Is it illegal to collect late fees for property? Is it blackmail?

It is generally not illegal to collect property late fees, not extortion. Whether there is a late fee for unpaid property fees mainly depends on whether there is an agreement in the property service contract between the owner and the property management unit. If there is a late payment clause in the contract, it shall be implemented according to the contract. If there is no agreement in the contract, the property management unit shall not collect it without authorization.

Legal analysis

The owner shall pay the property service fee in accordance with the provisions of the property service contract. Violation of the property service contract, overdue payment or refusal to pay the property service fee without justifiable reasons, the owners' committee has the right to urge them to pay within a time limit; If it fails to pay within the time limit, the property management enterprise may bring a lawsuit to the people's court. Property management companies have no right to collect late fees, and can pay liquidated damages according to the requirements of the contract. Late payment fee refers to a certain proportion of late payment fee for failing to pay taxes according to the tax payment period or repaying loans according to the repayment period. It is a measure for tax authorities or creditors to give economic sanctions to overdue parties. The late payment fee has the characteristics of statutory, compulsory and punitive. The so-called statutory means that the late payment fee is clearly stipulated by the national laws and regulations, and individuals and other enterprises and groups have no right to set it up privately, which means that the collection of late payment fee is guaranteed by the national compulsory force. There are corresponding standards for property companies to provide services, but a small number of owners and households will also establish a blacklist system if they default on property fees for a long time. After dishonest car owners enter the blacklist, they will be restricted by various aspects, such as not buying air tickets, not taking special seats in high-speed rail, and restricting consumption in hotels.

legal ground

People's Republic of China (PRC) Civil Code

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 937 A realty service contract is a contract in which a realty service provider provides realty services such as maintenance of buildings and their ancillary facilities, management and maintenance of environmental sanitation and related order within the realty service area to the owner, and the owner pays the realty fee. Property service providers include property service enterprises and other managers.