Regulations for Property Management (Revised in 2007)

Regulations on Property Management (Revised in 2007)

Order of the State Council [2007] No. 504

August 26, 2007

(Released by Order No. 379 of the State Council of the People's Republic of China on June 8, 2003 and amended on the basis of the Decision of the State Council on the Revision of the Regulations on Property Management on August 26, 2007)

Chapter I General Provisions

Article 1 These Regulations are formulated with the goal of normalizing property management activities, safeguarding the legitimate rights and interests of property owners and property service enterprises, and improving the living and working environment of the people at large.

Article 2 For the purposes of these Regulations, "property management" refers to activities such as the repair, maintenance, and management of buildings, connected facilities, and grounds and the preservation of public sanitation and order within the relevant property management area by property owners and property service enterprises according to the stipulations of a property services contract where the owner has hired the property service enterprise for this purpose.

Article 3 The state advocates open, fair, and just market competition be employed by property owners when selecting property service enterprises.

Article 4 The state encourages the use of new technology and new methods, allowing the advancement of technology to improve the quality of property management and relevant services.

Article 5 The construction administration department of the State Council shall be responsible for the regulatory work relevant to property management activities nationwide.
The real estate administration departments of local people's governments above the county level shall be responsible for the regulatory work relevant to property management activities within their administrative jurisdiction.

Chapter II Property Owners and the Assembly of Property Owners

Article 6 Property owners are persons who hold the ownership title of a property.
The property owner enjoys the following rights with regards to property management activities:
1. To receive services from property service enterprises pursuant to the stipulations of property service contracts;
2. To propose a convening of the assembly of property owners and make suggestions on issues relevant to property management;
3. To propose the drafting of or revision to management regulations or rules of procedure for the assembly of property owners;
4. To attend meetings of the assembly of property owners and to exercise voting rights;
5. To elect property owners to the committee of property owners, and to be elected to said body;
6. To supervise the work of the committee of property owners;
7. To supervise the fulfillment of the property service contract by the property service enterprise;
8. To supervise and be fully aware of the use of the property's common areas, common facilities, and grounds;
9. To supervise the management and use of the dedicated funds for the maintenance of common areas, common facilities, and grounds (hereinafter the "maintenance funds"; and
10. Other rights stipulated in relevant laws and regulations.

Article 7 The property owner shall perform the following duties with regards to property management activities:
1. Abide by the management regulations and rules of procedure for the assembly of property owners;
2. Abide by rules and regulations relevant to the use of common areas and common facilities and the preservation of public sanitation and order.
3. Execute the decisions of the assembly of property owners as well as its authorized committee of property owners;
4. Pay into the maintenance fund pursuant to relevant national regulations;
5. Pay the property service fees on time; and
6. Other duties stipulated by relevant laws and regulations.

Article 8 All property owners within the property management area shall form the assembly of property owners.
The assembly of property owners should represent and uphold the legitimate rights and interests of all property owners within the property management areas with regards to property management activities.

Article 9 A property management area shall establish a single assembly of property owners.
The partition of property management areas should take into account factors such as the common equipment and facilities, the size of the buildings, and community development. Specific procedures should be formulated by provincial, regional, or municipal governments.

Article 10 The property owners within a single property management area shall, under the direction of town or township people's government or the real estate administration department of the country or district people's government in the locality of relevant real estate the or street office thereof, establish an assembly of property owners and elect a committee of property owners. However where there is only one property owner or where there are relatively few property owners and they are all in agreement, the property owners(s) may choose not to establish an assembly of property owners, in which case the functions assigned to both the assembly of property owners and committee of property owners shall be carried out by said property owner(s).

Article 11 The following matters should be decided jointly by the property owners:
1. The formulation and revision of the rules of procedure for the assembly of property owners;
2. The formulation and revision of the management regulations;
3. The election or replacement of members of the committee of property owners;
4. The hiring or dismissal of property service enterprises;
5. The collection and use of maintenance funds;
6. The renovation or reconstruction of buildings and attached facilities; and
7. Other important matters relevant to common management rights.

Article 12 The assembly of property owners may either conduct collective deliberation or solicit opinions from property owners in writing, however it should have the participation of over 50% of the relevant property owners, with at least 50% of the total private building area represented.
Property owners may participate in the assembly of property owners by proxy.
When the assembly of property owners is deciding on those matters stipulated in Article 11, Items 5 and 6 of these Regulations, it should have the participation of over two thirds of the relevant property owners, with at least two thirds of the total private building area represented. When deciding other matters stipulated in Article 11, it should have the participation of over 50% of the relevant property owners, with at least 50% of the total private building area represented.
Decisions of the assembly of property owners and the committee of property owners are binding on property owners.
Where a decision of the assembly of property owners or the committee of property owners harms the legitimate rights and interest of a property owner, said property owner may request that the people's court nullify the decision.

Article 13 The assembly of property owners shall have regular as well as unscheduled meetings.
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