Regulation on Realty Management (2018 Revision)

Regulation on Realty Management (2018 Revision) Regulation on Realty Management (Issued by Order No. 379 of the State Council of the People's Republic of China on June 8, 2003; revised according to the Decision of the State Council on Amending the Regulation on Realty Management on August 26, 2007 for the first time; revised according to the Decision of the State Council on Amending the Some Administrative Regulations on February 6, 2016 for the second time; amended in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulations on March 19, 2018) Chapter I General Provisions Article 1 The present Regulation is enacted in order to regulate the realty management activities, to safeguard the legitimate rights and interests of the owners and the realty service enterprises, and to improve the living and working environment of the people. Article 2 For the purpose of the present Regulation, “realty management” shall refer to the activities of maintenance, conservation, and management of the houses and supporting facilities, as well as the relevant sites, and protection of the environmental sanitation and relevant order within the realty management area carried out by the owners and the realty service enterprise selected by the owners, pursuant to the stipulations of the realty service contract. Article 3 The state advocates that owners choose realty service enterprises through open, fair and just market competition. Article 4 The state encourages the adoption of new technologies and methods and the reliance on the advancement of science and technology to improve the levels of realty management and service. Article 5 The administrative department of construction under the State Council shall be in charge of the supervision and administration of the realty management activities all over the country. The administrative departments of construction of the local people's governments at the county level and above shall be in charge of the supervision and administration of the realty management activities within their respective administrative areas. Chapter II Owners and Owners' Congress Article 6 The title holder of a house is an owner. An owner is entitled to the following rights in the realty management activities: 1. Receiving services provided by the realty service enterprise pursuant to the stipulations of the realty service contract; 2. Proposing to hold the session of the owners' congress, and presenting suggestions in respect of the matters relating to realty management; 3. Presenting suggestions on the formulation and modification of the management covenant and the rules regarding the owners' congress; 4. Attending the sessions of the owners' congress and exercising the voting right; 5. Electing the members of the owners' committee and being entitled to be elected; 6. Supervising the work of the owners' committee; 7. Supervising the performance of the realty service contract by the realty service enterprise; 8. Having the right to know and the right to supervise the use of the common parts, common facilities and relevant sites of the realty; 9. Supervising the management and use of the special fund for the maintenance of the common parts and common facilities of the realty (hereinafter referred to as special fund);and 10. Other rights provided for by laws and regulations. Article 7 An owner shall perform the following obligations in the realty management activities: 1. Abiding by the management covenant and the rules of procedures of the owners' congress; 2. Abiding by the rules in respect of the use of the common parts and common facilities of the realty and the maintenance of the public order and environmental sanitation within the realty management area; 3. Executing the decisions of the owners' congress and the decisions made by the owners' committee upon authorization of the owners' congress; 4. Paying special maintenance funds pursuant to the relevant provisions of the state; 5. Paying realty service fees on time;and 6. Other obligations provided for by laws and regulations. Article 8 The owners' congress shall consist of all the owners within the realty management area. The owners' congress shall represent and safeguard the legitimate rights and interests of all the owners within the realty management area in the realty management activities. Article 9 One owners' congress shall be established in one realty management area. The elements, such as common facilities, building scale, and community construction of the realty etc. shall be taken into consideration in the division of realty management areas. The specific measures shall be formulated by the provinces, autonomous regions, and municipalities directly under the Central Government. Article 10 The owners in a same realty management area shall, under the guidance of the administrative department of real estate of the people's government of a district or county, the sub-district office or the people's government of a township at the place where the realty is located, form an owners' congress and elect an owners' committee. However, where there is only one owner, or where there are few owners who all agree not to form an owners' congress, the owner(s) shall (jointly) perform the duties of the owners' congress and the owners' committee. Article 11 The following matters shall be jointly decided by the owners: 1. Formulating and modifying the rules of procedure of an owners' congress; 2. formulating and modifying a management covenant; 3. Electing an owners' committee or replacing a member of an owners' committee; 4. Selecting, employing and dismissing a realty service enterprise; 5. Raising and applying the special maintenance fund; 6. Transforming and reconstructing a building and its attachments; and 7. Other important matters relating to the co-ownership and joint management right. Article 12 A session of an owners' congress may be held in the form of either collective discussion or written inquiries; however, the session shall have presence of owners who possess exclusive areas accounting for more than half of the total area of buildings and owners who account for more than half of the total number of owners within the realty management area. An owner may appoint a proxy to participate in a session of an owners' congress. A decision made by an owners' congress on a matter set forth in subparagraph 5 or 6 of Article 11 of this Regulation shall be subject to the approval by owners who possess exclusive areas accounting for more than 2/3 of the total area of buildings and owners who account for more than 2/3 of the total number of owners; and a decision made by the owners' congress on any other matter set forth in Article 11 of this Regulation shall be subject to the approval by owners who possess exclusive areas accounting for more than half of the total area of buildings and owners who account for more than half of the total number of owners. A decision of an owners' congress or an owners' committee shall have a binding force on the owners. Where a decision made by an owners' congress or an owners' committee damages any legitimate right or interest of an owner, the damaged owner may request the people's court to revoke the decision. Article 13 The session of the owners' congress is divided into regular session and temporary session. The regular session of the owners' congress shall be held pursuant to the rules of procedure of the owners' congress. Upon proposal by over 20% of the owners, the owners' committee shall hold a temporary session of the owners' congress. Article 14 Where a session of the owners' congress is to be held, all the owners shall be notified 15 days prior to the session. In the event of a session of owners' congress of any residential district, the relevant residents' committee shall be informed at the same time. The owners' committee shall take minutes of the owners' congress. Article 15 The owners' committee is the executive body of the owners' congress, and shall perform the following duties: 1. Convening the sessions of the owners' congress, and reporting the implementation of the realty management; 2. Signing the realty service contract on behalf of the owners with the realty service enterprise selected by the owners' congress; 3. Getting to know the opinions and suggestions of the owners and realty users in good time, and supervising and assisting the realty service enterprise in performance of the realty service contract; 4. Supervising the implementation of the management covenant; and 5. Other duties assigned by the owners' congress. Article 16 The owners' committee shall, within 30 days from the day of its formation through election, file a record with the administrative department of real estate of the people's government of a district or county, the sub-district office or the people's government of a township at the place where the realty is located. The members of the owners' committee shall be the owners who are enthusiastic about public welfare cause, have high sense of responsibility, and have certain organizing capacity. The director and vice director of the owners' committee shall be elected from the members of the owners' committee. Article 17 The management covenant shall stipulate, pursuant to law, the use, maintenance and management of the relevant real properties, the common interests of the owners, the obligations of the owners, and the liabilities for breach of the covenant, etc. The management covenant shall respect the social morality, and shall not violate a law or administrative regulation or......