Regulations on Property Management (Revised in 2016)

Order of the State Council No.666

February 6, 2016

(Promulgated by Order No. 379 of the State Council of the People's Republic of China on June 8, 2003; revised for the first time according to the Decision of the State Council on the Revision of the Regulations on Property Management on August 26, 2007; and revised for the second time in accordance with the Decision of the State Council on Revising Certain Administrative Regulations on February 6, 2016)

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.
The regular meetings of the assembly of property owners shall be convened pursuant to the rules of procedure for the assembly of property owners. An unscheduled meeting of the assembly of property owners may be convened by the committee of property holders if requested by more than 20% of the property owners.

Article 14 Property owners shall be informed that a meeting of the assembly of property owner is to occur 15 days prior to the meeting.
For meetings of the assembly of property holders within residential areas, the corresponding residential committee shall be informed of the meeting concurrently.
The committee of property owners shall prepare minutes taken at meetings of the assembly of property owners.

Article 15 As executors of the decisions of the assembly of the property owners, the committee of property owners shall perform the following functions:
1. Convening the assembly of property owners and reporting on the status of property management;
2. Signing, on behalf of the assembly of property owners, the property service contract with the property service enterprise selected by the assembly;
3. Making timely effort to find out the opinions and suggestions of property owners and property users, overseeing and assisting the property service enterprise in performing the property services contract;
4. The implementation of the management regulations; and
5. Other functions assigned by the assembly of property owners.

Article 16 The committee of property owners shall, within 30 days of being elected, file their establishment with the town or township people's government or the real estate administration department of the district or county people's government or the street office thereof in the locality of the real estate in question.
The committee of property owners shall consist of property owners with enthusiasm for public causes, a strong sense of responsibility, and a certain amount of organizational ability.
The director and deputy director of the committee of property owners shall be elected from among its members.

Article 17 The management regulations should stipulate to matters such as the use, maintenance, and management of relevant property, the common interests of property owners, the duties of property owners, and the liabilities relevant to violations of the management regulations.
The management regulations should respect public morality; they shall not violate laws and regulations, nor harm the public interest.
The management regulations are binding on the property owners as a whole.

Article 18 The rules of procedure for the assembly of property owners shall stipulate to the means of discussion, the procedures for voting, and the composition of the committee of property owners as well as the term of office for members.

Article 19 The assembly of property owners and the committee of property owners shall lawfully perform their functions; they shall not make decisions that are irrelevant to property management nor engage in activities irrelevant to property management.
Where an assembly of property owners or a committee of property owners makes a decision that violates relevant laws or regulations, the town or township people's government or the real estate administration department of the district or county people's government (or the street office thereof) in the locality of the real estate in question shall order rectification or nullify the decision, informing the property owners of their action.

Article 20 The assembly of property owners and the committee of property owners shall cooperate with the public security authorities and the residents committee, working together properly to maintain law and order within the property management area.
Within a property management area, the assembly of property owners and the committee of property owners shall actively cooperate with the corresponding residents committee in their performance of their self-governing administrative functions, supporting the residents in their work and accepting their direction and supervision.
The corresponding residential committee shall be informed of the decisions of the assembly of property owners or the committee of property owners within residential communities, and their suggestions solicited.

Chapter III Provisional Property Management

Article 21 Where the constructing entity hires a property service enterprise prior to hiring by the property owners or the assembly of property, they should sign a written provisional property service contract.

Article 22 Before the constructing entity beings to sell property, they shall formulate provisional management regulations, lawfully stipulating to the use, maintenance, and management of relevant property, the common interests of property owners, the duties of property owners, and the liabilities relevant to violations of the management regulations.
The provisional management regulations formulated by the constructing entity shall not harm the legitimate rights and interests of the property buyers.

Article 23 The constructing entity shall show and explain the provisional management regulations to property buyers before the property is sold.
When signing the sales contract with the constructing entity, property owners shall provide a written pledge to abide by the provisional management regulations.

Article 24 The state encourages the constructing entity to select a qualified property service enterprise by means of bidding and according to the principle of maintaining a separation between real estate development and property management.
Entities that construct residential property shall select a qualified property service enterprise by means of bidding; where there are less than 3 bidders or where the scale of the residential construction is relatively small, the agreement method may be used to hire a qualified property service enterprise with the approval of the real estate administration department of the district or county people's government in the locality of the real estate in question.

