Laws of the Guangdong Province

Measures of the Shenzhen Special Economic Zone

on the Administration of the Property Management Trade

(Promulgated by Order No. 74 of the Shenzhen Municipal People' s Government of July 20, 1998, revised according to Order No. 135 of the Shenzhen Municipal People' s Government of August 26, 2004)

Chapter I General Provisions

       Article 1 In order to strengthen the supervision and administration of the property management trade, set the standards for the conducts of property management enterprises, maintain the market order of property management services, and promote the healthy development of the property management trade, these measures are hereby formulated in accordance with the law and regulations and in compliance with the practical conditions of the Shenzhen Special Economic Zone (hereinafter referred to as the Special Zone).

       Article 2 Those who are engaged in the management services in the Special Zone for various properties such as residential quarters, industrial sections, commercial residential buildings, office buildings, etc. and auxiliary public facilities, equipments, public places shall abide by these measures.

       Article 3 Property management services shall follow the principle of socialization, professionalization, and enterprise-like operation, keep properties and urban environment clean and beautiful, guarantee the safety in using of properties, and safeguard the legitimate rights and interests of proprietors and non-proprietor users.

       Article 4 The administrative department of housing of the Shenzhen Municipal People' s Government shall be the responsible department for the property management trade (hereinafter referred to as the municipal responsible department), and direct, supervise and administer the property management trade according to law.

       The administrative department of housing of a district people' s government (hereinafter referred to as the district responsible department) shall be responsible for the supervision and administration of the property management trade within its own jurisdiction under the direction of the municipal responsible department.

       Article 5 The Shenzhen Municipal Trade Association of Property Management shall be a self-disciplinary organization of the property management trade and discharge its duties according to these measures.

Chapter II Property Management Enterprises

       Article 6 The property management enterprises referred to in these measures shall mean the business corporations established according to law, including the enterprises undertaking property management only and those undertaking such services as part of their business, which provide professionalized, integrated management services for various properties such as residential quarters, industrial sections, commercial residential buildings, office buildings, etc. and auxiliary public facilities, equipments, public places.

       Article 7 Property management enterprises shall not assign their Qualification Certificate for Property Management or do so in disguised form such as lease, attachment, loan. If a property management enterprise changes its name, splits, merges or has other changes concerning industrial and commercial registration, it shall once again go through the formalities for record and have its qualification certificate examined and approved.

Chapter III Public Bidding and Offering a Bid in Property Management

       Article 8 Anyone entrusting a property management enterprise with management services for a property shall hold a public bidding to determine such an enterprise except those satisfying one of the following conditions:

(1)   A property is used by a unit in charge of development and construction itself;

(2)   Within a property management section, the total construction area of a multi-story property is less than 50,000 square meters, or the total construction area of a high-rise property is less than 20,000 square meters, or the total construction area of a mixed multi-story, high-rise property is less than 30,000 square meters.

The limits of the property management section referred to in the previous section

shall be determined by the municipal responsible department jointly with the related departments.

       Article 9 If a property has not been handed over for use, or a property has been handed over for use, but the proprietors' management committee has not been set up, the unit in charge of development and construction shall be responsible for organizing a public bidding for property management services; if a proprietors' management committee has already been set up, the committee shall be responsible for organizing a public bidding  for property management services unless there is a stipulation in law, regulations that a unit in charge of development and construction shall be responsible for property management services within a certain time limit.

       When a proprietors' management committee is organizing a public bidding, the decision shall be made by a general meeting of proprietors after discussion.

       A bid organizer shall have the following rights:

(1)   to work out public bidding documents, organize the activities of a public bidding;

(2)   to select and determine the bidders who satisfy the qualification requirements;

(3)   to determine the measures to comment and decide on a bid according to the principles of bid comments;

(4)   to select a bid-winner;

(5)   the other rights which shall be enjoyed according to law.

