Court Orders Owner to Pay CNY 1,295.22 in Property Fees
A property management company in Eastern China City obtained a court judgment against a homeowner who failed to pay物业管理 service fees and common facility charges for a 20-month period. The court ruled in favor of the plaintiff company, ordering the defendant, a resident of the Huating Jiayuan residential community, to pay a total of CNY 1,295.22 together with late payment interest. The case highlights the legal obligations of property owners under valid management contracts.
The plaintiff, a property management company, entered into a Property Management Service Agency Contract with the Huating Jiayuan Owners Committee on August 25, 2009. The contract, effective from May 1, 2009 to April 30, 2012, set management fees at CNY 0.45 per square meter per month for multi-story residential units and a common facility maintenance fee of CNY 1.5 per square meter per year. The defendant, Mr. Li, owned a unit measuring 112.63 square meters in the community. Between May 2009 and December 2010, Mr. Li failed to pay the service fee of CNY 1,013.66 and the common facility fee of CNY 281.56, totaling CNY 1,295.22. Despite multiple reminders—including in-person visits, phone calls, and a formal demand letter sent in October 2011—the defendant refused to pay.
At the hearing held on March 12, 2012, the plaintiff presented two key pieces of evidence: the signed management contract, which demonstrated its lawful authority to manage the community and collect fees, and a copy of the催费函 (fee reminder) sent to the defendant. Mr. Li did not appear in court, having been properly served with a summons, and did not submit any defense or evidence. The court considered his absence as a waiver of his right to cross-examine the plaintiff’s evidence. After reviewing the documents, the court admitted both exhibits as credible and relevant.
The court found that the Property Management Service Agency Contract was legally valid and binding on all owners in Huating Jiayuan, including Mr. Li. Under the contract, each owner was required to pay the agreed service fees and common facility maintenance fees on time. The court calculated the amounts due based on the defendant’s unit area of 112.63 square meters and the 20-month period in question: the service fee was 0.45 x 112.63 x 20 = CNY 1,013.66, and the common facility fee was 1.5 x 112.63 / 12 x 20 = CNY 281.56, combined to CNY 1,295.22. The court held that the plaintiff’s demand for payment was justified.
According to relevant law, the court relied on Article 109 of the Contract Law, which provides that parties must perform their payment obligations, and on Article 1 and Article 6 of the Supreme People’s Court’s Interpretation on Disputes over Property Service Contracts, which confirm that a valid management contract binds all owners. The court also cited Article 42(1) of the Property Management Ordinance, requiring owners to pay fees, and Article 130 of the Civil Procedure Law, allowing a default judgment when a defendant fails to appear. The court ordered Mr. Li to pay the full amount within ten days of the judgment taking effect, and if late, to pay double interest as prescribed by law.
This case demonstrates that Chinese courts will enforce properly executed property management contracts and hold individual owners accountable for unpaid fees. For property management companies, the judgment reinforces the importance of maintaining clear contractual records and diligent documentation of fee reminders. Owners should be aware that non-payment—even for relatively small amounts—can lead to court action and additional costs. The ruling also confirms that a defendant’s absence does not prevent the court from making a decision based on available evidence. Such outcomes help maintain financial stability for community management and ensure that common facilities remain funded.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.