Court Orders Payment of CNY 390 in Property Fee Dispute
A property management company in an eastern China city successfully sued a homeowner for failing to pay annual service fees. The court ordered the defendant to pay overdue charges of CNY 390 for the year 2010. The case highlights the binding effect of collectively signed service agreements on individual owners.
The plaintiff, a property management company, entered into a service contract with the业主委员会 (owners’ committee) of a residential community on December 28, 2008. The contract covered the period from January 1, 2009, to December 31, 2011. The defendant was the owner of a unit measuring 141.38 square meters in building 29 of that community. Under the contract, the fee was set at CNY 0.23 per square meter per month. The defendant refused to pay the 2010 annual fee of CNY 390. After repeated demands, the company filed a lawsuit.
During the hearing, the plaintiff submitted key documents: the community’s owner allocation list, the official registration of the owners’ committee, and the signed service contract. The defendant attended the first hearing but failed to appear for the second session without valid reason. The court proceeded in his absence. The defendant argued that the management company had failed to address issues such as a stolen vehicle, broken streetlights, and poor sanitation in public areas. However, he provided no supporting evidence.
The court held that the owners’ committee had been lawfully registered on August 8, 2008, and signed the service contract in good faith on behalf of all residents. This contract represented the collective will of the owners and was valid and enforceable. Each owner was obligated to perform the duties outlined in the agreement. The court found that the plaintiff had provided the agreed services. Therefore, the defendant was liable to pay the overdue fee.
According to relevant law, a valid service contract binds all owners in the community, even those who did not individually sign it. The defendant’s general complaints about service quality, without concrete proof, did not justify withholding payment. The court applied Article 109 of the Contract Law and relevant judicial interpretations on property service disputes. The fee calculation was straightforward: 141.38 square meters multiplied by CNY 0.23 per month, multiplied by 12 months, resulting in exactly CNY 390.
This case reinforces that owners must pay agreed fees unless they can demonstrate clear contractual breaches with evidence. The court also ordered the defendant to bear half of the litigation costs. If the sum is not paid within ten days, interest will accrue at double the statutory rate. The ruling serves as a reminder that collective agreements regarding property management are legally binding on all individual owners.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.