Article 10   When organizing a public bidding for property management

services, a bid organizer shall establish a public bidding agency. The agency shall have the representatives of the municipal, district responsible departments to participate.

       The public bidding agency shall be responsible for the specific operation of the public bidding, examination and finalization of a minimum bid, introduction of the measures to comment and decide on a bid and of the opinion on the decision on a bid.

       Article 11 A bid organizer shall make public bidding documents objective and impartial, and solicit wide-ranging opinions from proprietors and non-proprietor users.

       The public bidding documents referred to in the previous section shall include a public bidding announcement, a guide to public bidding, conditions to sign a contract of management by mandate and terms of an agreement. The public bidding announcement shall include the following items:

(1)   The basic conditions of a planned and constructed property, including the area of occupied land, construction area, ownership, commercial housing and management housing, special fund for public facilities and maintenance fund for housing per se, public facilities, equipments and public places, gardening and afforesting, community facilities for culture and entertainment, etc.;

(2)   The items and requirements of property management;

(3)   The form and basis of a tender document;

(4)   A bidder' s qualifications and conditions;

(5)   The time and place to give an organized explanation of the public bidding documents and to conduct a field examination of the property;

(6)   The place and deadline to submit tender documents;

(7)   The time and place to open bids and to comment on bids;

(8)   The other items that need an explanation.

Article 12 A public bidding for property management services may take the

forms of open bidding, invited bidding. Anyone satisfying one of the following conditions may take the form of negotiated bidding:

(1)   There are special requirements for use of a property in terms of maintaining secrecy and safety;

(2)   Foreign governments, individuals, international financial organizations, and the compatriots of Hong Kong, Macao, and Taiwan have made capital donation to construction and been explicit in asking for negotiated bidding.

The negotiated bidding referred to in the previous section shall mean that a bid

organizer consults with more than two (including two) property management enterprises on giving out a contract of specific property management services and selects the best of them as bid-winner.

       Once the form of a public bidding has been chosen, it shall not be changed halfway.

       Article 13 When taking the form of open bidding, a bid organizer shall issue its public bidding notice to the public one month in advance by newspapers, journals, broadcasting, television, or other channels, and report to the municipal, district responsible departments for record; when taking the form of invited bidding,  a bid organizer shall issue its bid-invitation letter to more than three (including three) qualified property management enterprises, and report to the municipal, district responsible departments for record.

       The public bidding notice or bid-invitation letter shall include the following items:

(1)   The name and address of the bid organizer;

(2)   The name, category, use, location, construction area of the property to be bidden for;

(3)   The place and deadline to offer a bid;

(4)   The measures, time, place and the related expenses to obtain public bidding documents.

Article 14 The property management enterprises which participate in bidding

shall work out their tender documents according to the items and requirements stipulated by the public bidding documents. A tender document shall include the following main items:

(1)   The property management office' s set-up plan, operation procedure, and various rules and regulations on management;

(2)   The assignment plan of the management service personnel;

(3)   The allocation plan of housing units and other materials, equipments for management services;

(4)   The planned budget of the income and expenses of management services;

(5)   The standards and promises of management services item by item;

(6)   The plan of the community' s cultural services;

(7)   The concept of the management service model, etc.

Article 15 The property management enterprise which was entrusted by the unit

in charge of development and construction with the management services of the same property shall have the preference to be chosen as a bid-winner among those with equal conditions.

       If there are more than two enterprises referred to in the previous section, the enterprise which was most recently entrusted with the management services shall have the preference to be chosen as a bid-winner.

       Article 16 A public bidding for property management services shall follow the principle of openness, fairness, impartiality, honesty, and trust. Both parties of inviting and offering a bid shall not practice fraud, collude maliciously, do damage to the legitimate rights of the other party or other bidders.

Chapter IV Property Management Services

       Article 17 A unit in charge of development and construction or a proprietors' management committee shall sign a contract of management by mandate with a property management enterprise, and report to a district responsible department for record.

