Provisions of Shanghai Municipality on Residential Property Management

· Document Number：Announcement No. 31 of the Standing Committee of the People's Congress of Shanghai Municipality

· Area of Law： Real Estate

· Level of Authority： Provincial Local Regulations

· Date issued：12-23-2010

· Status： Effective

· Issuing Authority： Shanghai Municipality

Announcement of the Standing Committee of the People's Congress of Shanghai Municipality
(No. 31)
The Provisions of Shanghai Municipality on Residential Property Management, as adopted at the 31st Session of the Standing Committee of the Thirteenth People's Congress of Shanghai Municipality on December 23, 2010, is hereby issued and shall come into force on April 1, 2011.
Standing Committee of the People's Congress of Shanghai Municipality
December 23, 2010
Provisions of Shanghai Municipality on Residential Property Management

(Adopted at the 14th Session of the Standing Committee of the 12th Shanghai Municipal People's Congress on August 19, 2004, and Revised at the 23rd Session of the Standing Committee of the 13th Shanghai Municipal People's Congress on December 23, 2010)
Chapter I General Provisions
Article 1 With a view to regulating residential property management activities and safeguarding the legitimate rights and interests of property owners and property service enterprises, these Provisions are formulated according to the Property Law of the People's Republic of China, the Regulations on Property Management of the State Council, and other relevant laws and administrative regulations, and in the light of the actual circumstances of this Municipality.
Article 2 These Provisions shall apply to the management and use of residential properties, and the supervision and control thereof within the jurisdiction of this Municipality.
Article 3 The term “residential property management” (hereinafter referred to as “property management”) as mentioned in these Provisions refers to the activities of repair, maintenance, and management of the buildings and their supporting facilities, equipment and relevant grounds to keep them in good order and healthy environments that are to be carried out by the property owners and the property service enterprise selected and hired by the property owners in accordance with the terms in the property service contract, or in any other forms.
The term “property owner” as mentioned in these Provisions refers to the title deed holder of a property.
The term “user” as mentioned in these Provisions refers to the lessee of a property or anyone who actually uses a property.
The term “property service enterprise” as mentioned in these Provisions refers to an enterprise that has acquired by law the status of independent legal personality with the appropriate qualifications and is engaged in property service.
Article 4 The municipal housing administrative department shall be in charge of the supervision and administration of property management in this Municipality. The district/county housing administrative department shall be in charge of the supervision and administration of property management within its own jurisdiction; the housing administrative offices under it (hereinafter referred to as the “housing offices”) shall take on specific matters.
The municipal and district/county housing administrative departments shall perform the following functions and duties:
1. guiding, supervising and administrating the congress and the committee of property owners;
2. supervising and administrating property service enterprises and their employees;
3. guiding and supervising the collection and use of the special maintenance fund;
4. supervising and administrating the use and maintenance of properties; and
5. other supervising and administrative functions and duties related to property management.
Article 5 The district/county people's government shall institute a working system for the comprehensive administration of residential districts, organize relevant district/county administrative departments and units to arrange, promote and coordinate the matters in property management within their jurisdictions, and guide and supervise the work of property owners' congresses and committees.
The town/township people's government and the sub-district office shall, within their jurisdictions, institute a working system for the comprehensive administration of residential districts, coordinate and handle general matters in property management, settle disputes, and guide and supervise the property owners' congresses, the establishment and daily work of the property owners' committees.　
Article 6 As a social organization for the service and self-discipline management of the whole trade, the municipal property management association shall formulate and implement self-discipline norms according to law, organize professional trainings, mediate disputes between property service enterprises, and safeguard the legitimate rights and interests of property service enterprises.
This Municipality encourages property service enterprises to join the municipal property management association.
Chapter II Property Owners and Property Owners' Congress
Article 7 A residential district with common supporting facilities and equipment, including those that are constructed by stages or by two or more development units jointly, shall be delimited as independent property management areas. In case a residential district is partitioned into two or more geographic neighborhoods or separate communities by roads and/or streams and the responsibilities for management and maintenance of their common supporting facilities and equipment can be clearly defined, each of them may be delimited as an independent property management area by itself.
Article 8 The housing administrative department shall be in charge of approving property management areas.
When examining the design of the construction of a residential district, the planning administrative department shall consult the district/county housing administrative department concerned for its ideas of the delimitation of the property management areas.
When applying for the permit for a planned residential construction project, the development unit shall make a request to the district/county housing administrative department concerned for the delimitation of the property management areas and the district/county housing administrative department, in turn, shall decide on the delimitation within 5 days.
In selling its houses, the development unit shall specify the property management area delimited by the district/county housing administrative department to the buyers in the house sale contracts.
Article 9 Where a property management area has not yet been delimited or has to be adjusted, the district/county housing administrative department shall, jointly with the town/township people's government or the sub-district office, determine the delimitation in accordance with Article 7 and in consideration of the coverage of the local neighborhood or villagers committee. In case the property management area is to be adjusted, the adjustment shall be approved by the property owners who possess exclusive areas accounting for more than half of the total gross floor area of buildings and by the property owners who account for more than half of the total number of property owners.
After a property management area is adjusted, the district/county housing administrative department shall make public the adjustment in it.
Article 10 The following documents shall be forwarded to the housing office by the development unit to apply for the house delivery permission:
1. completion examination and acceptance files such as the site plan of the completion, drawings of the completed individual buildings, architectural structures, equipment, supporting facilities and underground pipelines;
2. technical files of the installment, use and maintenance of the facilities and equipment;
3. property quality guarantees and property use instructions; and
4. other files necessary for property management.
The development unit shall hand over the files as provided in the preceding clause to the property service enterprise when the former goes through the procedures of examination and acceptance with the latter.
The property owner may check with the housing office or the property service enterprise for the files related to his/her property management area as provided in Clause 1.
