REGULATIONS OF SHANGHAI MUNICIPALITY ON RESIDENTIAL PROPERTY MANAGEMENT

   Article 1 With a view to standardizing the use and maintenance of residential property and other management services in this municipality,
protecting the legitimate rights and interests of the proprietors, house users and property management enterprises, and creating
and maintaining a neat, safe and comfortable living environment, the present Regulations are formulated in accordance with the relevant
state laws and regulations, and in line with the actual circumstances of this municipality.

   Article 2 The present Regulations apply to the residential property management within the administrative area of this municipality.

   Article 3 The residential property (hereinafter referred to as property) specified in the present Regulations refers to the residential buildings
and relevant public facilities.

The proprietors specified in the present Regulations refer to those who own the property.

The users specified in the present Regulations refer to the lessees of the property and those other persons who actually use the property.

The property management enterprises specified in the present Regulations refer to those which, entrusted by proprietors or proprietors
committees, perform professional management services in accordance with the property management and service contracts.

   Article 4 Property management shall follow the principle of combining the autonomous management of proprietors with entrusted professional
management services of property management enterprises.

   Article 5 Shanghai Municipal Housing and Land Administration Bureau (hereinafter referred to as the Municipal Housing and Land Administrate
on Bureau) shall be the competent authority of this municipality responsible for organizing the enforcement of the present Regulations.

The property management departments at district or county level shall be the administrative departments within their own areas in
charge of the administration and supervision of the property management in accordance with the present Regulations.

Administrative departments of construction, planning, municipal administration, public utilities, power, post and telecommunication,
environment sanitation, landscape gardening, housing, public security, price control, and industry and commerce shall coordinate
in the enforcement of the present Regulations in accordance with their own responsibilities.

Subdistrict offices and township people’s governments shall assist relevant administrative departments with supervision of property
management and coordination of the mutual relations between property management and community management and services.

   Article 6 The proprietors committee is an organization which represents all the proprietors in property management within its property management
area.

Only one proprietors committee shall be set up within one property management area.

The size of a property management area shall be determined by the district or county housing and land administrative departments in
accordance with the relevant conditions of residence and public facilities.

   Article 7 The proprietors committee shall be elected by the proprietors meeting or by the proprietors’ representatives meeting. Members of
the proprietors committee shall be chosen from the proprietors.

When one of the following situations exists within the property management area, the district or county property management departments
concerned shall work jointly with residence-selling units to organize and hold the first proprietors meeting or the proprietors’
representatives meeting so as to establish the proprietors committee through election:

1. More than 30% of the floor area of the publicly-owned residential buildings are sold;

2. More than 50% of the floor area of the newly-built commodity residential buildings are sold;

3. The residential buildings have been sold for two years already.

   Article 8 The proprietors meeting shall be composed of all the proprietors within the property management area; the proprietors’ representatives
meeting shall be formed through proportional election when the proprietors within the property management area are great in number.

The proprietors meeting or the proprietors’ representatives meeting shall be attended by more than half of the proprietors or proprietors’
representatives. The decisions made by the proprietors meeting or the proprietors’ representatives meeting shall be approved by more
than half of the proprietors or by more than half of their representatives.

The proprietors committee shall convene the proprietors meeting or the proprietors’ representative meeting at least once a year and
shall, at the proposal made by more than 15% of the proprietors, or 15% of their representatives, convene the proprietors meeting
or the proprietors’ representatives meeting to discuss the proposals raised.

The proprietors meeting or the proprietors’ representatives meeting shall invite representatives from among the neighborhood committee
and house users to attend the meeting as non-voting delegates.

   Article 9 The proprietors meeting or the proprietors’ representatives meeting shall exercise the following functions and powers:

1. Elect or recall the members of the proprietors committee;

2. Examine and approve the regulations of the proprietors committee and proprietors’ joint pledge;

3. Listen to, examine and approve the work reports on property management services supplied;

4. Make decisions on other major items concerning property management.

   Article 10 The proprietors committee shall, within 15 days after its election, register at the district or county property management departments
concerned with the following documents:

1. Application for the registration of the established proprietors committee;

2. the list of member of the proprietors committee;

3. the regulations of the proprietors committee.

