What will happen if the owner fails to pay the property fee and the property is sued?

If the owner is sued for not paying the property fee, the court will mediate. If mediation fails, the owner fails to pay the property fee and the property provides corresponding services, the people's court will order the owner to pay the property fee. After the court's decision, the owner needs to settle the property fee in time and pay the liquidated damages according to the contract. Refuses to implement, the property company may apply for compulsory execution.

Legal analysis

According to the relevant legal relationship, if the owner or the owners' meeting selects a realty service enterprise, it shall sign a written prophase realty service contract, stipulating the property management matters, service quality, service fees, rights and obligations of both parties, management and use of special maintenance funds, contract term, liability for breach of contract, etc. Property service charges should follow the principles of reasonableness, openness, and adaptability between charges and service levels, and indicate the service items and charging standards. Owners can accept the services provided by the realty service enterprise according to the stipulations of the realty service contract, and supervise the management and use of the special maintenance funds for the property parts and facilities, and the corresponding owners are obliged to pay the realty service fee on time. If the realty service enterprise fails to fulfill the stipulations of the realty service contract and causes damage to the owner, it shall bear corresponding legal responsibilities according to law. If the owner fails to pay the property fee, the property may not provide corresponding property services. If the owner still fails to pay after repeated collection, the property company may make a decision to sue the owner and ask him to pay the property fee and bear the late payment fee and liquidated damages for the property fee.

legal ground

People's Republic of China (PRC) Civil Code

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.

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.