Article 11 In property management, the property owner is entitled not only to the rights as provided in the Property Law of the People's Republic of China and the Regulations on Property Management of the State Council, but also the right to propose the convening of the inaugural meeting of the property owners' congress.
In property management, the property owner shall fulfill the obligations as provided in the Property Law of the People's Republic of China and the Regulations on Property Management of the State Council.
The property owner shall provide the property owners' committee with his/her correspondence address and means of communication directly or through the development unit, or the property service enterprise.
Article 12 The property owners' congress covers all the property owners of a property management area.
When more than 50% of the total gross floor area of buildings in a property management area has been sold and handed over for use, or after the first housing unit has been sold and handed over for use for two full years, the inaugural meeting of the property owners' congress shall be called for its formal establishment. However, where there is only one owner, or where there are too few owners and they all agree not to establish the property owners' congress, the owner(s) shall jointly perform the duties of the property owners' congress and the property owners' committee.
Article 13 Where a property management area meets one of the conditions for establishing a property owners' congress as provided in Clause 2 of Article 12, the development unit shall submit a written report for the establishment of the property owners' congress to the town/township people's government or the sub-district office in the locality with the following information and documents:
1. the approval of the property management area;
2. the certificate of the allocation of the houses of the property service enterprise and the property owners' committee (hereinafter jointly referred to as “property management houses”);
3. the detailed name list of property owners and the gross floor area of their respective properties;
4. the time of sale and of handing-over of the properties; and
5. the detailed list of the amount of the special maintenance fund collected.
In case the development unit fails to make a timely written report, property owners themselves may submit a written request for the establishment of the property owners' congress to the town/township people's government or the sub-district office.
Article 14 The town/township people's government or the sub-district office shall, within 60 days after receiving the written report from the development unit or from property owners, work jointly with the district/county housing administrative department in setting up a preparatory group of the property owners' congress (hereinafter referred to as the “preparatory group”). The preparatory group shall publicize the name list of its members in the property management area within 7 days from the date of its establishment.
The preparatory group shall consist of representatives of property owners, the development unit, the town/township people's government or the sub-district office, the housing office, and the local neighborhood or villagers committee. The preparatory group shall have an odd number of members and the representatives of property owners in it shall meet the conditions as provided in Clause 2 of Article 19 of these Provisions and shall not be less than half of the total number of members. The representative of the town/township people's government or the sub-district office shall be the head of the preparatory group.
The town/township people's government or the sub-district office shall organize the property owners to recommend and select their representatives to the preparatory group.
If any property owner has objection to any member of the preparatory group, the town/township people's government or the sub-district office shall settle the matter through coordination.
Article 15 The preparatory group shall do well the following preparatory work:
1. identifying and making public the identities, number, and respective exclusive floor areas of the property owners;
2. determining the time, place, form and contents of the inaugural meeting of the property owners' congress;
3. drafting the management covenant and the rules of procedure of the property owners' congress;
4. determining the voting procedures for the inaugural meeting of the property owners' congress;
5. formulating the selection process for candidates for the property owners' committee and fixing the list of the candidates thereof;
6. formulating the procedures for electing the property owners' committee; and
7. accomplishing other preparations for the inaugural meeting of the property owners' congress.
The matters as provided in the preceding clause shall be made public in the property management area 15 days before the convening of the inaugural meeting of the property owners' congress. If any property owner has objection to the matters made public, the preparatory group shall record the objection and make a reply to it.
The preparatory group shall convene the inaugural meeting of the property owners' congress within 90 days from the date of its establishment.
The preparatory group shall be dissolved once the property owners' committee is established according to law.
Article 16 The property owners' congress can, in addition to performing the functions and duties as provided in the Property Law of the People's Republic of China and the Regulations on Property Management of the State Council, make decisions on the operation expenditure of the property owners' committee and annul inappropriate decisions of the property owners' groups.
Article 17 The meeting of a property owners' congress may mean either property owners' get-together discussion or the collection of their written opinions. It must have the participation of the property owners who possess exclusive areas accounting for more than half of the total gross floor area of buildings and the property owners who account for more than half of the total number of property owners in the property management area.
A decision made at the meeting of the property owners' congress shall be subject to the approval by the property owners who possess exclusive areas accounting for more than half of the total gross floor area of buildings and the property owners who account for more than half of the total number of property owners. A decision made at the meeting of property owners' congress on the raise and use of the special maintenance fund or on the renovation or reconstruction of buildings or their auxiliary facilities shall be subject to the approval by the property owners who possess exclusive areas accounting for more than 2/3 of the total gross floor area of buildings and the property owners who account for more than 2/3 of the total number of owners.
A property owner may entrust an agent to attend the meeting of the property owners' congress. The agent shall present the property owner's power of attorney to the meeting and shall exercise the voting right according to his/her principal's opinions on the matter discussed.
Article 18 The rules of procedure adopted at the inaugural meeting of the property owners' congress shall include agreements on its rules of discussing and voting, the setting-up of property owners' groups, the composition and office term of the property owners' committee, and the removal and by-election of committee members.
Article 19 The property owners' committee shall be elected by a meeting of the property owners' congress and perform its functions and duties according to law. It shall have an odd membership of five or more, and an office term of 3 to 5 years.
The members of the property owners' committee shall satisfy the requirements as provided in the Regulations on Property Management of the State Council. In case a property owner who has damaged the bearing structure of the house, illegally put up buildings or structures, spoiled the house exterior, altered the usage of the property without authorization, delayed the payment of property service charges or the special maintenance fund, or illegally rent out the house, and refused to mend up, he/she shall not be a member of the property owners' committee; a member of the property owners' committee who has committed any of the aforementioned offences shall be removed according to the rules laid down by the property owners' congress.
