How to calculate the liquidated damages for property fees?

Legal analysis: For some reasons, the owner may pay the property fee overdue. However, overdue payment of property fees is likely to result in liquidated damages, sometimes called late fees. There is no clear agreement on the calculation method of unpaid property fees, which mainly depends on the property service contract between the owner and the property management unit. There is no penalty clause in some contracts, but the unpaid property fee violates the property service contract signed by both parties, which is obviously a breach of contract. Therefore, if there is a penalty clause in the contract, it shall be implemented according to the contract. If there is no agreement in the contract, the property management unit may demand to pay the bank loan interest for the same period, but shall not charge fees at will. From a practical point of view, how much liquidated damages should be paid for defaulting on property fees depends on the specific agreement in the property management contract, but it is generally agreed to be three thousandths. If it is higher than the standard of liquidated damages prescribed by law, it may be required to reduce it appropriately.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 582 Where the performance is not in conformity with the agreement, it shall bear the liability for breach of contract in accordance with the agreement of the parties. If the liability for breach of contract is not stipulated or clearly stipulated and cannot be determined according to the provisions of Article 510 of this Law, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, rework, replacement, return, price reduction or remuneration according to the nature of the subject matter and the size of the loss.

Article 585 The parties may agree that one party shall pay a certain amount of liquidated damages to the other party for breach of contract, or may agree on the calculation method of the amount of compensation for losses caused by breach of contract.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.