Why should I sign a preliminary property agreement when buying a house?

In the early stage of property management, generally speaking, the current property management enterprises are designated by developers. If this is the case, it can be based on relevant regulations: the term of the previous property service contract can be agreed; However, if the realty service contract signed by the owners' committee and the realty management enterprise comes into effect before the expiration of the term, the prophase realty service contract shall be terminated. Owners can find their own property management companies. When the owner signs a property management contract with the found property management company, all relations with the existing property management company will automatically terminate. In other words, the owners can ignore the current property management company and make their own decisions. It doesn't matter if there is no owners' committee now. According to relevant regulations, the owners in the same property management area shall set up the owners' meeting and elect the owners' committee under the guidance of the real estate administrative department of the district or county people's government where the property is located. However, if there is only one owner, or if the number of owners is small and all owners agree unanimously, it is decided not to set up the owners' meeting, and the owners will jointly perform the duties of the owners' meeting and the owners' committee. In other words, when the owners' committee (owners' assembly) is not established in the community, all the owners jointly perform their duties. When the owners find a suitable property management company, as long as more than two-thirds of the owners in the community sign a property management contract with the new property management company, the contractual relationship with the current property management company will automatically terminate.

legal ground

After the expiration of Article 948 of the General Principles of Civil Law of People's Republic of China (PRC), if the owner fails to make a decision to renew or hire other property service providers according to law, and the property service providers continue to provide property services, the original property service contract will remain valid, but the service period will be indefinite. Both parties may terminate the indefinite property service contract at any time, but shall notify the other party in writing 60 days in advance.