district (county-level city) administrative department of property management, and shall, under the guidance of the district (county-level city) administrative department of property management and the sub-district office (township people's government), organize the proprietors to set up a work group for the end-of-term new election and convene the meeting of the proprietors conference to elect a new proprietors committee.
Where the proprietors committee fails to convene the proprietors conference at the end of its term, the local district (county-level city) administrative department of property management and the subdistrict office (township people's government) shall, upon receiving the written request from proprietors, organize the proprietors to set up a work group for the end-of-term new election. That work group shall, within 30 days after its set-up, convene the meeting of the proprietors conference to elect a new proprietors committee.
Within 10 days after the new proprietors committee elected at the meeting of the proprietors conference, the original proprietors committee shall hand over the documents and materials, the seal and other property belonging to the proprietors conference in its keeping to the new proprietors committee and shall do well in the hand-and-take -over work.
Article 19 Where there are more than two buildings in the same property management area, one proprietors group may be set up for each building, unit or storey. A proprietors group shall be made up of all proprietors of the building, the unit or the storey.
A proprietors group shall perform the following functions and duties:
(1) discussing matters put forward for discussion by the proprietors conference; and
(2) choosing representatives to attend the meeting of the proprietors conference to voice the opinion and wishes of the group. The meeting of a proprietors group may adopt either the form of collective discussion or that of a questionnaire.
Chapter III Early-stage Property Management
Article 20 A developer of residential property (including non-residential property in the same property management area) shall openly select and engage a property management enterprise with corresponding qualification through public bidding to carry out the early-stage property management. However, where the bidders are less than three in number or the residential property is less than 30,000 m2. in floor area, the developer may, subject to approval by the district (county-level city) administrative department of property management, select and engage a property management enterprise with corresponding qualification through negotiation and consultation to carry out the early-stage property management.
Article 21 The developer, when engaging a property management enterprise, shall sign the early- stage property service contract with the latter. The early-stage property service contract shall include such contents as service contents, service standards, fee-charging items and criteria, fee-calculating mode and starting time.
The sales contract signed between the developer and the vendee shall include the contents agreed on in the early-stage property service contract.
Article 22 An early-stage property service contract shall specify the term, which is not to exceed two years at most. The property constructed by stages is an exception.
The early-stage property service contract shall terminate if the proprietors conference select and engage a new property management enterprise before the expiration of the contract.
Where, at the expiration of an early-stage property service contract, the proprietors conference has not been established or although established, it has not selected and engaged a new property management enterprise, the original property management enterprise may, as agreed on in the early-stage property service contract, continue with property management service until the day when the proprietors conference selects and engages a new one. Proprietors shall pay property service fees according to the fee-charge standards for early-stage property service as agreed on in the property sales contract. However, if the proprietor's conference requests the property management enterprise to quit, the latter shall quit.
The property management enterprise, if not continuing with property management service at the expiration of the early-stage property service contract, shall give a notice to proprietors two months before the expiration thereof.
Article 23 The developer shall, before selling a property, draw up an interim proprietors' joint pledge by reference to the model text of the State, and shall clearly show it to the vendee of the property.
The vendee of the property, when signing a property sales contract with the developer, shall make a written commitment to observing the interim proprietors' joint pledge.
Article 24 When the developer organizes the acceptance check upon completion or the comprehensive acceptance check, the district (county-level city) administrative department of property management shall check the following materials:
(1) acceptance materials such as the general plane layout drawings, acceptance drawings of single buildings, structure and equipment, acceptance drawings of auxiliary facilities and underground pipe network engineering;
(2) technical data for installation, use and maintenance of facilities and equipment;
(3) property quality warranty and property operating instructions;
(4) proprietors register; and
(5) other necessary materials for property management.
The developer, when handling the property acceptance procedure with the property management enterprise, shall turn over all the materials set out in the preceding clause and the houses used for property management. The property management enterprise shall check and register in book form the common places, facilities and equipment as well as the houses used for property management.
Article 25 The developer shall allocate a house to be used for property management in the property management area in proportion to 5 per thousand of the gross floor area under development and construction, and the house shall not be less than 100 m2. The administrative department of planning, when examining and approving the planning of the construction project, shall check the project planning design to see whether it complies with the provision set out in the preceding clause. In case of non-compliance with the provision, the related certificate shall not be issued.