The property owners' committee shall perform the following functions and duties:
1. calling meetings of the property owners' congress and reporting the state of property management;
2. signing the property service contract on behalf of the property owners with the property service enterprise selected by the property owners' congress;
3. collecting the opinions and suggestions of the property owners and users in good time, seeing that the property owners pay the property service charges, and supervising and assisting the property service enterprise in the execution of the property service contract;
4. supervising the implementation of the management covenant; and
5. other functions and duties assigned by the property owners' congress.
A property owners' committee shall be subject to the supervision of the property owners' congress and the property owners.
Article 20 The director and the vice director of the property owners' committee shall be elected by the property owners' committee.
The director of the property owners' committee shall be in charge of the routine matters of the property owners' committee and perform the following functions and duties:
1. calling and presiding over the meeting of the property owners' committee;
2. putting forward the topics for discussion at the meeting of the property owners' committee; and
3. signing relevant documents according to the decisions made at the meeting of the property owners' congress.
In case the director of the property owners' committee is unable to perform his/her functions and duties for a certain reason, the vice director shall work in his/her place.
Article 21 The property owners' committee shall, within 30 days from the date of its establishment by election, go to the town/township people's government or the sub-district office to present the following documents for registration:
1. the minutes of the meeting of the property owners' congress and the decisions thereof;
2. the rules of procedure of the property owners' congress;
3. the management covenant; and
4. the name list of the members of the property owners' committee and their basic personal information.
The town/township people's government or the sub-district office shall issue the certificates testifying the registration of the property owners' congress and the property owners' committee and the permit to engrave its official seal to the property owners' committee elected according to law. The property owners' committee shall have its official seal engraved, and shall use it according to law.
Article 22 The property owners' congress may have regular or temporary meetings. Its regular meetings take place by its rules of procedure. A temporary meeting shall be held when over 20% of the property owners propose it.
In calling a meeting of the property owners' congress, the property owners' committee shall notify in writing the housing office and the local neighborhood or villagers committee of the time, place, topics for discussion and agenda of the meeting, inviting their representatives and soliciting their opinions and suggestions.
Where the property owners' committee fails to call a meeting of the property owners' congress as required by law, the town/township people's government or the sub-district office shall urge it to do so before a set date; if it fails again, the town/township people's government or the sub-district office may organize a meeting upon the request of property owners.
Article 23 The property owners' committee shall have a system of regular reception to listen to the opinions and suggestions of property owners and users on the daily work of property management and the work of the property owners' committee, and to see them for their consultations, complaints and supervision.
The property owners' committee shall make regular records of its work and keep them in good condition, recording the meetings of the property owners' congress and the property owners' committee, the negotiations for and the signing of property service contracts, and other important matters in property management.
The property owners' committee shall have a system of information disclosure, making public in good time decisions made by itself and the property owners' congress, and all decisions and important matters in property management such as the selection of the property service enterprise and the property service contract, making public at intervals the incoming and outgoing of the special maintenance fund and other public earnings and expenditures, and receiving property owners for their inquiry about the property management information on file.
Article 24 The property owners' committee shall, two month before the expiration of its term of office, report in writing to the town/township people's government or the sub-district office. The town/township people's government or the sub-district office shall, jointly with the district/county housing administrative department, establish a re-election group within 60 days, which shall organize a meeting of the property owners' congress to elect a new property owners' committee.
The re-election group shall consist of representatives of property owners, the town/township people's government or the sub-district office, the housing office, and the local neighborhood or villagers committee. It shall have an odd number of members and the representatives of property owners in it shall meet the conditions as provided in Clause 2 of Article 19 of these Provisions and shall not be less than half of its total number. The representative of the town/township people's government or the sub-district office shall be its head.
During the period between the establishment of the re-election group and that of a new property owners' committee, the property owners' committee shall not organize meetings of the property owners' congress to decide the following matters:
1. hiring or firing a property service enterprise;
2. major matters such as property maintenance, renewal and renovation except those as prescribed in the management covenant; and
3. other major matters.
Article 25 The outgoing property owners' committee shall, within 10 days as of the date of the establishment of the re-election group, leave under the care of the local housing office the relevant financial papers and vouchers, the detailed name list of property owners, the files such as the summaries of meetings, the official seal, the money and belongings of the property owners' congress in its keeping. In case the property owners' congress or the property owners' committee needs to use the aforementioned according to law, the local housing office shall provide them without delay.
The new property owners' committee shall, within 30 days from the date of its establishment, report the re-election to the town/township people's government or the sub-district office for registration. The local housing office shall, within 10 days after the report of the re-election for registration, hand over the items mentioned in the preceding clause to the new property owners' committee.
In case the outgoing property owners' committee refuses to hand over the items mentioned in Clause 1, the new property owners' committee may ask the town/township people's government or the sub-district office in the locality to urge it to do so, and the public security organ in the locality shall give assistance.
Article 26 Where a member of the property owners' committee loses his/her membership, he/she shall hand over the items mentioned in Clause 1 of Article 25 of these Provisions in his/her keeping to the property owners' committee within 10 days; in case he/she refuses to do so, the property owners' committee may apply to Clause 3 of Article 25 of these Provisions.
Article 27 Where the members of a property owners' committee are less than one half of all its members, or it can not function normally due to other reasons, the property owners' congress shall make a decision to initiate a by-election or re-election ahead of schedule.
Article 28 In case there is any alteration in the name, the coverage area or the membership of the property owners' committee, the rules of procedure of the property owners' congress, or the management covenant, the property owners' committee shall report it to the town/township people's government or the sub-district office for registration within 30 days.
In case a property owners' committee can not continue to exist due to the adjustment of the property management area, the extinction of the houses, or other reasons, it shall go to the town/township people's government or the sub-district office for the cancellation of the registration within 30 days.
