[Direct answer]In the Beijing area, if property owners fail to pay property fees for a long time, the property service providers can sue them or apply for arbitration according to law. Article 944 of the Civil Code of the People's Republic of China (effective from January 1, 2021) stipulates that if owners violate the agreement and fail to pay property fees on time, the property service providers may urge them to pay within a reasonable period. If they still fail to pay after the reasonable period expires, the service providers may initiate litigation or apply for arbitration, but they may not adopt measures such as cutting off electricity, water, heating, and gas supplies to collect the fees. The statute of limitations for property fee claims is three years, which is calculated separately for each period. If owners have objections to the services, they should claim their rights through legal channels such as complaints and litigation. For more details, please refer to the relevant provisions.Legal services for real estate transactions and construction projects.

1. Problem background and typical scenarios

There are a large number of disputes over property fees: owners refuse to pay for a long time on the grounds of inadequate property services, poor maintenance of public areas, and security that is virtually non-existent; developers' unresolved issues have led owners to shift their dissatisfaction to property management companies; owners of vacant houses believe that they should not pay for services they do not enjoy; and there are also disputes between owners and property management companies over charging standards and shared expenses. After repeated unsuccessful attempts to collect fees, property management companies often choose to sue owners in batches to recover the arrears and breach of contract penalties. For owners, once they enter litigation, in addition to making up for the arrears, they may also have to bear breach of contract penalties and litigation fees. For more information, please refer to the relevant rules.Legal services for real estate transactions and construction projects.

II. Key points of dispute

There are five key points of contention. First, whether property owners should pay property management fees: If the property management company has provided services in accordance with the contract and relevant regulations, it is difficult for owners to refuse to pay on the grounds that they have not received or do not need the services, and vacant houses are generally not exempt from payment. Second, whether service defects can be used to contest payment: Minor and local service defects are usually not sufficient grounds for refusing to pay in full, while serious defects may lead to a reduction in property management fees or separate claims for breach of contract. Third, the statute of limitations: Property management fee claims are calculated separately according to the payment cycle, and the property management company needs to prove that the statute of limitations has not passed or that there are grounds for interruption. Fourth, whether the reminder procedure is in place: Whether a reasonable period of reminder has been carried out before suing affects whether the request can be established. Fifth, the charging standards and contract basis: The relationship between the preliminary property management service contract, the owners' covenant, and the government's guidance price. In the judicial practice of Beijing, courts usually support property management companies in recovering property management fees for the period during which services have been provided.

III. Professional analysis by Henglue Lawyers

The path of recovering overdue payments is also clearly visible in the field of construction projects. In a construction contract dispute case handled by Attorney Li Yonghui, on May 15, 2023, Company A and Company B signed a subcontract for HVAC engineering services, with a provisional estimated total price of over 5.3 million yuan including tax; as of January 2025, Company A had completed an estimated total project volume of approximately 4.9398 million yuan, accounting for 96% of the contract total price. Company B only transferred and paid 1.68 million yuan, and offset the payment with a set of housing, initially agreeing to offset 1.8777 million yuan, but later negotiating to offset 1.4083 million yuan at a 75% discount. After multiple reminders from Company A, Company B still delayed payment on the grounds that the project had not been completed and inspected, there were quality issues, and the settlement with the owner had not been finalized. After Attorney Li Yonghui sued, he argued that the commercial plaza involved in the case had already opened and put into use, and the HVAC engineering had been actually delivered and put into operation. According to Article 14 of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021), this is considered as completion, and the payment conditions have been satisfied. Quality defects and disputes over additional items should be dealt with together during the completion settlement stage and cannot be used as excuses for long-term delay in payment. The court accepted the attorney's opinion and ruled that Company B should pay the remaining project payment of over 1.1 million yuan and the overdue interest. This case shows that long-term delay in paying overdue payments on the grounds of quality issues and other reasons will not necessarily be supported. The right holder can remind, sue, and claim overdue interest. This case was handled by Beijing Henglu Law Firm.Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 944 of the Civil Code of the People's Republic of China (effective January 1, 2021) (obligation to pay property fees, procedures for reminder and prohibited methods of collection), Article 942 (obligations of property service providers such as maintenance and repair), and Article 188 (three-year statute of limitations); the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Property Service Disputes (amended in December 2020) regarding the handling of property fee disputes. Action list: First, check the property fee charging standards and service contracts to confirm the arrears range and calculation method; Second, for service defects, fix evidence by making written complaints, keeping photos and repair records, or demanding rectification and claiming fee reduction; Third, if there are indeed arrears, negotiate with the property company for installment payments or fee reductions before litigation or arbitration; Fourth, respond promptly to collection notices to avoid having to bear default penalties and litigation costs due to absence. For details, please refer to the following link:Legal services for real estate transactions and construction projects.