The district or county property management departments shall complete the registration within 15 days after receipt of the registration
application, and shall reject the application and inform the applicants in written form if the establishment of the proprietors committee
does not conform to the provisions of the present Regulations.

   Article 11 The proprietors committee shall be composed of 5 to 15 members according to the size of the property management area.

The chairman and vice-chairmen of the proprietors committee shall be chosen from among the committee members.

The term of the proprietors committee shall be two years.

   Article 12 The proprietors committee shall protect the legitimate rights and interests of all the proprietors and perform the following duties:

1. Convene the proprietors meeting or the proprietors’ representatives meeting and report implementation of property management within
the area;

2. Engage or discharge property management enterprises, and make, alter, or cancel property management contracts signed with property
management enterprises;

3. Be responsible for the raising, use, and management of the property maintenance fund that has been established in accordance with
the present Regulations;

4. Examine and determine the annual plan, budget, and final accounts of property management services put forward by the property management
enterprise;

5. Listen to complaints and suggestions of the proprietors and house users, and supervise management services conducted by the property
management enterprise;

6. Supervise the proper use of public buildings and facilities;

7. Perform other responsibilities delegated by the proprietors or the proprietors’ representatives meeting.

The proprietors committee shall hold meeting regularly which shall be effective only when more than half of the committee members
attend, and decisions shall be made by more than half of the committee member voting for the decisions.

   Article 13 Residence-selling units shall provide the property management area with necessary houses for property management services in accordance
with relevant stipulations, and the ownership of there houses shall belong to all the proprietors; the profit gained from the houses
used for property management services shall be spent to cover working expenses of the proprietors committee and replenish the property
maintenance fund. Detailed measures be worked out by the Municipal People’s Government.

   Article 14 The proprietors group shall be formed by several representatives chosen from among the proprietors in the residential building, and
its shall be:

1. Listen to the complaints and suggestions of the proprietors and house users about property management services and report them
to the proprietors committee or the property management enterprise;

2. Carry out the decisions made by the proprietors committee;

3. Make proposals about the maintenance and renovation space and facilities for common use.

   Article 15 All the proprietors shall be bound by the proprietors’ joint pledge, which is the norms of conduct in the use and maintenance of
property and other management services. House users shall abide by the proprietors’ joint pledge, too.

The proprietors’ joint pledge shall become effective on the day when it is approved by the proprietors meeting or the proprietors’
representatives meeting.

The proprietors committee shall, within 15 days after the proprietors’ joint pledge becomes effective, submit the pledge for the record
to the district (county) property management departments concerned.

   Article 16 The decisions made by the proprietors meeting, the proprietors’ representatives meeting and the proprietors committee shall have
a binding force on all proprietors and house users within the property management area.

The decisions made by the proprietors meeting, the proprietors’ representatives meeting and the proprietors committee shall not contravene
the laws and regulations.

   Article 17 The property management enterprise shall, in accordance with relevant stipulations, apply to the Municipal Housing and Land Bureau
or the district (county) property management departments with whom it has registered for the qualifications certificate in property
management.

The Municipal Housing and Land Bureau and the district (county) property management departments shall, within 20 days after receiving
the application from the property management enterprises, ratify and issue the qualifications certificate.

The property management enterprise shall offer property management services as stipulated in qualifications control.

   Article 18 Proprietors or the proprietors committee shall entrust a property management enterprise to handle their property affairs.

After accepting the entrustment to perform property management services. The property management enterprise shall, on accepting the
entrustment to render property management services, sign a property management service contract with the proprietors or the proprietors
committee.

The property management service contract shall include the following major items:

1. the name and address of the proprietor committee and the property management enterprise;

2. the size of the property management area and the items to be under management;

3. the contents of property management services;

4. the requirements and standards for property management services;

5. the service fees for property management;

6. the duration of property management services;

7. liabilities for breach of contract;

8. the agreement on termination and cancellation of the contract;

9. other items agreed on by both parties concerned.

The duration shall be two years for the property management service contract.

The property management enterprise shall, within 15 days after the property management service contract becomes effective, submit
the contract for the record to the district (county) property management departments.