Article 29 Where the town/township people's government or the sub-district office has accepted the registration application of a property owners' committee according to Article 21, 25 and 28 of these Provisions, it shall complete the registration and send a duplicate copy to the district/county housing administrative department within 20 days.
Article 30 Where there are two or more buildings in one property management area, property owners' groups may be formed on the basis of a building or a separate numbered section of a building. A property owners' group shall consist of all the property owners of the building or the separate numbered section.
The property owners' group shall perform the following functions and duties:
1. electing representatives of property owners to attend the meetings of the property owners' congress to voice the opinions and wishes of the group;
2. deciding the maintenance, renewal, renovation and repair of the public parts and the public facilities and equipment used by the group; and
3. deciding other matters relating to the group.
The representative of the group elected by the property owners shall preside over the discussions of the group. The property owners' group shall perform the functions and duties as provided in the preceding clause by reference to the rules of procedure of the property owners' congress.
Article 31 The people's conciliation committee established by the neighborhood or villagers committee may work for the resolution of the property management disputes between or among the property owners, the property owners' committee, and the property service enterprise in the locality.
Chapter III Property Management Service
Article 32 The property service enterprise shall obtain the required credentials according to relevant provisions of the State.
The housing administrative department shall supervise and inspect the performance of the property service enterprise according to law.
Article 33 A property service project manager shall obtain the required qualification certificate.
The number of the property management areas and the gross floor area that a property service project manager is allowed to undertake shall be fixed by the municipal housing administrative department.
Article 34 The municipal housing administrative department shall establish credit files for property service enterprises and their project managers on the basis of their performance of property service contracts, complaint handling, and routine inspections.
Article 35 Before selecting and hiring a property service enterprise, the property owners' committee shall draft a selection and hiring plan, which shall cover the requirements for the qualification and performance of the property service enterprise to be selected and hired, property service items and charges, the term of the property service contract, and ways to select and hire.
The property owners' committee shall make public in the property management area the selection and hiring plan voted at the meeting of the property owners' congress.
Article 36 Property service enterprises shall be selected and hired openly by bids on the unified property management bidding platform of this Municipality with the exception of those which the property owners' congresses have decided to rehire, or to select and hire by agreements or other similar means.
The municipal housing administrative department shall be in charge of the building of the unified property management bidding platform of this Municipality to guide and serve the selection and hiring of property service enterprises.
Article 37 The development unit shall, before applying for the pre-sale permit, draw up an interim management covenant and the user's manual as attachments to the house sale contract in reference to the sample texts provided by the municipal housing administrative department.
The interim management covenant shall cover the regulations for the use and maintenance of the property, the obligations of the property owner, and the liabilities for breaching the provisions of the interim management covenant, but shall not contradict relevant laws, rules and regulations, or infringe upon the legitimate rights and interests of the buyer of a property. The interim management covenant shall be reported to the district/county housing administrative department for registration.
The user's manual shall make explicit the plane layout, structure and accessory equipment, provide a detailed drawing of the load-bearing structures, specify the public parts and equipment that must not be appropriated or shifted for private use, and give warnings concerning the safe and proper use of the house.
The house sale contract signed by the development unit and the buyer shall include what has been laid down in the interim property service contract, and the plane layout drawing of the property in the files relating to the permit for its planned construction with the house transference document listing all the supporting facilities and equipment that belong to all the property owners in the property management area.
The development unit shall not transfer to any buyer the ownership of any public part or give him/her the right to use it exclusively.
Article 38 The development unit shall provide independent aboveground property management houses, whose gross floor area for the property service enterprise shall be 0.2% of the total gross floor area of the buildings in the property management area, but not less than 100 square meters; the property owners' committee shall have an area of no less than 30 square meters. In property transference, the development unit shall hand over the property management houses to the property service enterprise first, which shall turn them over to the property owners' congress within 30 days after its establishment.
In examining and approving the permit for a planned construction project, the planning administrative department shall specify the location of the property management houses on the map attached to the permit.
In examining and approving the pre-sale permit of the houses and in handling the initial registration of property ownership, the district/county housing administrative department shall specify the number of the property management houses.
The property management houses shall not be partitioned, transferred, mortgaged, or relocated without authorization.
Article 39 The following supporting facilities and equipment belong to the property owners in a property management area:
1. the property management houses;
2. the house for gatekeepers, the telephone exchange room, the monitoring room, the garbage can and room, the public unwalled ground floor area, and public halls and corridors;
3. the room for non-motor vehicles built as planned in the property management area;
4. the public greenery, roads and grounds in the property management area;
5. the buildings committed by the development unit to all the property owners within house sale contracts or other documents; and
6. other public facilities and equipment which shall go to the property owners according to law.
The supporting facilities and equipment provided in the preceding clause shall be included in the application for the initial registration of the property ownership of the buildings by the development unit, and the real estate registration office shall enter them in the real estate register without issuing a title deed.
Article 40 The property service enterprise shall provide the services in accordance with the terms of the property service contract. The property service contract may include the following jobs:
1. the use, management and maintenance of the public parts, facilities and equipment of the buildings;
2. the maintenance of the public greeneries;
3. the cleaning of the public areas;
4. the keeping of order in the public areas;
5. the management of the parking of vehicles;
6. the taking of measures against prohibited acts in the use of the buildings;
7. the keeping of expenditure accounts for the maintenance, renewal, renovation, and repair of the buildings;
8. the keeping of property management files; and
9. other jobs entrusted by the property owners' congress or property owners.
The property service enterprise may leave a specialized job stipulated in the property service contract in the care of a professional service enterprise, but not all the jobs stipulated therein.
Article 41 The property service enterprise shall, in providing property management services, comply with the following provisions:
1. satisfying the technical standards and norms set by the State and this Municipality;
2. informing property owners and users in good time of warnings concerning the safe and proper use of the buildings;
3. periodically consulting property owners for their opinions and suggestions to improve and perfect its services; and
4. cooperating with the neighborhood or villagers committee in community development.
