[Direct answer]In the Beijing area, the publicity comes first and the audit follows. Those who refuse to cooperate can be sued. Community public income refers to the income generated from the use of the owners' common areas, such as elevator car advertisements, external wall advertisements, public space leasing, public parking fees, and express delivery cabinet site fees, etc. According to the Civil Code, the income generated from the use of the owners' common areas, after deducting reasonable costs, belongs to all owners. The property service provider shall regularly disclose the operation and income of the common areas to the owners. If the owners have doubts about the income and expenditure, they may request the property to provide detailed information and supporting documents in writing. Upon the joint decision of the owners, they may entrust a third-party audit institution to audit the public income accounts. If the property refuses to disclose information or cooperate, the owners may file a complaint with the local street office or the housing and urban-rural development department, or initiate a lawsuit to assert their right to information and demand the transfer of the income.
1. Problem background and typical scenarios
The income from advertising spaces, parking fees, and venue rentals in residential communities is considerable each year, but owners often never see the financial statements. Property management companies often use public revenue as their own income, or only disclose a general figure without detailed supporting documents. When owners demand transparency, property management companies often evade responsibility by citing "commercial secrets" or "funds have been used for community repairs". The ownership of public revenue, its disclosure, and auditing are common starting points for owners to protect their rights, and are also high-incidence areas of property management disputes.
II. Key points of contention
Firstly, the scope and ownership of public benefits. Secondly, the public disclosure obligations of property service providers and the content of the disclosure. Thirdly, whether owners can apply for an audit, who should commission the audit, and the source of the audit fees. Fourthly, the remedies available when property service providers refuse to disclose information or cooperate with the audit process.
III. Professional analysis by Henglue Law Firm
The first layer, ownership rules: According to Articles 271 and 282 of the Civil Code, owners have the right to jointly own and manage the common areas outside their exclusive portions; the income generated from the use of the common areas belongs to the owners after deducting reasonable costs. The second layer, disclosure obligations: Property service providers shall regularly disclose the operation and income of the common areas to owners; local property management regulations typically also require disclosure of the public revenue and expenditure and the use of maintenance funds for the previous year. The disclosure should be true, complete, and verifiable. The third layer, audit path: Owners have the right to review and copy account information related to public revenue, and property service providers shall cooperate; upon the joint decision of owners, they may commission qualified third-party agencies to conduct audits. The audit scope, period, and funding sources shall be specified in the decision, and the expenses are generally funded from public revenue. The fourth layer, remedies for non-cooperation: If property service providers refuse to disclose information or provide false account materials, owners may file complaints with neighborhood offices, township governments, and housing and urban-rural development authorities, who shall order rectification. Owners may also initiate litigation to request the disclosure of revenue and expenditure and the transfer of income belonging to owners. If there is embezzlement, they may also claim restitution and compensation for losses. Henglue Tip: The key to resolving disputes over public revenue lies in evidence. Owners should fix advertising contracts, lease agreements, charging records, and disclosure materials as early as possible to form a verifiable chain of evidence.
IV. Practical suggestions and legal basis
The first step is to request the property service provider in writing to publicly disclose the detailed income and expenditure of public revenue and retain the delivery receipt. The second step is to verify the contracts such as advertising, venue leasing, and parking fees against the original charging receipts and compare the disclosed figures. The third step is to entrust a third-party agency to conduct an audit upon the joint decision of the owners, specifying the audit scope, period, and source of funds. The fourth step is to file a complaint with the district office or housing authority or initiate litigation to assert the right to information and the transfer of revenue if the property service provider refuses to cooperate. The main legal basis: Articles 271 and 282 of the Civil Code of the People's Republic of China (effective January 1, 2021); and the relevant provisions on the disclosure of public revenue in the Beijing Municipal Property Management Regulation (effective May 1, 2020). The specific application shall be subject to the currently effective regulations.
5. Henglu Law Firm's Reminder
There are three key points regarding public revenue: the income from common areas shall be allocated to all owners after deducting reasonable costs; property service providers must regularly make public disclosures; owners may jointly decide to commission an audit, and those who refuse to cooperate can file complaints or initiate legal proceedings. In cases involving public revenue and property disputes, parties may seek resolution through legal channels.Real estate transactions and construction projectsFor services that require an overall solution, involving property service contracts, they can be combined with other services to form a comprehensive package.Business and contract disputes in enterprisesFor plates involving profit returns and execution, you can refer to the following for reference:Creditor's rights and debts, and enforcementFor any questions or difficult situations, please feel free to consult us.Special servicesTeam.
VI. Frequently Asked Questions
Q1: What does "public benefits" include?
It usually includes elevator car and exterior wall advertising revenue, public space and housing rental revenue, public parking fees, express locker and base station site fees, and public facility operation revenue, etc. Any income generated from the common areas of the building, after deducting reasonable costs, belongs to the owners collectively.
Q2: What should I do if the property management company refuses to disclose its financial statements?
First, request the public disclosure in writing and retain the proof of delivery; if the disclosure is still not made, you can file a complaint with the sub-district office, township government and housing and urban-rural development department, and they will order the rectification; if necessary, you can file a lawsuit to request the public disclosure of the detailed income and expenditure.
Q3: Can owners hire an audit company on their own?
After a joint decision by the owners, the audit can be entrusted to a qualified third-party institution. However, if an individual owner entrusts the audit without authorization, the property management may not cooperate. It is recommended to proceed with the audit through a joint decision by all owners.
Q4: Who will bear the audit fees?
Generally, the expenses are covered by public revenue; if it is found that the property is subject to misappropriation or concealment of income, the owner may be required to bear the corresponding expenses. The specific division of expenses can be agreed upon by the owners through joint decision-making.
Q5: Can the property management company be held accountable if it misappropriates public revenue?
Yes. The owner can request the property management company to hand over the income belonging to the owner, and if there is embezzlement, the owner can claim the return of the embezzled funds and compensation for the losses. If the circumstances are serious, the owner can report the case to the competent authority, and those who commit crimes will be held accountable according to law.
The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.