Is the late fee for property management legal?

Legal analysis: If the late payment fee is too high and obviously unfair, you can apply to the court for termination of the contract as overlord clause. As liquidated damages, the total amount of late fees cannot exceed the principal, and late fees cannot be collected. Property service contracts usually stipulate that if the owner fails to pay the property fee on time, there will be a late fee. From the nature analysis, the above-mentioned late payment fee is actually the liquidated damages that the owner needs to bear when he fails to perform the contract, so it belongs to the legal category. Therefore, it can be said that the legally agreed late payment fee shall be borne by the owner in accordance with the property service contract. However, the property management company must exercise the above rights based on the contract. If the contract does not stipulate the late payment fee, the property management company has no right to collect the late payment fee.

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

Article 389 The scope of guarantee of a security interest includes the principal creditor's right and its interest, liquidated damages, damages, expenses for keeping the secured property and realizing the security interest. Unless otherwise agreed by the parties, such agreement shall prevail.

Article 470 The contents of a contract shall be agreed upon by the parties, and generally include the following clauses:

(1) The name and domicile of the party concerned;

(2) Subject matter;

(3) quantity;

(4) quality;

(5) Price or remuneration;

(6) Time limit, place and method of performance;

(7) Liability for breach of contract;

(8) Methods for resolving disputes.

The parties may conclude a contract by referring to the model texts of various contracts.