Is it legal to settle the property fee at 0.5 ‰ per day?

It is not illegal to make such an agreement in the contract. However, if the agreed liquidated damages are too high, the breaching party may request an appropriate adjustment of the liquidated damages. Five thousandths of the daily penalty is equivalent to more than 180% of the annual penalty, and the court may consider the penalty too high. For the case of excessive liquidated damages, at present, the court usually calculates liquidated damages at 30% of the total amount (every year).

Clause 1 14 of the Contract Law stipulates that the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, or may agree on the calculation method of the compensation amount for losses caused by breach of contract. Therefore, liquidated damages are punitive, not based on the premise that the non-breaching party suffers losses.

Generally speaking, the upper limit of the contract penalty is not more than 30% of the actual loss. But if it is too high or too low, you can ask the court to reduce or increase it.

Extended data

Calculation formula of property late payment fee

If the delivery should be made to 50 yuan this month, but the owner delays the delivery by 14 months, 50 yuan × 5% = 2.5 yuan /2.5 yuan× 30 per day (30 days per month )×1050 yuan will be calculated as a penalty of 5% per day, but one problem must be made clear, that is, the property company stipulated in the property service contract cannot provide services.

In other words, if the service of the property management company is not in place, is it also agreed to compensate the owner for liquidated damages by 5% on a daily basis? If the property service contract only stipulates the penalty for the owner's default on the property fee, but not the penalty for the service of the property company (this situation is more common in previous property service contracts).

In other words, the proportion of late payment of property fees by owners is obviously higher than that of inadequate services by property companies, resulting in unequal compensation amounts between the two parties to the contract, which violates the basic principles of contract law.

In real life, in the event of litigation related to liquidated damages in this kind of property service contract, the court generally does not support the property company to demand liquidated damages. This is the basic principle that the contract law fully considers the equality of rights and obligations of both parties.

Baidu encyclopedia-liquidated damages

Baidu Encyclopedia-People's Republic of China (PRC) Contract Law