Is it legal to collect liquidated damages for property fees?

Whether it is legal for a property to collect liquidated damages for property fees needs to be judged according to specific circumstances.

First of all, as a service provider, the property company has the right to charge the owners for property services. However, the property company can't collect liquidated damages at will. Liquidated damages are usually stipulated in the contract. If the owner fails to pay the property service fee as agreed in the contract, the property company may collect liquidated damages as agreed in the contract.

Secondly, the amount of liquidated damages charged by the property company should be reasonable. If the liquidated damages charged by the property management company are too high, which is beyond the responsibility of the owner, then this behavior may constitute unjust enrichment and is illegal.

Finally, property companies should also abide by relevant laws, regulations and contractual agreements when collecting liquidated damages. If the property management company violates relevant laws, regulations or contractual stipulations and charges unreasonable liquidated damages to the owners, then this behavior is also illegal.

To sum up:

Whether it is legal for property companies to collect liquidated damages for property fees needs to be judged according to specific circumstances. If the property company collects reasonable liquidated damages in accordance with the contract and relevant laws, then this behavior is legal. However, if the liquidated damages charged by the property company are too high, or violate the relevant laws, regulations and contracts, then this behavior is illegal.

Legal basis:

The first paragraph of Article 114 of People's Republic of China (PRC) Contract Law stipulates: "The parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, and may also agree on the calculation method of the amount of compensation for losses caused by breach of contract."

Article 13 of the Price Law of People's Republic of China (PRC) stipulates: "Operators shall not commit the following unfair price behaviors: (1) colluding with each other to manipulate market prices and harming the legitimate rights and interests of other operators or consumers; (2) In order to crowd out competitors or monopolize the market, dumping at a price lower than the cost, disrupting the normal production and operation order, and harming the interests of the state or the legitimate rights and interests of other operators, in addition to handling fresh goods, seasonal goods and overstocked goods at reduced prices according to law; (3) fabricating and disseminating information about price increases, driving up prices, and driving up commodity prices too high; (four) using false or misleading price means to trick consumers into trading with them; (five) providing false price comparison, failure to perform price commitments and other price fraud; (6) buying or selling goods or providing services by raising or lowering the grade, etc., and raising or lowering the price in disguise; (seven) profiteering in violation of laws and regulations; (8) Other unfair price behaviors prohibited by laws and administrative regulations. "