Do government agencies have the right to designate property companies to settle in residential areas?

Under special circumstances, government agencies have the right to designate property companies to settle in the community. However, if there are no special circumstances, government agencies have no right to interfere with the autonomy of residential areas and property companies.

Legal analysis

Property management company is an enterprise-type economic entity with corresponding qualifications established in accordance with legal procedures and an independent enterprise legal person. As a service enterprise, it has an equal subject relationship with the owner or user, accepts the entrustment of the owner, and implements professional management of the property in a specific area in accordance with the provisions of relevant laws and regulations or the contract, and obtains corresponding remuneration. Under normal circumstances, which property company the community stays in is chosen by the community and the property company. Government agencies have no right to designate property companies to live in any residential areas, nor have the right to designate residential areas to use the services of property companies. These are all ultra vires. The property company fails to perform the service contract, or there is a major dispute between the owner and the property company, which leads to the termination of the service of the property company. Or individual property companies have poor integrity, thinking that they lost money in the takeover, packed up their things and left, and the community was left unattended. In this case, for the safety, health and life of the owners, communities, offices or city government departments will come forward to choose property management companies (only in this case, otherwise the government will exceed its authority).

legal ground

Article 7 of the State Compensation Law of People's Republic of China (PRC), if an administrative organ and its staff infringe upon the lawful rights and interests of citizens, legal persons and other organizations and cause damage, the administrative organ shall be the organ liable for compensation. Where two or more administrative organs infringe upon the legitimate rights and interests of citizens, legal persons and other organizations when exercising their administrative functions and powers, the administrative organs with administrative functions and powers shall be the same organ liable for compensation. Where an organization authorized by laws and regulations infringes upon the legitimate rights and interests of citizens, legal persons and other organizations when exercising the granted administrative power, the authorized organization shall be the organ liable for compensation. Where an organization or individual entrusted by an administrative organ infringes upon the legitimate rights and interests of citizens, legal persons and other organizations and causes damage when exercising the entrusted administrative power, the entrusted administrative organ shall be the organ liable for compensation. If the organ liable for compensation is revoked, the administrative organ that continues to exercise its functions and powers shall be the organ liable for compensation; If there is no administrative organ that continues to exercise its functions and powers, the administrative organ that cancels the organ liable for compensation shall be the organ liable for compensation.