Article 25 The sales contract signed between constructing entities and property buyers shall include the content of the provisional property service contract.

Article 26 The provisional service contract may include an expiration date. However, if a contract signed between the committee of property owners and a property service enterprise goes into force before the expiration date, the provisional property services contract shall terminate by default.

Article 27 Property owners lawfully enjoy the right to ownership and use of the common area and common facilities; the constructing entity shall not make relevant arrangements without consulting them.

Article 28 When the property service enterprise undertakes the management of the property, it shall carry out an inspection of the common area and common facilities.

Article 29 When carrying out procedures for the transfer of property management, the constructing entity shall provide the following materials to the property service enterprise:
1. Record drawings including the general floor plan, the final building, structural, and facilities plans for each separate building, engineering plans for included equipment, underground pipes, etc.
2. Technical material relevant to the installation, use, and maintenance of equipment and facilities;
3. Documents related to property servicing warranties and instructions for use; and
4. Other materials required for property management.
The property service enterprise shall return all the aforementioned materials to the committee of property owners when the provisional services contract terminates.

Article 30 The constructing entity shall include within the property management area a location for conducting necessary property management services (hereinafter the property management office).

Article 31 The constructing entity shall take responsibility for property maintenance within the time and scope stipulated by relevant national provisions.

Chapter IV Property Management Services

Article 32 Enterprises engaging in property management activities shall have independent legal person status.
The state shall implement a licensing system for enterprises which engage in property management activities. Concrete procedures shall be formulated by the competent construction administration department of the State Council.

Article 33 Each property management area shall have its property management services provided by a single property management enterprise.

Article 34 The committee of property owners shall sign a written property service contract with property service enterprise hired by the assembly of property owners.
The property service contract shall stipulate to the items of property management, the quality of service, the cost of service, the rights and obligations of each party, the management and use of the maintenance fund, the location of the property management services office, the term of the contract, breach liabilities and other relevant information.

Article 35 The property service enterprise shall provide services that correspond to the stipulations of the property service contract.
The property service enterprise shall be held legally liable for harm to the security of property owners or their property that results from a failure on the part of the property service enterprise to perform their duties pursuant to the property service contract.

Article 36 When a property service enterprise undertakes property management, they shall go through inspection and transfer procedures with the committee of property owners.
The committee of property owners shall provide the property service enterprise with the materials stipulated in Article 29 of these Regulations.

Article 37 The ownership rights of the property management office shall be held by the property owners. The property service enterprise shall not use the building for any other use without the prior consent of the assembly of property owners.

Article 38 When the property services contract expires, the property service enterprise shall return the property management office and the materials stipulated in the Article 29, Paragraph 1 to the committee of property owners.
When the property services contract terminates and the assembly of property holders hires a new property service enterprise, the relevant property service enterprises shall do the required handover work.

Article 39 The property service enterprise may employ professional service enterprises for the specialized services required within their property management area, however they shall not entrust all property management within s property management area to others.

Article 40 Property service fees shall be stipulated in the property services contract pursuant to the procedures for property services fees formulated by the competent price administration department of the State Council conjointly with the competent construction administration department of the State Council; the fixing of fess shall be reasonable, open, with a correspondence between the level of fees and the level of service and distinctions made between different type of properties and their respective features.

Article 41 Property owners shall pay the property service fees as per the stipulations of the property services contract. Where the property owner and the property user have agreed that the property user shall pay the property service fees, the property owner shall carry joint liability to provide payment.
For properties that were not sold following the completion of construction or which have not yet been transferred to the buyer, the property service fees shall be paid by the constructing entity.

Article 42 The competent price administration department of the State Council, in conjunction with the competent construction administration department of the State Council, shall strengthen supervision of property service fees.

Article 43 Property service enterprises may, at the request of the property owners, provide services outside those stipulated in the property services contract, with the compensation for such services determined by agreement between the two parties.

Article 44 Fees for water, electricity, gas, heat, communications, and cable television within a property management area shall be collected from the end user by relevant providers.
Where property service enterprises are entrusted to collect fees on behalf of relevant providers, they shall not charge a handling fee or any other additional fees.