   Article 19 The parties to the property management service contract shall agree on the following property management services:

1. the use, maintenance and renovation of the areas and installation for common use in the residential buildings;

2. the use, maintenance and renovation of the public facilities within the property management area;

3. proper service of operation of the installations of the building, such as elevators and pumps;

4. sanitation and cleaning service;

5. security service;

6. keep accounts of property maintenance and renovation expenses;

7. safekeep the archives and other datum of the property.

The parties to the property management service contract shall agree on the following items in property management services:

1. maintenance and renovation of the private areas and private installations of the building;

2. other items in property management services entrusted by the proprietors committee.

   Article 20 In order to keep the buildings and public facilities in good condition, to render the environment clean tidy and fine to maintain
good public order and to ensure the convenience and safety in the use of the property, the property management services shall meet
the following requirements:

1. Perform management services in accordance with the technical standards and norms specified by the state and this municipality and
the annual plan of the property management services approved by the proprietors committee;

2. Inform the proprietors and house users in writing of the methods, requirements, points for attention before they begin to use the
buildings; about the use and maintenance of the areas and installations for common use and public facilities in the buildings;

3. Inspect and examine the property management area regularly and thoroughly, and make periodical maintenance of the areas and installation
for common use and public facilities in the residential buildings;

4. Take protective measures immediately after spotting any damage of the areas and installations for common use and public facilities,
and repair them as stipulated in the property management service contract;

5. Repair the damages of the property within a time limit when notified of the damages;

6. Keep a good record of the maintenance and renovation of the property and of incomes received and expenses incurred, and keep the
property archives and relevant account books properly;

7. Submit the income-expense accounts of property maintenance and renovation to the proprietors committee for examination every six
months;

8. Listen to the complaints and suggestions made by the proprietors committee, the proprietors and house users periodically, and improve
and perfect the management services;

9. Dissuade and stop any person from violating the present Regulations or the proprietors’ joint pledge and report the wrongful act
to the proprietors committee and related administrative organs;

10. Offer other management services entrusted by the proprietors committee, the proprietors and house users in accordance with the
stipulations of the property management service contract.

Apart from the provisions mentioned above, the property management enterprise shall cooperate with the neighborhood committee in community
management and services.

   Article 21 The service fees for property management shall be charge on the principle of reasonableness, openness and in conformity with the
management level.

   Article 22 The property management service fees shall include the following:

1. management fees, which shall be used for the daily management within the property management area, including inspection and examination
within the property management area, book-keeping of maintenance and renovation expenses, the safekeeping of property archives and
datum, as well as other relevant management services;

2. operating cost for installations in buildings which is used as expense needed for service rendered to the operating of installations
such as elevators and water-pumps in buildings.

3. sanitation fees, which shall be used for the daily sanitation service within the property management area;

4. security fees, which shall be used for the service rendered to daily security within the property management area;

5. maintenance expenses, which shall be used to pay the expenses for property maintenance.

The fees in Items 1, 2, 3 and 4 above shall be calculated separately once a month. The expenses in Item 5 shall be calculated in accordance
with the maintenance that has been actually done.

   Article 23 The standard of property management service fees charged shall be determined in accordance with the following provisions:

1. The standard of service fees for the publicly-owned residential building already sold to its residents shall be determined jointly
by the Municipal Price Control Bureau and the Municipal Housing and Land Administration Bureau;

2. The standard of service fee for the ordinary commodity residential buildings for the domestic market shall be determined through
negotiation between property management enterprises and proprietors or the proprietors committee within the floating range of base
price set by the district (county) price control departments jointly with the property management departments concerned;

3. The standard of the service fees for the high-quality commodity residential buildings for the domestic market and commodity residential
buildings to be sold to foreigners shall be determined through negotiation between the property management enterprises and proprietors
or the proprietors committee.

The fees for other management services shall be determined through negotiation between the property management enterprise and the
proprietors committee or proprietors or house users.

   Article 24 The property management enterprise shall charge the proprietors the property management service fees as stipulated in the property
management service contract.

If proprietors and house users have agreed that the property management service fees shall be paid by the house users, the service
fees shall be paid as agreed.

If it is agreed that the property management service fees may be collected in advance, the term of advanced payment shall be to more
than 3 months.