The developer, when applying for the advance sale permit of commodity housing and for the registration of real estate ownership, shall submit materials relating to the area and location of the house to be used for property management. The real estate ownership registration organ, when issuing the advance sale permit of commodity housing and processing the registration of real estate ownership, shall clearly state the location of the house to be used for property management in the related materials, and notify the district (county-level city) administrative department of property management.
Article 26 The house used for property management belongs to all proprietors. The property management enterprise shall make public matters about such house in the property management area, use such house without compensation and take charge of maintenance thereof.
The house used for property management shall not be mortgaged, exchanged, bought or sold; and, without the consent of the proprietor's conference, such house shall not be diverted to any purpose.
Article 27 The developer shall bear the property service expenses incurred in the period from the effective date of the contract for early-stage property services to the month in which the day of delivery of the sold house falls.
The property service expenses incurred in the period from the month following the delivery day of the sold house to the expiry date of the contract for early-stage property services shall be borne by the vendee of the property according to the early-stage property service fee-charge standards as agreed on in the property sales contract; in case no agreement is made in this regard in the property sales contract, the developer shall bear such expenses.
Chapter IV Property Management Service
Article 28 The property management enterprise shall, within 30 days after taking out the business license, apply for qualification by presenting the required papers and data to the city competent administrative department of property management. The administrative department of property management shall establish the credit archives of property management enterprises and make such archives available to the public.
Article 29 One property management enterprise shall provide property services for one property management area. The engagement, renewal of engagement and discharge of the property management enterprise shall be decided by the proprietor's conference convened by the proprietors committee.
The draft contract for property services shall be published in the property management area to adequately solicit opinions from proprietors.
Article 30 The property management enterprise shall provide corresponding services as agreed on in the property service contract. The property service contract may agree on the following matters:
(1) collection of domestic garbage and sweeping and keeping the environment clean;
(2) maintaining public order and security inspection in the property management area;
(3) control over the traffic and parking order in the property management area;
(4) maintenance of yard green area and facilities therein;
(5) daily operation and maintenance of common places, facilities and equipment;
(6) notification to relevant units for repairs of public utility facilities; and
(7) other matters agreed on in the property service contract.
Article 31 Property service fees shall be changed according to the property service charging procedure drawn up by the municipal administrative department of price jointly with the municipal competent administrative department of property management, and shall be agreed on in the property service contract, subject to supervision and inspection by the price authority.
Where the property management enterprise offers appointed services at a proprietor's request, the two sides shall agree on the service remuneration.
Article 32 The proprietor shall pay property service fees on schedule as agreed on in the property service contract. Where the proprietor and the property user agree on the payment by the latter of property service fees, such agreement shall be followed but the proprietor shall bear the joint liability for payment.
The property service fees for a property completed but not yet sold or delivered to the vendee thereof shall be paid in full by the developer according to the standards.
Article 33 The property management enterprise may advance the charging of property service fees by not more than three months. However, where the property service contract agrees on the collection of fees after services, such agreement shall be followed.
Article 34 Where a property service contract is not renewed at the expiration or is terminated ahead of time as prescribed by the law or agreed on, the opposite side shall be notified two months beforehand.
At the termination of a property service contract the property management enterprise shall, under the supervision by the district (county-level city) administrative department of property management, return to the proprietors committee the house used for property management and the materials set out in Article 24 of these Regulations, and the proprietors committee shall turn over the house and materials to the property management enterprise that is newly engaged.
Article 35 The property management enterprise shall not obstruct relevant law enforcers in entering the property management area to perform their official duties.
The property management enterprise shall curb and timely report to relevant administrative departments any act of contravening the provisions of the laws and regulations concerning planning, public security, fire prevention, environmental protection, property decoration, public utility facilities and greening in the property management area.
Relevant administrative departments shall, upon receiving the report from the property management enterprise, handle such wrongful acts in time according to laws.
Article 36 The administrative department of property management shall institute a compliant- accepting system and handle in time the complaints lodged by proprietors, the proprietors committee, property users, and the property management enterprise in the property management activities.
Chapter V Use and Maintenance of Property
Article 37 The purpose of common buildings and facilities constructed according to the planning in the property management area shall not be altered without authorization.
Article 38 The parking lot (garage) in the property management area shall be provided to the proprietors and property users in such area for use.
Article 39 Units of water supply, power supply, gas supply, and heat supply, postal service, communications and cable television shall undertake responsibilities for repairs and maintenance of relevant pipeline, facilities and equipment in the property management area, according to laws.
