New efforts to guide property management ( 2003-06-20 07:44) (China Daily)
A new regulation that helps clarify the rights and responsibilities of real
estate developers and property management companies is expected to come into
force in September.
The property management regulation, issued by the State Council, will help
the landlord solve business disputes and legal problems when the quality of a
residential asset is questioned.
"The regulation marks a great breakthrough in property management,'' said Xie
Jiajin, a division chief with the Ministry of Construction.
"The regulation stipulates constructors of residential buildings have to
select a qualified property management company through public bidding before the
owners of the estate can select their own property management company.''
Xie said other constructors must stick to the principle of separating real
estate development from property management and also choose a property
management company through bidding.
Providing a property management service at an early stage (before selling)
must be included in the contract between the proprietor and the constructor.
To plug loopholes in property management caused by the poor quality of
construction, the regulation said the property management company must make a
thorough examination of public facilities before taking control of the property.
It must also ask for relevant documents when completing formalities.
According to the regulation, any behaviour that runs counter to the interests
of the residents will be harshly punished. Either the proprietor or the property
management company has the right to change the function of public construction
and facilities.
The agreed content of the property management service must be written in the
contract between the proprietor and the property management company. Anyone who
defaults on service payment will be sued by the property management company.
The new regulation has further strengthened the supervision right of the
proprietor by stating that at least two thirds of the proprietors can decide to
employ or dismiss a property management company.
The regulation also declared that proprietors should set up a special fund
for maintaining and upgrading public facilities. The fund cannot be used for any
other purposes.