The property service enterprise shall assist in ensuring security and order in the property management area.
Article 42 The property owners' committee shall, 3 months before the expiration of the property service contract, organize a meeting of the property owners' congress to decide whether to rehire the property service enterprise or to hire a new one, and notify the property service enterprise of the decision in writing. Where the property owners' congress decides to rehire the property service enterprise and this enterprise agrees to be rehired, the property owners' committee and this enterprise shall conclude a new property service contract before the expiration.
Where the property service enterprise decides not to continue its services after the expiration of the property service contract, it shall notify the property owners' committee of its decision in writing 3 months ahead of the expiration.
Where the property owners' congress makes no decision whether to rehire the property service enterprise and the property service enterprise continues to provide services according to the contract after its expiration, the rights and obligations under the contract shall be extended. During the extension period, either party shall notify the other in writing 3 months ahead of schedule if it wants to terminate the contract.
Article 43 The property service enterprise shall keep the following information and documents on file:
1. the public parts management data;
2. the data of such public facilities and equipment as the monitoring systems, lifts, water pumps, electric anti-theft doors, and their operation, maintenance and repair records;
3. the water tank cleaning records and the water tank test reports;
4. the data of housing decoration and renovation management;
5. the detailed name list of property owners;
6. the written agreements for water supply, power supply, garbage removal, telecommunication signal setups signed between itself or the development unit and the utilities concerned; and
7. other important data of its property management services related to the interests of the property owners.
Upon the termination of the property service contract, the property service enterprise shall hand over to the property owner's committee the property management houses and the files specified in Clause 1 of Article 10 and the preceding clause of these Provisions.
Article 44 The property service charges shall be decided on the principles of reasonableness, openness and consistent quality.
The property service charges shall be subject to government guidance and market regulation and be set at the same rates in the same property management area where the same services are provided at the same standards. The specific procedures shall be formulated by the Municipal People's Government separately.
Entrusted by the property owners, the property service enterprise may provide services in addition to those stipulated in the property service contract, and the charges for the additional services shall be decided through negotiation between the two parties.
The property service enterprise shall publicize in writing in the property management area a list of the property management services offered and their respective charges.
Article 45 The property service charges incurred in the month from the effective date of the interim property service contract to the date when a property is handed over to its buyer shall be borne by the development unit.
The property service charges incurred in the months between the month following the month in which a property is handed over to its buyer and the month in which the interim property service contract expires shall be borne by the buyer of the property in accordance with the rates for interim property management services agreed upon in the house sale contract; in the absence of such an agreement, the development unit shall bear the charges.
The property owner shall pay property service charges pursuant to the stipulations of the property service contract; where a property owner fails to pay property service charges before a set date, the property owners' committee shall urge him/her to pay the charges and the property service enterprise may bring a lawsuit to the people's court.
In transferring his/her property, a property owner shall settle the property service charges with the property service enterprise; if the property owner fails to settle the charges , the buyer and the seller shall make an agreement on the settlement and notify the property service enterprise of the agreement.
Article 46 The proceeds from the public parts shall go to the property owners, and be used mostly to supplement the special maintenance fund, or meet the expenditures of the property owners' committee and other needs in property management in accordance with the decisions of the property owners' congress.
Article 47 With the approval of the property owners who possess exclusive areas accounting for more than half of the total gross floor area of buildings and of the property owners who account for more than half of the total number of property owners, the property owners may manage the property by themselves and decide on the following matters:
1. an executive organ for self-management;
2. the coverage, standards, charges, and time limit of the self-management;
3. a plan for hiring professional agencies; and
4. other matters relating to self-management.
The facilities and equipment relating to personal or property safety or requiring special attention such as lifts, fire fighting apparatus or safety systems shall be entrusted to professional agencies for their maintenance and repair.
An intermediary agency may be entrusted by the property owners' congress to handle the financial matters such as management expenses, the special maintenance fund and public earnings, and to open the account of the special maintenance fund according to the delegated financial management contract. The property owners' congress shall publicize the self-management accounts to the property owners every quarter.
The specific scope and the implementation procedures of the property owners' self-management shall be formulated separately by the Municipal People's Government.
Chapter IV Use and Maintenance of Buildings
Article 48 When the property service enterprise accepts a property management project, it shall inspect the houses, supporting facilities and equipment, and relevant grounds, and verify the files before it takes them over.
The property service enterprise shall sign instruments of acceptance and confirmation within 7 days from the date of its inspection and verification.
Article 49 The development unit shall maintain the property in accordance with the guaranteed period and guaranteed scope set by the State. Where the development unit entrusts the maintenance to a property service enterprise, they shall conclude an entrustment agreement.
The development unit shall, before the initial registration of the property ownership of the buildings, deposit the maintenance guarantee fund into a designated account to be used only for the maintenance during the warranty period. The development unit shall make up for the deficiency of the maintenance guarantee fund if the deficiency occurs during the warranty period; the surplus of the maintenance guarantee fund shall be returned to the development unit after the warranty period.
The maintenance guarantee fund shall be deposited in a mass, used only for its fixed purposes and supervised by the government, with its ownership remaining unchanged.
Article 50 The property owner or user shall use the property in accordance with the security provisions and the regulations set by the State and this Municipality, the interim management covenant or the management covenant.
The following acts detrimental to the interests of the public or others shall be prohibited:
1. damaging load-bearing structures;
2. illegally putting up buildings or structures;
3. spoiling the appearance of a building;
4. changing or using public parts of a building without authorization;
5. damaging public facilities and equipment or using or removing them without authorization;
6. storing dangerous goods such as the inflammable, the explosive, the poisonous or the radioactive with disregard of the appropriate standards, or storing or laying down things beyond the load-bearing capacity of a building;
7. discharging poisonous or harmful substances;
8. making noises beyond the provided standards; and
9. other acts prohibited by laws, rules or regulations.
