What does real estate reserve mean?

Property reserve refers to the fees charged by developers to buyers in accordance with the terms of the contract when selling commercial housing.

Generally known as the special maintenance fund for the building itself, it is used for the large and medium-sized repair and renovation of the building itself and public parts and equipment and facilities (such as elevators and pumps). Generally speaking, it is the fee paid by the owner to solve the housing quality problem.

At present, China's legal system is not perfect, some local property management fees are in arrears, and owners' sense of responsibility is not in place. China's special maintenance funds are paid in one lump sum when buying a house. After the property has been used for a certain number of years, when the maintenance funds are insufficient, it will be handed over to the owners. But in truth, the special maintenance fund can be paid in one lump sum, monthly with the property management fee, or collected from the owner at any time when maintenance, renewal and transformation are needed.

The developer will pay the maintenance fee to the person in charge of the property before handling the property right certificate for the owner. If the community has certain conditions, you can choose to pay fees to the property or the owners' Committee. The use of maintenance funds can only be earmarked, and shall not be misappropriated.

Legal basis:

"Property Management Regulations" clearly stipulates that the subject of payment is the owner. Owners enjoy the ownership of the house according to law and the right to use the parts and facilities of the property. They should be responsible for the maintenance, renewal and transformation of parts and facilities. The cost of this part of the funds is borne by the buyers, not by the developers who have sold their houses.