Is it legal to collect the decoration deposit for the property?

It is illegal to collect the decoration deposit of the property.

There is no legal provision for property to collect decoration deposit, so it is illegal for property to collect decoration deposit from owners. Because it is not mandatory, if the owner does not want to, the property has no right to collect it. However, both parties can find a balance point through negotiation and sign an agreement that both parties are willing to perform. Those property management companies pay the deposit before issuing the entrance permit to the decoration company, which violates the principle of free consumption of the owners as consumers and is illegal. The decoration party and the property should communicate well on the charging standard of the decoration deposit, and make a clear agreement in the contract, clearly stipulating the payment method, use method and deduction method of the decoration deposit.

Property replacement process is as follows:

1. application

Living in a residential area, where the property delivery construction area reaches more than 50%, or the property delivery construction area reaches more than 30% but less than 50%, and has been used for more than 1 year, five or more owners may jointly submit a written application to the neighborhood office or the town people's government where the residential area is located, fill in the Application Form for the Establishment of the Preparatory Group for the Owners' Congress, and set up the owners' committee.

2. Establish a preparatory group

After receiving the application, the street office shall make a written reply to guide the community to set up the preparatory group of the owners' committee.

3. Make preparations.

After the approval of the preparatory group, notify the property management company to report the list of all owners, contact address and telephone number to the sub-district office within 15 days, and the sub-district office will submit the above materials to the preparatory group within 5 days after receiving the relevant materials.

4. Information disclosure

The preparatory group shall, within 30 days from the date of its establishment, draw up the owners' convention, the articles of association of the owners' committee and the election method of the owners' committee, post them in a prominent position in the residential area (building) to solicit the opinions of the owners, and publish and distribute the publicity materials of the policies and regulations of the owners' committee to the owners on the bulletin board.

5. Election Committee candidates

The preparatory group organizes all building owners to produce candidates for the owners' committee through self-recommendation or recommendation, and posts and publishes the resumes of the candidates for the owners' committee, the voting format samples of the owners' committee and the agenda of the owners' meeting to the owners, and at the same time, sends the election method of the owners' committee to all owners in written form.

6. Prepare for the owners' meeting

After completing the above work, the preparatory group will send the list of owners' candidates and their resumes, the election method of the owners' committee, the articles of association of the owners' committee and the owners' convention to the sub-district office, and put forward a written application for convening the owners' meeting or owners' congress, and make good preparations for the meeting.

7. Convene a general meeting to elect members

The preparatory group held a meeting according to the agenda: collecting and registering votes; To review and vote on the articles of association of the owners' committee and the owners' convention; Votes are counted in public, the election results are read out, and members of the owners' committee are produced. After the meeting, the preparatory group will announce the conference sign-in form and election results statistics.

8. Owners Committee applying for registration

Within/0/5 days from the date of production, apply to the local district/county real estate administrative department with the application form for registration of the owners' committee, the approval certificate of the street office, the power of attorney of the owners and other related documents.

9. Approval and reply

District and county-level city real estate administrative departments shall, after examination, give a written reply to the owners' committee. The owners' committee will engrave the official seal with the approval from the public security department, and report the official seal style to the district, county-level city real estate administrative departments and sub-district offices for the record.

To sum up, it is illegal for a property to collect a decoration deposit. If the law does not clearly stipulate that fees can be charged, but the property service provider still asks for fees, it can be considered as arbitrary charges, and the owner has the right to refuse. However, if the owner and the property service provider agree on the terms of the decoration deposit in the contract, it shall be handled in accordance with the agreement.

Legal basis:

Article 40 of the Regulations on Property Management

Property service charges should follow the principles of rationality, openness and adaptability between fees and service levels, and distinguish the nature and characteristics of different properties. The owners and the realty service enterprise shall, according to the charging standards for realty service formulated by the competent price department of the State Council in conjunction with the administrative department of construction of the State Council, stipulate in the realty service contract.

Article 42

The price departments of the people's governments at or above the county level shall, jointly with the real estate administrative departments at the same level, strengthen the supervision of property service charges.