       The municipal responsible department shall jointly with the department of industrial and commercial administration formulate a model contract of management by mandate.

       Article 18 A property management enterprise shall open a management office within the limits of the property under its management by mandate, and provide professional management services concerning the following items, proprietors and non-proprietor users shall cooperate:

(1)   The reasonable use, maintenance, and tendance of a building per se and its auxiliary facilities;

(2)   The use, maintenance, and management of auxiliary public facilities, equipments, and public places such as firefighting facilities, elevators and other electric equipments, ditches, canals, ponds, wells, roads and streetlights, parking places, garages, etc.;

(3)    The assistance to the related departments in maintaining the community' s public order and security order;

(4)   The direction and management of vehicles' driving and parking according to the related rules;

(5)   Cleaning, sterilizing, and maintaining for sanitation;

(6)   The maintenance, tendance, and management of gardens and green belts;

(7)   The other property management services stipulated by the law, regulations, and contract of management by mandate.

If a property management enterprise provides safekeeping for the special

possessions of proprietors and non-proprietor users, a separate contract of safekeeping shall be signed to define the relationship of safekeeping.

       Article 19 A property management enterprise may hold a public bidding to engage a specialized company to provide special services for electromechanical equipments, sanitation, gardening and afforesting, project maintenance, etc., but shall not assign the responsibility of property management as a whole to other units or individuals by contracting, leasing or in the other way.

       Article 20 Property management enterprises shall comply with the related compulsory standards of the state in providing property management services; meet the trade-wide standards set by the municipal responsible department if there are not compulsory standards of the state. Property management enterprises shall be encouraged to adopt the foreign countries' standards of advanced management services and to raise the level of management services.

       Article 21 The service charge of property management shall be composed of the cost of property management, the commission of the property management enterprise, and statutory taxes and dues. The commission of property management shall not be more than 10% of the cost of property management.

       The following items shall be entered into the cost of property management, but must not be calculated for the second time:

(1)   The wages and benefits of the personnel of the property management office;

(2)   The expenses of cleaning and sterilizing;

(3)   The expenses of security and safeguard;

(4)   The expenses of the routine maintenance of auxiliary public facilities;

(5)   The expenses of the maintenance and tendance of gardens and green belts;

(6)   The depreciation of the fixed assets for property management and the administrative expenses;

(7)   The expenses of the water and electricity for public use;

(8)   The expenses of the operation and maintenance of elevators;

(9)   The expenses of central air conditioning.

Article 22 The colleting of the service charge of property management shall, in

compliance with the law, regulations, rules, and contracts of management by mandate, follow the principle of reasonableness, openness, and correspondence between the level of management services and social affordability. The specific rates shall be set by the proprietors' management committee and the property management enterprise through consultation, and put into practice after being discussed at the general meeting of proprietors.

       The municipal responsible department and the municipal administrative department of prices may, in compliance with the basic principles of the state law on prices and the practical conditions of the property management services in the Special Zone, formulate the classified guiding standards for the service charge of property management, explicitly set the corresponding base prices and the range of fluctuation, and property enterprises shall comply with and implement these stipulations.

       Article 23 A property management enterprise shall announce its rates of the service charge of property management and the items of its services in advance.

       If a unit in charge of development and construction conducts property management itself according to law, regulations, or entrusts a property management enterprise with management services, it shall announce the rates of service charge and the items of services when selling the property, and hold the liability to pay for the service charge before the property is put into use.

       Article 24 The service charge of property management shall be collected by a property management enterprise from proprietors. The other units and individuals shall not collect the charge of the same item or the same kind again.

       Proprietors shall pay the service charge of management in time.

       Article 25 The income and expenses of property management shall be announced at least once every 3 months, and accept the inquiry and supervision of proprietors or a proprietors' management committee.

