Is it illegal to collect late fees for property?

It is illegal to collect late fees for property.

The law does not give property the right to collect late fees. Although the owner has the obligation to pay the property fee, if the owner fails to pay the property fee on time, the property management company can only make a reminder. If the owner fails to pay the overdue payment, the property management company can sue the owner or apply for arbitration, but it cannot collect the late payment fee privately, nor can it stop water and power. The owners' committee shall conclude a written realty service contract with the realty service enterprise selected by the owners' congress. Property service contracts shall stipulate property management matters, service quality, service fees, rights and obligations of both parties, management and use of special maintenance funds, property management premises, contract term, liability for breach of contract, etc. Property companies have no right to collect late fees, but may require the owners to pay liquidated damages in accordance with the contract. Late payment refers to the measures taken by tax authorities or creditors to increase the amount of late payment according to a certain proportion according to the number of days of delay for overdue parties who fail to pay taxes or repay loans according to the repayment period. The late payment fee is legal, compulsory and punitive. The so-called legal means that the late payment fee is a fund clearly stipulated by national laws and regulations, and individuals and other enterprises and groups have no right to set it up privately; Compulsory means that the collection of late fees is guaranteed by the state.

legal ground

People's Republic of China (PRC) Civil Code

Article 286 The owner shall abide by the laws, regulations and management regulations, and the relevant actions shall meet the requirements of saving resources and protecting the ecological environment. For property service enterprises or other managers to implement emergency measures and other management measures implemented by the government according to law, the owners shall cooperate with them according to law. The owners' assembly or the owners' committee has the right to ask the perpetrator to stop the infringement, remove the obstruction, eliminate the danger, restore to the original state and compensate for the loss of any act that damages the legitimate rights and interests of others, such as dumping garbage at will, discharging pollutants or noise, raising animals illegally, building illegally, occupying passages illegally, refusing to pay property fees. If the owners or other actors refuse to perform relevant obligations, the parties concerned may report or complain to the relevant administrative departments, which shall deal with them according to law.

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.