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Can liquidated damages for late delivery be used to deduct property fees?

Legal subjectivity:

Developers have to pay liquidated damages for delaying delivery. Can it be used to deduct the owner's property fee? Next, Bian Xiao introduced the content that liquidated damages for delayed delivery can be used to deduct property fees. Welcome to read! Can liquidated damages for overdue delivery be used to deduct property fees? This is illegal. First of all, property management fees and liquidated damages cannot be offset. Property management and developers selling houses are two legal relationships and different contract subjects. Legally speaking, "liquidated damages for delayed delivery" and "property management fee" cannot offset each other. Secondly, the "debt transfer" must sign an agreement. The behavior of "assignment of creditor's rights" in contract assignment, that is, "if the debtor assigns all or part of the contractual obligations to a third party, it shall be approved by the creditor." That is to say, if the developer pays the buyer "liquidated damages for delayed delivery" and transfers it to the property management company, it will offset the "property management fee" of 1 to 2 years with the consent of the creditor-buyer. Moreover, in judicial practice, it is generally necessary to obtain the consent of the assignee of the debt-the property management company. Third, it is illegal to deduct property management fees for more than one year. Relevant documents stipulate that when collecting management fees, property management fees for many years shall not be collected in advance at one time. The behavior of developers to offset the "property management fee" for more than one year to two years with "liquidated damages for delayed delivery" is actually a disguised charge for more than one year. So this practice is illegal. Finally, the use of property management fees to offset the liquidated damages for delayed delivery may also infringe on the legitimate rights and interests of other owners in the community. Therefore, consumers should be reminded to keep the written evidence of breach of contract related to the overdue delivery of the house by the developer when they move in, so as to be protected by law when problems arise in the future. In Article 585 of the Civil Code, the parties may agree that one party shall pay a certain amount of liquidated damages to the other party when it breaches the contract, and may also agree on the calculation method of the amount of damages for breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages. Bian Xiao's summary ends here. If you have more questions in this respect, please come to consult, provide professional legal consulting services, and have a professional team of lawyers to solve your doubts.

Legal objectivity:

People's Republic of China (PRC) Civil Code

Article 577

If one party fails to perform the contractual obligations or fails to meet the contractual obligations, it shall be liable for breach of contract, such as continuing to perform, taking remedial measures or compensating for losses.

People's Republic of China (PRC) Civil Code

Article 545

A creditor may assign all or part of its creditor's rights to a third party, except in any of the following circumstances:

(a) according to the nature of the creditor's rights shall not be transferred;

(two) according to the agreement of the parties shall not be transferred;

(3) It shall not be transferred according to law.

If the parties agree that the non-monetary creditor's rights cannot be transferred, they may not confront a bona fide third party. If the parties agree that the creditor's rights are not transferable, they may not oppose a third party.