Article 45 For conduct within the property management region that violates laws or regulations relevant to public security, environmental protection, fit out, renovation, or use, the property service enterprise shall put a halt to relevant activities and promptly report the situation to the competent administrative department.
After receiving the report from the property service enterprises, the competent administrative department shall put a stop to the offending conduct and take appropriate punitive measures.

Article 46 The property services shall assist with work relevant to safety and security within their property management area. When there is an incident, the property service enterprise shall take emergency measures while immediately reporting the incident to the competent administrative department and assisting them with any relief efforts.
When employing security personnel, property service enterprises shall observe relevant national regulations. When the security personnel are upholding public order within the property management area, they shall perform their functions and shall not harm the legitimate rights and interests of citizens.

Article 47 The rights and obligations of property users with regards to property management activities shall be determined jointly by the property owner and the property user, however they shall not violate relevant provisions of laws, regulations, or the management regulations of the property management area.
If the property user violates provisions of these Regulations or of the management regulations, the property owner may be held jointly liable.

Article 48 The competent real estate administration department of the local people's government above the county level shall promptly handle complaints filed by property owners, committees of property owners, property users, and property service enterprises relevant to property management activities.

Chapter V The Use and Maintenance of Property

Article 49 The portion of the property management area which have been designated by the construction plan as common buildings or common facilities shall not be used for other purposes.
Where property owners lawfully require that common buildings or facilities be used for other purposes, they shall inform the property service enterprise after the relevant formalities have been completed; where the property service enterprise requires that common buildings or facilities be used for other purposes, they shall file a request with the assembly of property owners for deliberation; if approved, the property owners shall carry out relevant formalities pursuant to law.

Article 50 Property owners and property service enterprises shall not, without permission, occupy or excavate the roads or grounds within their property management area, and shall not harm the general interests of the property owners.
If, for the purposes of property maintenance or other public interest, the property owner needs to temporarily occupy or excavate the roads or grounds within a property management area, they shall solicit the consent of the committee of property owners and the property service enterprise; if the property service enterprise needs to temporarily occupy or excavate the roads or grounds within a property management area, they shall solicit the consent of the committee of property owners.
When property owners or property service enterprise temporarily occupy or excavate roads or grounds within their property management areas, they shall return the location to its original state within the agreed time limit.

Article 51 Providers of water, electricity, gas, heat, communications, and cable television shall be liable for repairing and maintaining the pipes, wires, and equipment within their property management areas.
Where providers as mentioned in the preceding paragraph need to temporarily occupy or excavate roads or grounds for the purposes of repair or maintenance, the area shall be returned to its original state in a timely fashion.

Article 52 Where a property owner needs to fit out or renovate their property, they shall notify the property service enterprise in advance.
The property service enterprise shall inform the property owner of any prohibited activities relevant to fit out or renovation as well as any other relevant items of which they should be aware.

Article 53 Owners of residential property, non-residential property within residential communities, or non-residential property structurally attached to individual residential homes shall pay into the maintenance fund pursuant to relevant national regulations.
The maintenance fund is owned by the property owners and is to be used specifically for the maintenance and upgrade of common areas and facilities after the relevant servicing warranties have expired, and for no other purpose.
The procedures for the collection, use, and management of the maintenance fund shall be formulated by the construction administration department of the State Council jointly with the financial department of the State Council.

Article 54 Where the common areas and facilities of a property management area are used for business activities by property owners, consent must first be solicited from other relevant property owners, the assembly of property owners, and the property service enterprise before the relevant formalities are completed pursuant to regulations. Profits stemming from the activities should be added to the maintenance fund or for other purposes as decided by the assembly of property owners.

Article 55 Where there is a hidden safety danger relevant to a property that threatens the general interest or the legitimate rights and interests of others, the person in charge shall carry out repair in a timely fashion; property owners should cooperate with said repair.
Where the person in charge fails to provide repair as obliged, the assembly of property owners may decide to have the property service enterprise carry out repair, with the original person in charge liable for the resulting costs.

Chapter VI Legal Liabilities

Article 56 Where the constructing entity of residential property fails to hire a property service enterprise by means of bidding, or hires a property service enterprise by means of agreement without approval in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level, a warning shall be given, and a fine of no more than 100,000 RMB may be imposed.

Article 57 Where a constructing entity makes unauthorized use of property which is included in the common area or common facilities whose ownership or use rights belong to the property owners as a whole in violation of these Regulations, a fine of between 50,000 and 200,000 RMB shall be imposed by the real estate administration department of the local people's government above the county level; where losses have been suffered by relevant property owners, the constructing entity shall be liable to pay compensation.

