Is it legal to have liquidated damages for property fees?

The owner may agree with the property management company that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, or may agree on the calculation method of the compensation amount for breach of contract. But it can't exceed the amount stipulated by law, which is generally 30% of the losses caused. But the premise must be that there is such a liability for breach of contract, and the liquidated damages agreed in the property contract are legal. The liability for breach of contract in the Property Contract stipulates that when one party fails to perform its contractual obligations, the other party may require the defaulting party to bear certain liability for breach of contract. There is no liquidated damages in the property contract, and the specific liquidated damages can be determined according to the actual losses of the parties. According to the law on liquidated damages in the property contract, both parties can freely negotiate to determine the property fee, and there are also liquidated damages clauses.

Property management disputes are handled in the following ways:

1, the property management company can negotiate with the owner first to negotiate a solution to the dispute;

2. If negotiation fails, grassroots organizations may be invited to mediate;

3. If negotiation or mediation fails, you can bring a lawsuit to the court or directly bring a lawsuit to the court;

4. If there is an arbitration clause in the realty service contract, you can directly apply for arbitration.

To sum up, whether the property fee is charged as liquidated damages and whether it needs to be written into the contract can be freely decided by both parties. The liquidated damages shall be determined by both parties through consultation, and the amount is not limited. Liquidated damages are generally determined according to the expected losses caused by one party's breach of contract.

Legal basis:

Article 582 of the Civil Code of People's Republic of China (PRC)

If the performance is not in conformity with the agreement, it shall bear the liability for breach of contract in accordance with the agreement of the parties. If the liability for breach of contract is not stipulated or clearly stipulated and cannot be determined according to the provisions of Article 510 of this Law, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, rework, replacement, return, price reduction or remuneration according to the nature of the subject matter and the size of the loss.

Article 588

If the parties agree on both liquidated damages and deposit, when one party breaches the contract, the other party may choose to apply the liquidated damages or deposit clause.

If the deposit is not enough to make up for the losses caused by one party's breach of contract, the other party may demand compensation for the losses exceeding the deposit amount.

Article 585

The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, and may also agree on the calculation method of the amount of compensation for breach of contract.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.