Article 51 The property owner or user shall, in decorating or renovating his/her house, comply with the provisions of the State and this Municipality as well as the interim management covenant or the management covenant.
The property owner or user shall inform the property service enterprise in advance if he/she needs to decorate or renovate the house. The property service enterprise shall inform the property owner or user of the prohibited acts and warnings in the decoration and renovation of the house.
Where a property owner or user decorates or renovates the house, the property service enterprise shall make on-site inspections of the decoration and renovation and the property owner or user shall give his/her cooperation.
Article 52 The property owner or user shall use the property in accordance with its functions as approved by the relevant planning administrative department or as specified in the real estate title deed, and shall not change its usage without authorization.
Where there is a true need to change the usage of a property, the district/county planning administrative department shall, jointly with the district/county housing administrative department, propose the scope and the scheme of the change, and submit them to the district/county people's government for approval after a hearing with the stakeholders.
Where the property owner of one of the flats of a building wants to change its usage in the allowed scope, he/she shall make the change in compliance with relevant laws, regulations and management covenant after he/she has obtained the consent of the stakeholders and the approval of the district/county housing administrative department, and gone through the relevant formalities with other administrative departments according to law.
Article 53 Where a property owner or user is found to use, decorate, or renovate a property against the relevant provisions of the State and this Municipality, the interim management covenant, or the management covenant, the property service enterprise shall try to dissuade or stop him/her on the base of the relevant provisions, the interim management covenant, or the management covenant. If its efforts come to no avail, the property service enterprise shall report to the property owners' committee and relevant administrative departments within 24 hours. The relevant administrative department shall, after receiving the report of the property service enterprise, stop or deal with the illegal act according to law.
Article 54 Suppliers of water, electric power, or gas shall have the responsibility to maintain and repair the household meters together with the related lines, facilities and equipment before such household meters.
Article 55 Whom the planned motor vehicle parking lots and garages in a property management area will go to and whether they will be sold, rented or given away as bonuses shall be decided by the agreement between the related parties. The motor vehicle parking lots on public roads or in other public places shall belong to all property owners.
Where the development unit rents the motor vehicle parking lots in its possession, it shall charge at a rate set by the price control department.
Matters such as the parking, charging and management of motor vehicles in the public areas of all the property owners shall be decided by the property owners' congress. Where the property owners' congress decides the charges for parking motor vehicles, it shall refer to the rate set by the price control department. The charges for parking motor vehicles in the property management area before the establishment of the property owners' congress shall follow the rate set by the price control department.
Where the owner of a motor vehicle requires safekeeping, the owner of the motor vehicle and the property service enterprise shall conclude a separate contract for safekeeping.
No charges shall be imposed on the parking of special motor vehicles on official duties in the property management area such as those of police, or for fire fighting, emergency rescue, first aid, and environmental cleaning.
Article 56 The motor vehicle parking lots in a property management area shall be provided for its property owners and users to use. The development unit shall rent its unsold parking lots to the property owners and users for them to park their motor vehicles. The ownership of the parking lots shall not be transferred to any organization or individual outside the property management area. Where there are surplus parking lots, they may be temporarily rented to an organization or individual outside the property management area.
The parking of motor vehicles in a property management area shall not obstruct the free passage of other vehicles and pedestrians.
Article 57 When new commercial residential houses, public residential houses or non-residential houses of a residential district are sold, the seller and the buyer shall, in accordance with the provisions of the State and this Municipality, put a required sum of money into the special maintenance fund. The special maintenance fund shall be used for no other purposes than the maintenance, renewal and renovation of the public parts of these houses.
Article 58 In case there is no special maintenance fund set up or the remaining sum of the special maintenance fund is less than 30% of the amount raised for the first time, the property owners shall set up a special maintenance fund or raise the special maintenance fund again in time according to relevant provisions of the State and this Municipality, the management covenant, and the decisions made by the property owners' congress.
In setting up the special maintenance fund or raising the special maintenance fund again, the property owners shall pay the required sum of money by installments with the property service enterprise as a collecting agency when it collects the property service charges, or make the payment in one lump sum as decided by the property owners' congress.
In applying for the registration of the transfer of real estate title or of property mortgage, the property owner shall provide the real estate registration office with a certificate of full payment of the special maintenance fund.
Article 59 The special maintenance fund shall be deposited in a bank with a separate account for each building and final settlement by household.
The property service enterprise hired shall publicize the balance sheet of the special maintenance fund and public earnings at least half a year for the scrutiny of the property owners.
Article 60 The use of the special maintenance fund shall be subject to project price audits and procedure examination.
The property owners' committee shall, before the expiration of its term of office, entrust a qualified intermediary agency to audit the financial matters such as the use of the special maintenance fund and public earnings as well as the operation expenditure of the property owners' committee under the guidance of the re-election group.
Article 61 The expenditures for the maintenance, renewal, renovation and repair of the buildings shall be borne according to the following provisions:
1. the expenditures for the exclusive parts shall be borne by the property owners thereof;
2. the expenditures for the partially public parts shall be collectively borne by the property owners thereof and shared in proportion to the respective gross floor area owned by each of them; and
3. the expenditures for the public parts of all the property owners shall be borne by all the property owners in the property management area and shared in proportion to the respective gross floor area owned by each of them.
Where the special maintenance fund is raised in accordance with these Provisions, the expenditures for the maintenance, renewal and renovation of the partially public parts and the public parts of all the property owners shall be listed and paid out of the special maintenance fund. However, where the public parts of the buildings are damaged owing to personal errors, the expenditure shall be borne by the error makers.
