Is it illegal for property companies to collect late fees?

Property late fees are stipulated by law in the contract, and the property service contract is a contract in which the property service provider provides property services for the owner and the owner pays the property fee, which is legally binding on the owner. The owner shall abide by the terms of the contract, but the property service provider shall not stop power supply, water supply, heat supply and gas supply to demand payment of property fees.

legal ground

Article 937 of the Civil Code of People's Republic of China (PRC)

A property service contract is a contract in which the property service provider provides the owner with property services such as the maintenance of the building and its ancillary facilities, the management and maintenance of environmental sanitation and related order, and the owner pays the property fee.

Property service providers include property service enterprises and other managers.

Article 944

The owner shall pay the property fee to the property service provider as agreed. If the property service provider has provided services in accordance with the agreement and relevant regulations, the owner shall not refuse to pay the property fee on the grounds that he has not accepted or does not need to accept the relevant property services.

If the owner fails to pay the property fee within the time limit in violation of the agreement, the property service provider may urge him to pay it within a reasonable period of time; If the payment is not made within a reasonable period, the property service provider may bring a lawsuit or apply for arbitration.

The property service provider shall not stop power supply, water supply, heat supply and gas supply to demand payment of property fees.