   Article 25 The items and standards concerning property management service fees shall be made known to the public. If proprietors or house users
have paid the property management service fees specified in the present Regulations, no other unit and individual person shall charge
any fees of the same nature again.

Proprietors or house users may refuse to pay property management service fees charged by some property management enterprise which
has offered services without being entrusted by the proprietors committee, the proprietors or house users.

   Article 26 The property management enterprise shall, within 10 days after the termination or cancellation of the property management service
contract, handle the following for the proprietors committee, and report to the district (county) property management departments
for the record:

1. Settle the accounts of property management service fees paid in advance and refund the overcharge;

2. Hand over all the archives and relevant account books;

3. Hand over the houses, grounds and other properties jointly owned by the proprietors.

   Article 27 Proprietors and house users shall abide by the relevant provisions of the laws and regulations, follow the principle of being beneficial
to the use and safety of the property, and the principle of, fairness and reasonableness, and properly handle the interrelations
between water supply, drainage, passage, ventilation, lighting, maintenance, sanitation and environmental protection.

   Article 28 The following acts shall be prohibited in the property use:

1. Damage the load-bearing structures of houses and destroy the appearances of houses;

2. Occupy or damage the areas and installations for common use or move installations for common use to another location;

3. Put up buildings or structures in courtyards or gardens, on platforms, roofs, roads or other places;

4. Occupy greenspace or destroy greenery;

5. Set up vendors’ stands and open markets without permission;

6. Dump garbage or odds and ends at random;

7. Put up posters, or draw and carve on building and structures without permission;

8. discharge poisonous or harmful materials or harmful materials, or make noises that go beyond the standard specified;

9. Other acts prohibited by the laws and regulations.

   Article 29 Proprietors or house users shall inform the property management enterprise before they decorate their residential buildings, and
the property management enterprise shall inform the proprietors house users of the prohibitions and points for attention in interior
decoration.

The property management enterprise shall offer advice on and exercise supervision over interior decoration of residential buildings.
When it finds out any act violating Article 28 of the present Regulations, it shall try to stop it and press for correction. It shall
report the case to the proprietors committee timely and ask the relevant administrative organs to impose penalties on those who refuse
to make the correction in accordance with the laws.

   Article 30 The residential function of the building shall not be changed. If there are any special needs that make a functional change necessary,
the change shall be carried out in line with the requirements of the city planning. The proprietor in question shall ask the neighboring
proprietors, the house users and the proprietors committee for a written consent and submit the written consent to the district (county)
property management departments for examination and approval.

The functions of public buildings and facilities built within the property management area according to plan shall not be changed.

   Article 31 No unit or individual person shall occupy any roads and grounds within the property management area. If there is a need to occupy
temporarily any roads or grounds within the management area because of property maintenance or in the public interests, such as digging
the roads or grounds, an agreement has to be reached with the proprietors committee, and the original state has to be restored within
the time limit agreed on.

The proprietors committee shall make the regulations on motor vehicles’ moving about, parking and charging of fee within the property
management area except those special vehicles performing the tasks of security, fire fighting, emergency, first-aid and environment
protection. Parking fees shall be determined in accordance with the provisions of the district (county) price control departments
concerned. The income from vehicle parking shall go into the property maintenance funds and be spent on the maintenance and renovation
of public facilities.

   Article 32 Those who use the property to set up business facilities such as advertisements, shall first ask the relevant proprietors, house
users and the proprietors committee for a written consent, and then go through formalities for examination and approval at the administrative
management department concerned. After given the permission, they shall sign an agreement with the proprietors committee and pay
the set-up fees.

The business facilities set-up fees received shall go into the property maintenance funds.

If the property is used for setting up facilities for public welfare, the relevant provisions stipulated by the Municipal People’s
Government shall be observed.

   Article 33 The disposal and treatment of daily garbage and excrement and urine within the property management area shall follow the relevant
provisions on the management of environmental sanitation in this municipality.

   Article 34 When a proprietor transfers or rent out his residence, the proprietors’ joint pledge shall be attached as an appendix to the residence
transfer contract or the residence lease contract.