Article 58 Where relevant materials are not handed over in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level; if the deadline passes without transfer of relevant documents, the constructing entity and property service enterprise shall be reported, and a fine of between 10,000 and 100,000 RMB shall be imposed.

Article 59 Where an enterprise engages in property management services without a license in violation of these Regulations, the illegal earnings shall be confiscated by the real estate administration department of the local people's government above the county level, and a fine of between 50,000 and 200,000 RMB shall be imposed; where losses have been suffered by relevant property owners, the enterprise shall be liable to pay compensation.
Where a license has been obtained by fraudulent means, the penalties in the preceding paragraph shall be imposed and the license revoked by the department which issued the license.

Article 60 Where a property service enterprise entrusts others with all property management related to a particular property management area in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level, and a fine of 30% to 50% of the value of the contract imposed; where the circumstances are serious, the property service license shall be revoked by the department which issued the license. The earnings from the arrangement shall be used for the repair and maintenance of the common area and facilities within the property management area, with the reminder used at the discretion of the assembly of property owners; where losses have been suffered by relevant property owners, the enterprise shall be liable to pay compensation.

Article 61 Where maintenance funds are diverted or embezzled in violation of these Regulations, relevant funds shall be recovered by the real estate administration department of the local people's government above the county level, a warning shall be given, illegal earnings confiscated, and a fine of no more than twice the amount of divert funds may be imposed; where property service enterprises misappropriated maintenance funds and the circumstances are serious, their license shall be revoked by the department which issued the license; where the case constitutes a crime, the directly responsible person in charge and other directly responsible individuals shall be investigated and prosecuted pursuant to law.

Article 62 Where the constructing entity fails to provide a location within the property management area for the property management office as required in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level, a warning shall be given, any illegal earning confiscated, and a fine of between 100,000 RMB and 500,000 RMB imposed.

Article 63 Where a property service enterprise uses the property services office for other uses without the approval of the assembly of property owners in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level, a warning shall be given, and a fine of between 100,000 RMB and 500,000 RMB imposed; where there are earnings, they shall be used for the repair and maintenance of the common areas and facilities with the property management area, with the remainder at the discretion of the assembly of property owners.

Article 64 Where one of the following acts is committed in violation of these Regulations, rectification within a prescribed time period shall be ordered by the real estate administration department of the local people's government above the county level, a warning shall be given, and punishment imposed according to the stipulations of the subsequent paragraph; where there are earnings, they shall be used for the repair and maintenance of the common areas and facilities with the property management area, with the remainder at the discretion of the assembly of property owners:
1. Using, without permission, common buildings or facilities with the property management area for purposes other than those stipulated in relevant construction plans;
2. Occupying or excavating, without permission, the roads or grounds within the property management area, harming the common interest of property owners;
Using the common areas and facilities of a property management area for business activities without permission.
Where an individual commits one of the violations stipulated in the preceding paragraph, he or she shall be fined between 1,000 and 10,000 RMB; where an organization commits one of the violations stipulated in the preceding paragraph, it shall be fined between 50,000 and 100,000 RMB.

Article 65 Where a property owner fails to pay property service fees in violation of these Regulations, the assembly of property owners shall urge said property owner to pay the fees within a prescribed time limit; if the property owner fails to pay before the deadline, the property service enterprise may file suit with the people's court.

Article 66 Where a property owner, acting in the name of the assembly of property owners or the committee of property owners, carries out activities that violate relevant laws or regulations and said activities constitute a crime, said property owner shall be lawfully investigated and prosecuted for legal liability; where the actions do not constitute a crime, the public securities authorities shall handle punishment pursuant to law.

Article 67 Where the personnel of the competent construction administration department of the State Council, the real estate administration department of the local people's government above the county level, or other relevant administrative departments take advantage of their office to obtain property or other benefits, fail to perform their duties pursuant to law, or fail to investigate illegal activities and where said actions (or non-actions) constitute a crime, they shall be lawfully investigated and prosecuted for legal liability; where said actions (or non-actions) do not constitute a crime, administrative sanction shall be imposed.

Chapter VII Supplementary Provisions

Article 68 These Regulations shall go into effect as of September 9, 2003.