Article 62 The maintenance, renewal and renovation of the partially public parts shall be decided by the property owners thereof and be subject to the approval of the property owners who possess exclusive areas accounting for more than 2/3 of the total gross floor area of the partially public parts and by owners who account for more than 2/3 of the total number of owners who possess the partially public parts; decisions on other matters shall be subject to the approval of property owners who possess exclusive areas accounting for more than half of the total gross floor area of the partially public parts and by owners who account for more than half of the total number of owners who possess the partially public parts.
The decisions made pursuant to the preceding clause shall not contravene the decisions made by the property owners' congress on the public parts of all the property owners; and the property owners' committee shall carry out the decisions thereof.
Article 63 The expenditures for the maintenance and repair of the motor vehicle parking lots and garages shall be borne by the owners thereof. The special maintenance fund for the motor vehicle parking lots and garages shall be paid at the same rates set for other special maintenance funds for property management and incorporated into the accounts of the special maintenance funds of the property owners' congress as a separate item.
Article 64 The special maintenance fund shall not be used before the development unit submits the required written report for the establishment of the property owners' congress, and the development unit shall pay for the maintenance, renewal, and renovation of the public parts and public facilities and equipment of the residential areas in case there is any call for them.
If there is the necessity to use the special maintenance fund in the period between the submission of the required written report for the establishment of the property owners' congress by the development unit and the establishment of the property owners' congress, the property service enterprise shall propose a maintenance scheme and put it into execution after the neighborhood or villagers committee in the locality has solicited the opinions of the property owners of all the public parts and these property owners have discussed it and approved it according to law. The maintenance scheme involving only some of public parts may be submitted to the property owners thereof for discussion and approval according to law.
After being appraised by an intermediary agency designated by the municipal housing administrative department, the maintenance bills shall be listed in the special maintenance fund and paid out of it.
Article 65 The property owner shall maintain and repair his/her property and have his/her property tested and appraised as provided at regular intervals.
The property service enterprise shall fulfill its obligations to do maintenance and repair pursuant to the stipulations of the property service contract.
Where a building must undergo maintenance or repair as provided by the State and this Municipality, the property owner or the property service enterprise shall fulfill their obligations in time to do maintenance or repair.
Article 66 In any of the following emergencies, the property service enterprise shall take precautionary measures at once, formulate a maintenance and renewal scheme, and report to the property owners' committee and the housing office in the locality:
1. a lift or a water pump is going wrong;
2. a fire facility is damaged and the fire department has issued a notice of its rectification; or
3. the plaster or furring tile threatens to come away from the outside wall or there is any leak on the roof or the outside wall that is judged serious enough to affect the use and security of the house severely by a qualified appraisal agency.
Where there is the necessity to use the special maintenance fund in the emergencies mentioned in the preceding clause but the property owners' congress has not been established yet, the property service enterprise shall have the expenditure paid out of the special maintenance fund after it submits relevant documents to the district/county housing administrative department for examination and approval and has the expenditure appraised by a qualified intermediary agency; if the property owners' congress has been established, the property service enterprise shall submit relevant documents to the property owners' committee for examination and approval, then apply to the district/county housing administrative department for registration, and have the expenditure appraised by a qualified intermediary agency and paid out of the special maintenance fund.
If any of the emergencies specified in Clause 1 of this Article occurs and the property service enterprise fails to carry out maintenance, renewal or renovation as provided, the district/county housing administrative department may do so in its place and the expenditure shall be paid out of the special maintenance fund.
Article 67 Where a property is chronically insecure in structure, or is appraised as dangerous to public interests, or the legitimate rights and interests of others, the responsible party shall do timely maintenance and repair and the property owners related to the work shall give their cooperation. Where the responsible party fails or refuses to do maintenance and repair, the property service enterprise may undertake the work or take emergency precautionary measures in his/her place with the approval of the property owners' congress or on the base of the stipulations of the management covenant and the costs shall be borne by the responsible party.
Article 68 The outside walls of the buildings in the property management area shall be kept in good condition, cleaned or painted at regular intervals. The specific procedures shall be formulated separately by the Municipal People's Government.
Article 69 The property owners or users shall give their cooperation in the maintenance, repair, renewal or renovation of their public parts.
Where the supplier of water, electric power, gas,or the information, the post, the environmental sanitation, or the civil defense sector needs to carry out operations in the property management area, the property service enterprise shall give its cooperation; if the operation needs to be carried out in a exclusive area, the property owners or users involved shall give their cooperation.
The above suppliers and sectors shall, according to law, pay for the damage to the public parts or exclusive parts and restore them to their former conditions if their work causes any to them.
Chapter V Legal Liabilities
Article 70 Where existent laws, administrative regulations or other regulations of this Municipality have provided for the punishment of violations of these Provisions, their provisions shall be complied with in handling the cases of violation.
Article 71 The property owner or user of a property violating the management covenant shall bear corresponding civil liabilities for the violation. The property owners' committee shall try to dissuade or stop offences against the management covenant; in case such efforts prove unavailing, it may make them known to the public in the property management area and the relevant property owners or users may bring a civil lawsuit against the offenders in the people's court according to law.
Article 72 Where a property service enterprise fails to continue to meet the fixed conditions for its grade, the housing administrative department shall order it to make rectifications before a set date; if it fails to do so before the set date, its qualification grade shall be re-appraised. The case of a property service enterprise of Grade A shall be forwarded to the construction administration department under the State Council to handle.
Article 73 Where a development unit fails to follow Clause 1 of Article 13 of these provisions to report in writing to the town/township people's government or the sub-district office in the locality about the establishment of the property owners' congress in a property management area, or to provide the necessary relevant files as provided, the district/county housing administrative department shall order it to make corrections before a set date, and may impose on it a fine of not less than 10,000 yuan but not more than 100,000 yuan.