The parties concerned shall, within 10 days after the signing of the residence transfer contract or the residence lease contract,
inform in writing the proprietors committee and the property management enterprise of the residence transfer or the residence lease.

   Article 35 The property maintenance funds shall be established upon the sale of publicly-owned residences and newly-built ordinary commodity
houses for domestic market.

The property maintenance fund may be established upon the sale of newly- built high-quality commodity houses for domestic and foreign
markets and commodity residential buildings for foreign buyers.

The specific standards and measures for the establishment of property maintenance funds shall be set by the Municipal People’s Government.

   Article 36 The residence selling unit shall deposit the property maintenance funds with a financial institution and open a special account in
the name of the proprietors’ committee at the interest rate of no less than that of the bankdeposit or urban and rural residents.

The property maintenance fund shall have separate accounts for each building, and be calculated household by household.

   Article 37 The property maintenance funds shall be used for the purpose of maintenance and renovation of the areas and installations for common
use and public facilities, and shall not be used otherwise.

The proprietors committee shall periodically make public the financial operations of the property maintenance funds and put itself
under the supervision of the proprietors.

   Article 38 The expenses on property maintenance and renovation shall be borne in the following ways:

1. Those for private areas and installation shall be borne by the proprietors.

2. Those for areas and installation for common use shall be borne by all the proprietors involved in the whole building in proportion
to the floor area each of them possesses.

3. Those for public facilities shall be borne by all proprietors within the property management area in proportion to the floor area
each of them possesses.

If the areas, and installations for common use and public facilities in residential buildings are intentionally damaged by some person,
the maintenance and renovation expenses shall be borne by the person who is directly liable.

If serious damages occur in the property and affect the safety of the proprietors and house users, the district (county) property
management departments shall press for maintenance within set time limit.

If the property maintenance funds appear to be in sufficient, the proprietors shall pay the property maintenance funds in accordance
with the decisions made by the proprietors committee and in proportion to the floor area each of them possesses. The expenses on
the maintenance and renovation for public facilities in the publicly owned residential building sold to its residents out shall follow
the provisions stipulated by the Municipal People’s Government.

   Article 39 When areas and installations for common use are under repair, the neighboring proprietors and house users shall coordinate. If anyone
brings about property losses to other proprietors and house users by hindering the repairs, he shall be liable for compensation.

If property maintenance and renovation damage the private areas and installations of the neighboring proprietors and house users,
or cause other property losses, those liable for the damage and losses shall restore them to their original state or compensate for
them.

   Article 40 When proprietors transfer their residences, the balance in the property maintenance fund accounts shall not be refunded but continue
to be used for maintenance and renovation of the areas and installation for common use and public facilities in the buildings, the
balance of what was paid by the proprietors shall be paid to the transferor by the transferee.

   Article 41 The first-phase property management in the present Regulations refers to the property management from the day when a residence is
sold to the day when the proprietors’ committee is established.

   Article 42 The unit which sells newly-built commodity residential buildings shall make the pledge on residence use before the sale of a residence
and draw up the first-property management contract with the property management enterprise it has selected and appointed, and then
submit both the joint pledge and the contract to the district (county) property management departments concerned for the record.

When signing the residence transfer contract with the residence buyer, the unit which sells newly-built commodity residential buildings
shall attach the residence use contract, first-phase property management service contract and the instructions for using the residence
as appendices to the residence transfer contract.

The pledge on residence use shall not contravene the laws and regulations.

   Article 43 The unit which sells newly-built commodity residential buildings is not allowed to transfer separately the ownership’s of areas and
installations for common use or public facilities and the right to use them.

   Article 44 The unit which sells newly-built commodity residential buildings shall assume the responsibility to maintain them in accordance with
the period of guaranteed maintenance and scope of guaranteed maintenance stipulated by the state and this Municipality.

   Article 45 The units which sells newly-built commodity residential buildings shall not use the property management funds during the period of
first-phase property management.

   Article 46 The first-phase property management fees between the day when the first-phase property management service contract is signed and
the day when the newly-built commodity residential buildings are put to use shall be borne by the residence sellers, while those
between the day when the newly-built residential buildings are put to use and the day when the first-phase propert

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.

Facebook