Order of the State Council on Issuing the Regulations on Realty Management

Order of the State Council on Issuing the Regulations on Realty Management

Order of the State Council [2003] No.379

June 8, 2003

The Regulations on Realty Management, which was adopted at the 9th executive meeting of the State Council on May 28, 2003, is hereby promulgated and shall come into force on September 1, 2003.

Wen Jiabao, Premier of the State Council

Appendix:Regulations on Realty Management

Chapter I General Provisions

Article 1 The Regulations are formulated in order to regulate the realty management activities, to safeguard the legitimate rights and interests of the owners and the realty management enterprises, and to improve the living and working environment of the people.

Article 2 For the purpose of the Regulations, "realty management" shall refer to the activities of maintenance, conservation, and management of the houses and supporting facilities, as well as the relevant sites, and protection of the environmental sanitation and order within the relevant areas carried out by the owners and the realty management enterprise selected by the owners, pursuant to the stipulations of the realty service contract.

Article 3 The state advocates that owners choose realty management enterprises through open, fair and just market competition.

Article 4 The state encourages realty management enterprises to apply new technology and new methods and to improve the management and service level through the advance of science and technology.

Article 5 The administrative department of construction under the State Council shall be in charge of the supervision and administration of the realty management activities all over the country.
The administrative departments of construction of the local people's governments at the county level and above shall be in charge of the supervision and administration of the realty management activities within their respective administrative areas.

Chapter II Owners and Owners' Congress

Article 6 The title holder of a house is an owner.
An owner is entitled to the following rights in the realty management activities:
1.Receiving services provided by the realty management enterprise pursuant to the stipulations of the realty service contract;
2.Proposing to hold the session of the owners' congress, and presenting suggestions in respect of the matters relating to realty management;
3.Presenting suggestions on the formulation and modification of the owners' convention and the rules regarding the owners' congress;
4.Attending the sessions of the owners' congress and exercising the voting right;
5.Electing the members of the owners' committee and being entitled to be elected;
6.Supervising the work of the owners' committee;
7.Supervising the performance of the realty service contract by the realty management enterprise;
8.Having the right to know and the right to supervise the use of the common parts, common facilities and relevant sites of the realty;
9.Supervising the management and use of the special maintenance fund of the common parts and common facilities of the realty (hereinafter referred to as special maintenance fund);
10.Other rights provided for by laws and regulations.

Article 7 An owner shall perform the following obligations in the realty management activities:
1.Abiding by the owners' convention and the rules of procedures of the owners' congress;
2.Abiding by the rules in respect of the use of the common parts and common facilities of the realty and the maintenance of the public order and environmental sanitation within the realty management area;
3.Executing the decisions of the owners' congress and the decisions made by the owners' committee upon authorization of the owners' congress;
4.Paying special maintenance funds pursuant to the relevant provisions of the state;
5.Paying realty service fees on time;
6.Other obligations provided for by laws and regulations.

Article 8 The owners' congress shall consist of all the owners within the realty management area.
The owners' congress shall represent and safeguard the legitimate rights and interests of all the owners within the realty management area in the realty management activities.

Article 9 One owners' congress shall be established in one realty management area.
The elements, such as common facilities, building scale, and community construction of the realty etc. shall be taken into consideration in the division of realty management areas. The specific measures shall be formulated by the provinces, autonomous regions, and municipalities directly under the Central Government.

Article 10 The owners in a same realty management area shall, under the guidance of the administrative department of real estate of the people's government of the district or county where the realty is located, form the owners' congress and elect the owners' committee. However, where there is only one owner, or where there are few owners and they all agree not to form an owners' congress, the owner(s) shall (jointly) perform the duties of the owners' congress and the owners' committee.
The voting right an owner enjoys in the first session of the owners' congress shall be determined according to the building area and number of houses owned by that owner etc. The specific measures shall be formulated by the provinces, autonomous regions, and municipalities directly under the Central Government.

Article 11 The owners' congress shall perform the following duties:
1.Formulating and modifying the owners' convention and the rules of the owners' congress;
2.Electing and replacing the members of the owners' committee, and supervising the work of the owners' committee;
3.Selecting and dismissing the realty management enterprise;
4.Deciding the scheme on the use and future raising of special maintenance fund, and supervising the implementation thereof;
5.Formulating and modifying the systems and rules in respect of the use of the common parts and common facilities of the realty, and the maintenance of the public order and environmental sanitation within the realty management area;
6.Other duties relating to realty management as provided for by laws and regulations or by the rules of procedures of the owners' congress.

Article 12 The sessions of the owners' congress may be held by way of either collective discussion or written inquiries; however, the session shall have the presence of the owners holding more than half of the voting rights within the realty management area.
An owner may entrust an agent to participate in the session of the owners' congress.
A decision made by the owners' congress must be subject to the approval by more than half of the voting rights held by the owners present at the session. The decision made by the owners' congress on the formulation and modification of the owners' convention and the rules of the owners' congress, on selection and dismissal of realty management enterprises, or on the scheme of use and future raising of special maintenance funds, must be subject to the approval by two thirds of the voting rights held by all the owners within the realty management area.
The decision of the owners' congress shall be binding upon all the owners within the realty management area.

Article 13 The session of the owners' congress is divided into regular session and temporary session.
The regular session of the owners' congress shall be held pursuant to the rules of procedure of the owners' congress.
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