Article 74 Where a property service enterprise fails to follow Clause 1 of Article 33 of these Provisions to employ a property service project manager with the required qualification certificate, the district/county housing administrative department shall order it to make rectifications before a set date, and may impose on it a fine of not less than 50,000 yuan but not more than 200,000 yuan.
Article 75 Where a development unit fails to follow Clause 2 of Article 49 of these Provisions to deposit the maintenance guarantee fund into a designated account, the district/county housing administrative department shall order it to make corrections before a set date; if the development unit does not do so before the set date, the district/county housing administrative department shall impose on it a fine of not less than 10,000 yuan but not more than 50,000 yuan with an additional overdue fine of 0.03 per cent of the maintenance guarantee fund per day, starting from the set date.
Article 76 Where a property owner or user damages load-bearing structures of a building in violation of Item 1, Clause 2 of Article 50 of theses Provisions, the district/county housing administrative department shall order him/her to make rectifications at once and restore the building to the original state, and may impose on him/her a fine of not less than 10,000 yuan but not more than 100,000 yuan; in a serious case, a fine of not less than 100,000 yuan but not more than 200,000 yuan may be imposed.
Article 77 Where a property owner or user puts up illegally buildings or structures in violation of Item 2, Clause 2 of Article 50 of theses Provisions, the housing administrative department, the city management and administration execution department, and the planning administrative department shall, according to their respective functions and duties, order him/her to demolish them before a set date, and may impose on him/her a fine of not less than 10,000 yuan but not more than 100,000 yuan; in case the property owner or user fails to demolish them before the set date, the housing administrative department, or the city management and administration execution department, or the planning administrative department may make an application to the district/county people's government for compulsory removal.
When the illegal putting up of buildings or structures by a property owner or user is ongoing, the housing administrative department, the city management and administration execution department, and the planning administrative department shall, according to their respective functions and duties, order him/her to stop at once, and may temporarily detain the construction tools and materials; in case there is no rectification on the part of the property owner or user, the housing administrative department, the city management and administration execution department, or the planning administrative department shall take charge of the rectification in his/her place, and the costs thereby incurred shall be borne by the property owner or user.
Article 78 Where a property owner or user damages, in violation of Items 3, 4 and 5, Clause 2 of Article 50 of theses Provisions, the appearance of a building, changes or uses the public parts of a building without authorization, or damages, uses or removes the public facilities and equipment without authorization, the district/county housing administrative department shall order him/her to make rectifications and restore them to their original state, and may impose on him/her a fine of not less than 1,000 yuan but not more than 10,000 yuan; in a serious case, a fine of not less than10,000 yuan but not more than 100,000 yuan may be imposed.
Article 79 Where a property owner or user changes, in violation of Article 52 of these Provisions, the usage of a property without authorization, the district/county housing administrative department shall order him/her to make rectifications before a set date and restore them to their original state, and may impose on him/her a fine of not less than 10,000 yuan but not more than 50,000 yuan.
Article 80 Where a property service enterprise fails to follow Article 53 of these Provisions to try to dissuade or stop the illegal acts of a property owner or user, or to report them to the relevant administrative department within the prescribed time limit, the district/county housing administrative department shall order it to make corrections, and may impose on it a fine of not less than 1,000 yuan but not more than 10,000 yuan.
Article 81 Where a development unit fails to follow Clause 1 of Article 56 of these Provisions to provide motor vehicle parking lots for the property owners and users in the property management area to use, the district/county housing administrative department shall order it to make corrections and impose on it a fine of not less than 10,000 yuan but not more than 100,000 yuan.
Article 82 Where the seller of a property fails to follow Article 57 of these Provisions to pay the special maintenance fund as provided, the housing administrative department shall order him/her to pay it before a set date, and may impose on him/her a fine of less than one time of the special maintenance fund.
Where the property owners fail to follow Clause 1 of Article 58 of these Provisions to set up a special maintenance fund or raise the special maintenance fund again as provided, the housing administrative department shall order them to make corrections before a set date.
Article 83 Those who have objection to a specific administrative act of the housing administrative department or other relevant administrative departments may apply for administrative reconsideration or bring an administrative lawsuit according to the Law of the People's Republic of China on Administrative Reconsideration or the Administrative Litigation Law of the People's Republic of China.
Where those who refuse to follow a specific administrative act of an administrative department fail to apply for administrative reconsideration, or bring an administrative lawsuit before the set date, the administrative department may apply to the people's court for enforcement.
Article 84 The staff members of the housing administrative departments, town/township people's governments, sub-district offices, housing offices, or other relevant administrative departments who are found to have violated these Provisions by any of the following offences shall be subject to administrative sanctions by their respective organizations or by the higher authorities, or even to criminal penalties when their offences constitute crimes:
1. issuing an administrative license or imposing an administrative penalty against the law;
2. failing in duties of supervision or inspection as provided in these Provisions;
3. failing to make a timely investigation of, or covering up, or conniving at an illegal act to cause any consequence; or
4. other negligence of duty, abuse of power, or malpractice for personal gains.
Chapter VI Supplementary Provisions
Article 85 Some technical terms used in these Provisions are defined as follows:
1. the term “exclusive parts” refers to the spaces in buildings that are independent of each other in structure and use, used and disposed of at the discretion of a single property owner.
2. the term “partially public parts” refers to the spaces, facilities and equipment, and grounds that are used and managed by some property owners.
3. the term “public parts of all the property owners” refers to the spaces, facilities and equipment, and grounds that are used and managed by all the property owners.
Article 86 The municipal housing administrative department shall formulate the sample texts of the interim management covenant, the management covenant, the voting procedures for the inaugural meeting of the property owners' congress, the rules of procedure of the property owners' congress, the selection process for candidates for the property owners' committee, the procedures for electing the property owners' committee, and the property service contract.
Article 87 The management of non-residential property shall be carried out by reference to these Provisions.
Article 88 These Provisions shall be effective as of April 1, 2011.