The units set out in the preceding clause, when conducting engineering construction work in the property management area, shall notify and sign agreements with the property management enterprise before the construction and shall do a good job of restoration of the construction site.
Article 40 A proprietor shall, in making home decoration or renovation, comply with the provisions set by the State and this City, as well as the proprietors' joint pledge or the interim proprietors' joint pledge.
A proprietor that sets about making home decoration or renovation shall notify the property management enterprise in advance. The property management enterprise shall inform the proprietor of the acts that are prohibited and the points for attention in making home decoration or renovation, as well as the mode of clearing and transporting away the building rubbish, and shall sign a relevant agreement with the proprietor.
Article 41 The special maintenance fund for the common places, facilities and equipment of the property shall be raised in accordance with relevant provisions of the State, and shall belong to the proprietors; such fund shall be used for repairs and maintenance of the common places, facilities and equipment of the property, and for renewal or renovation of large facilities and equipment after the expiry of the warranty term for the property, and such funds shall not be diverted to any other purpose.
Article 42 In inviting bids for a residential construction project, the development unit shall specify in the bid documents the retention of a deposit for construction project quality in the proportion of five percent of the gross settlement amount of project costs, and shall agree with the construction work unit on matters involving the deposit in the contract terms and conditions. The deposit for the construction project quality shall be kept in a special account, and be used only for repairs and maintenance within the property warranty term.
The developer shall, after settlement of accounts for the residential construction project completed, pay in time the construction unit the settled project costs and retain the deposit as agreed on in the contract.
The contractor shall take charge of repairs and maintenance and bear the expenses for appraisal and repairs and maintenance if the residential property has quality problems caused by itself. The developer may make the payment of such expenses from the deposit as agreed on in the contract if the contractor does not do repairs and maintenance nor bears such expenses.
The developer shall return the deposit to the contractor at the expiration of the term for retaining the deposit as agreed on in the contract.
Article 43 Where the proprietors conference decides on the utilization of the common place, facility or equipment of the property to conduct business, relevant formalities shall be completed as provided. The proceeds generated thereby shall be used mainly to replenish the special maintenance fund and may also be put to use as decided by the proprietors conference.
Chapter VI Legal Liability
Article 44 For any violation of the provisions of these Regulations that is subject to administrative punishment given by the competent administrative department of property management under the “Regulations on Property Management” of the State Council, that department shall give administrative punishment according to laws.
Article 45 For any violation of provisions of these Regulations that is to be punished by the departments of industry and commerce, price, public security, environmental protection, urban administration, urban gardening and greening according to laws, the relevant department shall give administrative punishment according to laws.
Article 46 The party concerned, if disagreeing with the punishment decision of the administrative organ, may apply for administrative reconsideration or bring an administrative lawsuit. If the party concerned fails to perform the punishment decision within the prescribed time limit, the administrative organ that made the punishment decision may apply to the people's court for coercive enforcement according to laws.
Article 47 Where the relevant administrative department shall curb and punish any illegal act in the property management area after discovering it or receiving a report thereon from the property management enterprise, but fails to do so, the authority at the higher level or the supervisory organ shall order that department to make corrections; if serious consequences are caused, the person in direct charge and other directly responsible persons shall be given administrative sanction according to laws; if the wrongful act constitutes a crime, the wrongdoers shall be prosecuted for criminal liability according to laws.
Chapter VII Supplementary Provisions
Article 48 Property referred to in these Regulations means the houses, public buildings and auxiliary facilities, and equipment that have been completed and delivered for use, and the relevant grounds.
Early-stage property management referred to in these Regulations means the property management activities conducted for a newly built property by the property management enterprise selected and engaged by the developer before the proprietors or the proprietors conference selects and engages a property management enterprise for the first time.
Property management referred to in these Regulations means the activities of repairing, maintaining and managing the houses and support facilities, equipment and relevant grounds, and of maintaining environmental sanitation and order in the related areas that are to be conducted as agreed on in the property service contract by proprietors and the property management enterprise they have selected and engaged.
Property management enterprise referred to in these Regulations means an enterprise that has acquired the status of an independent legal person according to laws, has corresponding qualifications, and is engaged in the property management activities.
Proprietor referred to in these Regulations means the title deed holder of a house.
Property user referred to in these Regulations means the tenant of a property and any one who actually uses a property.
Article 49 These Regulations shall be effective as of January 1, 2006.