5. Henglue Law Firm's Reminder

In property fee disputes, a common mistake made by owners is to refuse to pay fees instead of protecting their rights, resulting in accumulated arrears and penalties, and eventually putting themselves at a disadvantage. The correct approach is to separate the two issues: pay the fees due on time, and claim rectification or compensation for inadequate services. When the property management company initiates mass litigation, owners should actively defend themselves and raise objections to the parts that exceed the statute of limitations, have unrealistic charging standards, or provide seriously reduced services. When handling similar cases in the Beijing area, it is recommended to seek legal assistance as soon as possible.Beijing Henglue Law FirmProfessional lawyers sort out the accounts and evidence to prevent small disputes from turning into major burdens.

VI. Frequently Asked Questions

Q1: If I don't pay the property management fees for a long time, will I be sued?

If a property owner fails to pay the property management fees for a long time, the property management company has the right to sue for recovery. If the property service provider has provided services as agreed, the owner's refusal to pay on the grounds of not enjoying the services or the house being vacant generally cannot be justified. If the property management company fails to receive payment within a reasonable period after being reminded, it may initiate litigation or apply for arbitration, and the owner may be ordered to pay the arrears and bear the breach of contract penalties and litigation costs. The outcome of each case depends on the performance of the service contract and the evidence. No lawyer can guarantee the outcome unilaterally.

Q2: What evidence should be prepared for property fee disputes?

The owner needs to prepare the following documents: a property service contract or an owner's covenant to confirm the service content and fee standards; proof of fees paid to confirm the outstanding payment range; evidence of service defects, such as photos and videos of public areas, repair and complaint records, and the property company's response letters; notices of payment reminders and proof of delivery; and special materials such as proof of vacancy and proof of unpaid housing fees. The property company, on the other hand, needs to provide the contract, service records, and evidence of reminders. Only when all the evidence is complete can the responsibilities be clearly defined.

Q3: How much does it cost to litigate a property fee dispute?

The litigation fees are paid in accordance with the "Measures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007). The litigation fees are accumulated and paid in stages based on the amount of the litigation subject. The litigation fees for property fee disputes are usually not high, ranging from dozens of yuan to hundreds of yuan. In some cases where the plaintiff wins the lawsuit, the litigation fees are shared proportionally. The attorney's fees are determined through negotiation between the law firm and the client, and the fees for bulk property cases are usually lower. If the owner loses the lawsuit, they also need to bear the breach of contract penalties according to the contract agreement, and the actual cost may far exceed the unpaid fees themselves.

Q4: How long does it usually take to adjudicate a property fee dispute?

The litigation period is generally relatively short: the facts of property fee disputes are clear, and the first-instance summary procedure and the ordinary procedure are concluded within three months and six months respectively. Most cases have results within three to six months. It should be emphasized that the three-year statute of limitations is calculated separately for each period of property fees, and the property management company may only be able to recover the part within the statute of limitations; owners should not delay in order to avoid defending, and they should respond to the lawsuit in time to put forward effective defenses.

Q5: What should I do if the property management company urges me to pay the fees or sues me?

Three steps to proceed: First, immediately check the accounts and distinguish between undisputed arrears and disputed parts. For the undisputed parts, make up for the payments in time to avoid the escalation of penalties and litigation costs; Second, fix the evidence of service defects, file a written complaint to the property company and keep the records, and if necessary, report it to the competent department; Third, actively respond to the collection notice or court summons after receiving them, and defend against issues such as statute of limitations, charging standards, and serious reduction of services based on the facts. If necessary, hire a professional lawyer to handle the case.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Attorney Li Yonghui·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. In the event of a dispute, please consult a practicing lawyer in a timely manner.