What's the difference between a property service contract and an entrustment contract?

Because property management not only manages, maintains and manages things, but also manages the order between people and the environment, which is reflected in the property service contract, involving a variety of contract contents and has the characteristics of mixed contracts. Because of this, in addition to the above-mentioned nameless contracts, some people think that property service contracts are employment contracts, service contracts, custody contracts, lease contracts, contracting contracts, agency contracts and civil trust contracts.

Property service contract

There are essential differences between the realty service contract and the entrustment contract, mainly in the following aspects:

1. They deal with different subjects. Property service contract is that after the property management enterprise accepts the entrustment of the owner, it independently conducts business in its own independent name and bears the external legal consequences according to the service management matters agreed in the contract. The purpose of the entrustment contract is to handle the affairs of the principal. The so-called client's affairs generally refer to the affairs that the client has an interest and has to do in person without entrustment.

2. In the property management service business activities carried out by the property management company, the owners and the owners' committee only have the right of supervision, but have no right of interference and command. Property management companies have no loyal obligation to obey the instructions of owners and owners' committees. Article 399 of the Contract Law clearly stipulates: "The trustee shall handle the entrusted affairs according to the instructions of the principal." This essentially stipulates the obligations of the trustee.

3. The responsibilities of both parties are different. As stipulated in the realty service contract, both tort liability and breach of contract liability shall be borne by the parties respectively. In the entrustment contract, the legal consequences obtained by the trustee within the scope of the entrustment contract belong to the principal, so the entrustment contract shall be borne by the principal. At the same time, Article 407 of the Contract Law also stipulates: "When handling affairs, the trustee may claim compensation from the principal if he suffers losses due to reasons not attributable to him."

4. The contract forms are different. In order to form a property service contract, we must determine the property management company and sign a property management contract in accordance with the bidding method stipulated by property management laws and regulations. It is generally required to adopt the demonstration text of property management, and the relevant contents and performance of the final contract should also be supervised by the relevant competent departments such as urban construction, city appearance and neighborhood committees. Entrustment contracts are agreed contracts and compulsory contracts. The establishment of an entrustment contract only requires the two parties to reach an agreement, and it is not necessary to deliver something or complete some behavior as an important element, and it is not necessary to follow a fixed form when concluding a contract.

5. There are great differences between the realty service contract and the entrustment contract in the contract term. Property management companies provide a systematic and professional service, which is long-term, continuous and repeated. If the duration of the property management contract signed is short, it may be because the property management company pursues short-term effects and adopts inappropriate ways to engage in property management, which is not conducive to the long-term maintenance of property management facilities. In addition, due to the particularity of the property management relationship, one party of the property management shall not terminate the contract at any time like the party entrusting the contract. On the other hand, the entrustment contract is different from the affairs handled by the client, and it is often simple and short-lived.

6. The payment methods adopted in the two contracts are different. Property management contracts are generally paid contracts, while entrustment contracts can be paid contracts or free contracts.

7. Their identification methods are different. The property service contract is obtained after bidding, and the property manager generally needs to obtain a certain qualification certificate to become the target of bidding for the property management contract. The entrustment contract is generally based on the special trust of the principal to the trustee.

From the above aspects, it can be clearly seen that there are some major differences between the property service contract and the entrustment contract, and the property management contract is far from being one of the entrustment contracts. At present, the practice of taking the entrustment contract as a property service contract in practice and theory distorts the essential characteristics of the property management contract and confuses the basic legal relationship, which is not conducive to the settlement of property management disputes in practice.

(The above answers were published on 20 13-04-25. Please refer to the actual situation for the current purchase policy. )

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