       Article 26 A property management enterprise shall, in accordance with the contract of management by mandate or the related law, regulations, conduct the operation management of the commercial housing owned by all proprietors and other auxiliary public facilities, equipments, and fields, the income from such management shall be used for the property management services and may not be misappropriated for other purposes.

       The income and expenses of the operation management referred to in the previous section shall be announced at least once every 3 months, and accept the inquiry and supervision of proprietors or a proprietors' management committee.

       Article 27 A property management enterprise shall conduct independent accounting for the service charge of property management within one property management section and the income from the operation management which should be used for property management services according to the rules. After deducting the cost of property management services, the commission of the property management enterprise, and the statutory taxes and dues, the balance shall be transferred into this property management section' s fees for the next year' s management services, and may not be withdrawn without authorization or misappropriated for other purposes.

       Article 28 If the special fund for public facilities, the maintenance fund of building per se have bee established within a property management section according to law, regulations, the property management enterprise shall use them for the stipulated purposes and must not misappropriate them for other purposes.

       The income and expenses of the funds referred to in the previous section shall be announced at least once every 3 months, and accept the inquiry and supervision of proprietors and a proprietors' management committee.

       Article 29 When a property management enterprise, within the reasonable time period, conducts inspection and examination of the property, or does maintenance, repair, tendance or reconstruction of public auxiliary facilities, equipments, public places, and the sections and facilities in common within the building per se, or supervises the property decoration according to the rules, proprietors and non-proprietor users shall provide convenience and accept supervision, and must not refuse or obstruct such work without reason. The specific items and time of inspection and examination, the items of maintenance, repair, tendance, or reconstruction and the time and places of such work shall be all announced in advance.

       If there are different opinions on the items of maintenance, repair, tendance or reconstruction referred to in the previous section between proprietors, non-proprietor users and property management enterprise, the municipal, district responsible departments shall make a decision and put it into implementation; if there is any question about the cost of maintenance, repair, tendance or reconstruction, an inquiry may be made of the property management enterprise, and the property management enterprise shall give a reply within 7 days after receiving the inquiry.

       Article 30 If proprietors and other non-proprietor users have any question about the rates and items of services, the income and expenses of property management, they may file complaints to the municipal, district responsible departments and the administrative departments of prices; the municipal, district responsible departments and the municipal, district departments of prices shall conduct investigations and impose punishments promptly after receiving complaints, and inform complainants in writing of the results of investigations and punishments.

Chapter V Trade Associations of Property Management Services

       Article 31 The Municipal Trade Association of Property Management shall be the legal person of a self-disciplinary mass organization of the property management trade registered according to law. Its main duties shall be:

(1)   to formulate the standards of conduct and the norms of morality of the property management trade;

(2)   to organize professional training, examinations for the personnel employed in the property management trade;

(3)   to accept the complaints about the members of the association, organize investigations, and make suggestions to the related departments on how to deal with the complaints;

(4)   to report to the municipal responsible department the opinions, suggestions, and requirements from the property management trade, protect the legitimate rights of the property management trade;

(5)   to mediate the disputes within the trade;

(6)   to assist the municipal, district responsible departments in honoring those of excellence through the quality appraisal of the property management services;

(7)   to handle the other matters entrusted with by the responsible departments.

Article 32 The property management enterprises which are established according

to law and other organizations which are engaged in property management may apply to participate in the Municipal Trade Association of Property Management and become the group members of the Association; the individuals who are engaged in the services and theoretical research of property management may apply to participate in the Municipal Trade Association of Property Management and become the individual members.

       The members shall abide by the constitution of the Municipal Trade Association of Property Management and pay the membership fees according to the rules.

       Article 33 The congress of the members of the Municipal Trade Association of Property Management shall be the body of the highest authority of the Association, the council shall be the executing body of the congress of the members. The authority of the congress of the members and the council shall be defined by the constitution.

       Article 34 The members of the council shall be elected by the Association. The total number of the members shall be defined by the constitution.

