Does the property have the right to collect late fees from the owners?

Does the property have the right to collect late fees from the owners?

Property companies generally have no right to collect late fees from owners.

Late payment fee, generally regarded as liquidated damages in law, is a punishment for breach of contract. In property management, if the property company collects late fees because the owner defaults on the property fees, it will actually transform the debt relationship between the property company and the owner into a new contractual relationship. Whether this transformation is legal or not needs to be evaluated according to the specific situation.

In China, according to the Property Management Regulations, Property Law and other relevant laws and regulations, owners are obliged to pay property fees on time, and property companies have the right to charge property fees from owners. If the owner fails to pay the property fee within the time limit, the property company can take measures to urge the payment, but it cannot collect the late payment fee. If the owner ignores the payment requirements of the property company, the property company can bring a lawsuit to the people's court according to law, demanding the owner to pay the property fee and bear the corresponding liability for breach of contract.

To sum up:

Under normal circumstances, property companies have no right to collect late fees from owners. If the owner fails to pay the property fee within the time limit, the property company can take measures to urge the payment, but it cannot collect the late payment fee. If the property management company violates the relevant laws and regulations and collects late fees, the owners can complain or bring a lawsuit to the relevant departments to safeguard their legitimate rights and interests.

Legal basis:

Article 67 of the Property Management Regulations stipulates: "If the owner violates the property service contract and fails to pay the property service fee within the time limit, the owners' committee shall urge him to pay it within a time limit; If it fails to pay within the time limit, the realty service enterprise may bring a lawsuit to the people's court. "

Article 72 of the Property Law stipulates: "The owner shall pay the property service fee to the property service enterprise as agreed. If the owner and the property user agree that the property user will pay the property service fee, the owner shall bear joint and several liability from their agreement. "