Provisions of the Shanghai Municipality on the Management of Residential Property

Provisions of the Shanghai Municipality on the Management of Residential Property

Announcement of the Standing Committee of the Shanghai Municipal People's Congress [2004] No. 40

August 19, 2004

The Provisions of the Shanghai Municipality on the Management of Residential Property, adopted at the 14th Session of the Standing Committee of the 12th Shanghai Municipal People's Congress on August 19, 2004, is hereby promulgated and shall come into force as of November 1, 2004.

Appendix: Provisions of the Shanghai Municipality on the Management of Residential Property

Chapter I General Provisions

Article 1 In order to regulate the activities of residential property management, protect the lawful rights and interests of the proprietors and property management enterprises, these Provisions are formulated in accordance with the Regulations on Property Management formulated by the State Council and other the relevant laws and administrative regulations in light of the actual situations of this municipality.

Article 2 These Provisions shall apply to the management and use of the residential property as well as the supervision on the management in this municipality.

Article 3 The residential property management (hereinafter referred to as the property management) as mentioned in these Provisions refers to the activities that a property management enterprise, which is employed by the proprietors living in a residential area, repairs, maintains and manages the houses, supporting facilities and equipment and relevant grounds, and maintains the environmental health and order of relevant areas in accordance with the property management service contract signed by and between it and the proprietors.
The proprietor as mentioned in these Provisions refers to the person who owns the house.
The user as mentioned in these Provisions refers to the lessee of the house and person who actually uses the house.
The property management enterprise as mentioned in these Provisions refers to the one which has the status of an independent legal person and corresponding qualification, and is able to provide property management services.

Article 4 Shanghai Municipal Housing and Land Administration Bureau (hereinafter referred to as the Municipal Housing and Land Administrate Bureau) shall be responsible for the supervision of the property management in this municipality; the real estate management departments at district (county) level shall be responsible for the property management within their respective administration regions.
Relevant administration departments shall provide cooperation in the implementation of these Provisions in accordance with their respective duties.
Sub-district offices (township people's governments) shall be responsible for coordinating the mutual relations between the property management and community construction.

Chapter II Proprietors and Proprietors' Meeting

Article 5 The residential area newly constructed, including the one which is constructed in phases or developed and constructed by more than two units, of which the supporting facilities and equipment are for shared use, shall be put into one property management area. But, where the residential area has been divided into several natural blocks or gated communities, the area may be divided into several property management areas.
The construction unit, when applying for the Planning Permit for Residential Construction Projects, shall raise the requirements to divide the property management area to the real estate management department at district (county) level simultaneously. The real estate management department at district (county) level shall divide the property management area in accordance with Item 1 of this Article, and mark such divided property management areas in the cadastral plan and the real estate register.
Where the property management area has not been divided or needs adjusting, the property management department at district (county) level shall divide the property management area in company with the local sub-district office (township people's government) in accordance with Item 1 of this Article in light of the distribution of the local neighborhood (villagers') committees, and shall mark the divided property management areas in the cadastral plan and real estate register.

Article 6 The proprietors shall, in the process of property management, have the right, in addition to the rights as provided by the Regulations on Property Management formulated by the State Council, to propose to convene the first proprietors' meeting, elect the representatives of proprietors, and shall also enjoy the right to be elected to be the representative of proprietors.
The proprietors shall, in the process of property management, perform the obligations as provided by the Regulations on Property Management formulated by the State Council.
The proprietors shall provide their contact addresses and methods to the proprietors' committee, through the construction unit or property management enterprise, or directly.

Article 7 The proprietors' meeting is constituted of all the proprietors within a property management area.
The first meeting shall be convened by the proprietors to establish the proprietors' meeting after the houses with more than 50% of the building area of all the houses within a property area have been sold and put into use, or the first set of house within the property management area has been sold and put into use for at least two years.

Article 8 Where the property management area meets any of the conditions as stipulated in Item 2 of Article 7 of these Provisions, the construction unit shall report in written form to and provide the materials such as the list of proprietors, building area of property, time when the property was sold and put into use and the list of special maintenance funds which have been raised to the real estate management department at district (county) level; where the construction unit fails to submit the written report in time, the proprietors may submit a written requirement to establish the proprietors' meeting to the real estate management department at district (county) level.
The real estate management department at district (county) level shall, after receiving the written report from the construction unit or the written requirement from the proprietors, organize, in company with the local sub-district office (township people's government), the proprietors to recommend the members of the organizing committee of the proprietors' meeting (hereinafter referred to as the organizing committee).
The organizing committee is constituted of the representatives of proprietors, and the names of its members shall, within seven days after its establishment, be notified publicly in written form within the property management area.
The first proprietors' meeting shall be convened, within 30 days after the organizing committee is set up, by the proprietors under the guidance of the real estate management department at district (county) level and the sub-district office (township people's government).

Article 9 The voting right of a proprietor in the first proprietors' meeting shall be determined according to the quantity of his houses, i.e. each set of house may be converted to one vote. The voting right of a proprietor who owns the non-residential property in the residential area shall be determined according to the building area of the non-residential property owned by him, i.e. each one hundred square meters of building area of such non-residential property may be converted to one vote; where the building area of such non-residential property is less than one hundred square meters and the proprietor has a separate Real Estate Ownership Certificate of such non-residential property, the voting right of the proprietor may be determined by merging the building area of his non-residential property with that of other proprietors, i.e. each one hundred square meters of such merged building area may be converted to one vote. The votes held by a single proprietor in the first proprietors' meeting shall not exceed 30% of the total votes.
In the rules of procedure adopted at the first proprietors' meeting, the issues such as the methods for discussions, voting procedures, methods for determining the voting right of proprietors, establishment of the proprietors' group, composition of the proprietors' committee and tenure of members of the proprietors' committee shall be specified.

Article 10 The proprietors' meeting, in addition to performing its duties as provided by the Regulations on Property Management formulated by the State Council, may have the right to decide on the matters relating to the expenditures of the proprietors' committee and revoke the improper decision made by the proprietors' group.

Article 11 The first proprietors' meeting may be convened either in the form of group discussion or though asking for written opinions.
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