Chapter VI Legal Liabilities

       Article 35 If anyone who has no Qualification Certificate of Property Management is engaged in property management without authorization, the municipal, district responsible departments shall order correction by a deadline; if the correction has not been done after the deadline, a notice of criticism shall be circulated, and a fine less than the amount twice as much as the illegal gains from the management may be imposed also.

       Article 36 If a property management enterprise has failed to submit its Qualification Certificate of Property Management for annual examination, the municipal, district responsible departments shall order correction by a deadline; if the correction has not been done after the deadline, Qualification Certificate of Property Management shall be taken back, and a fine less than the amount twice as much as illegal gains from the management may be imposed also.

       Article 37 If Qualification Certificate of Property Management has been assigned, or assigned in disguised form such as lease, attachment, loan, the municipal, district responsible departments shall order correction by a deadline and circulate a notice of criticism; if the correction has not been done after the deadline, Qualification Certificate of Property Management shall be taken back, and a fine less than the amount twice as much as illegal gains from the management may be imposed also.

       Article 38 If the determination and entrustment of a property management enterprise with property management services, in violation of these measures, has not been done through inviting and offering a bid, the entrustment shall be invalid, and the municipal, district responsible departments shall order correction by a deadline; if the correction has not been done after the deadline, a fine of more than 20,000 but less than 50,000 RMB shall be imposed respectively on the entrusting person and the property management enterprise which accepted the entrustment.

       Article 39 If the negotiated bidding, in violation of these measures, has been taken without approval from the municipal responsible department, the public bidding shall be invalid, and the municipal, district responsible departments shall order correction by a deadline; if the correction has not been done after the deadline, a fine of more than 20,000 but less than 50,000 RMB shall be imposed respectively on the entrusting person and the property management enterprise which accepted the entrustment. If an open bidding or invited bidding has not been reported to the municipal, district responsible departments for record, the municipal, district responsible departments shall order correction and circulate a notice of criticism.

       Article 40 If both parties of inviting and offering a bid, in violation of these measures, have practiced fraud and maliciously colluded, the conduct of inviting and offering a bid shall be invalid, the municipal, district responsible departments shall give a warning, and a fine of more than 50,000 but less than 100,000 RMB shall be imposed respectively; if there has been any damage, liability to compensate for the damage shall be held; if a crime has been constituted, the criminal responsibility shall be investigated into according to law.

       Article 41 If a property management enterprise, in violation of these measures, has increased the items of chargeable management services or raise the rates of its charge without authorization, the extra charge shall be returned, and the municipal, district responsible departments shall order correction by a deadline; if the correction has not been done after the deadline, a notice of criticism shall be circulated, and a fine less than the amount five times as much as the extra charge shall be imposed; if there has been any damage to the others, the liability to compensate for the damage shall be held.

       Article 42 If a property management enterprise, in violation of these measures, has misappropriated the operation income which should be used for property management services, or withdrawn the management service fees, special service funds without authorization or misappropriated them for other purposes, the municipal, district responsible departments shall order correction by a deadline and circulate a notice of criticism; if the correction has not been done after the deadline, a fine less than the amount twice as much as the misappropriated funds shall be imposed; if there has been any damage, the liability to compensate for the damage shall be held; if a crime has been constituted, the criminal responsibility shall be investigated into according to law.

       Article 43 If the fixed service charge, in violation of these measures, has not been paid in time, the property management enterprise may require a payment by a deadline, a fine for delaying payment as much as one thousandth of the overdue payment per day shall be imposed in case of failure to pay by the deadline; if the service charge has not been paid for three consecutive months, payment shall be pressed for according to law, regulations, and the contract of management by mandate, or an application for an order of payment shall be filed to the people' s court.

       If a property management enterprise has signed contracts with water-supplying, electricity-supplying, gas-supplying units to be entrusted with meter-reading and fee-collecting, the corresponding measures may be taken to press for payment according to the contracts.

Chapter VII Supplementary Provision