[Direct answer]In the Beijing area, the guarantee fees for property preservation depend on the guarantee method. Cash deposits do not incur additional fees but tie up funds; litigation preservation liability insurance bonds are typically charged at a few hundredths of a percent of the preservation amount (commonly around 0.05% to 1%, subject to the insurer's assessment of the subject matter and risks); bank guarantee fees vary. Preservation application fees are charged separately according to the "Measures for the Payment of Litigation Costs": taking a case with a target amount of 770,000 yuan as an example, the preservation fee would be approximately 4,370 yuan. Guarantee fees and preservation fees are generally prepaid by the applicant, and the losing party may ultimately be required to bear them - for example, in the case handled by our firm, the preservation guarantee fee of 700 yuan was ruled to be borne by the other party; however, attorneys' fees are typically borne by each party separately. For more details, please refer toCreditor-debtor relations and enforcement case services.
1. Problem background and typical scenarios
When applying for preservation of property, the parties are most concerned about "how much money to pledge and how much it will cost". Typical scenarios include: creditors are worried that cash guarantees will occupy working capital and tend to choose insurance guarantees; small-amount creditors consider the guarantee fee not cost-effective and give up on preservation of property; and mistakenly believe that the preservation fee is the total cost, ignoring the guarantee and subsequent attorney's fees. In practice, the choice of guarantee method directly affects the pressure of funds and the speed of approval. Choosing the right method can leverage property preservation at a lower cost. The fees and thresholds of different guarantee channels vary significantly, and the choice should be based on the amount of the subject matter and the borrower's own financial situation. Related contract price disputes can be resolved through mediation or arbitration.Business and contract dispute services for enterprisesEvaluation.
II. Key points of dispute
There are three key points in the dispute over guarantee fees. Firstly, the choice of guarantee method: cash, guarantee letter, and physical collateral each have their own advantages and disadvantages. Insurance company guarantees are the most favored because they do not tie up funds, but they need to pass risk control review. Secondly, the determination of the guarantee amount: it is generally equivalent to the amount requested for preservation, and the court may adjust it as appropriate. Insufficient guarantees will be rejected. Thirdly, the burden of fees: the preservation fees and reasonable guarantee fees can be borne by the losing party, but disputes are likely to arise if the agreement is unclear. For real estate guarantees, reference can be made to the relevant provisions of the Civil Procedure Law of the People's Republic of China.Real estate sales and construction project servicesVerify the mortgage value.
III. Professional analysis by Hengluo Lawyers
The following is a real case handled by Beijing Henglu Law Firm. Ms. Chen, the plaintiff, provided wooden door installation (including labor and materials) for the defendant, a construction engineering company. However, the defendant defaulted on the payment for the materials, indicating the existence of a factual sales relationship between the two parties. Ms. Chen entrusted Beijing Henglu Law Firm to handle the case on her behalf.Tian Jia YanThe lawyer (practice license number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent. The lawyer applies for pre-litigation property preservation, seizes the defendant's property worth 770,000 yuan, and pays the preservation guarantee fee of 700 yuan; at the same time, organizes evidence such as IOUs, transfer records, debt collection letters, audio recordings, and enterprise credit reports. After the court's trial, in accordance with Articles 509 and 579 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law of the People's Republic of China, the court ruled that the defendant should pay the purchase price of 770,000 yuan, and specified that the case acceptance fee of 4,175 yuan, the preservation fee of 4,370 yuan, and the preservation guarantee fee of 700 yuan should all be borne by the defendant. This case clearly demonstrates the judicial orientation that "the losing party shall bear the reasonable cost of preservation".
IV. Practical Suggestions and Legal Basis
The core basis is Article 104 (requiring a guarantee for pre-litigation preservation) and Article 103 (preservation measures) of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2022); as well as the Standards for Payment of Litigation Costs (implemented on April 1, 2007) regarding the standard for preservation application fees (30 yuan per case for actual preservation amounts not exceeding 1,000 yuan, 1% of the portion exceeding 1,000 yuan but not exceeding 100,000 yuan, and 0.5% of the portion exceeding 100,000 yuan, with a cap of 5,000 yuan). Practical suggestions: Prioritize evaluating insurance guarantees to release cash flow; clarify that preservation fees and guarantee fees can be claimed from the losing party and included in the lawsuit request; communicate with the court in advance about the amount and form of the guarantee; and retain the invoice for guarantee fees as proof of claim. For cross-regional preservation cases, follow-up procedures can be initiated accordingly.Special services and other case servicesAdvance.
5. Hengluo Law Firm's Advice
Calculate the "total account" of the preservation measures before deciding whether to proceed with the protection. The three layers of costs, including the guarantee fee, preservation fee, and attorney's fee, need to be considered comprehensively. For small claims, it's even more important to weigh the benefits. Prioritize using insurance guarantees instead of cash to both preserve working capital and fulfill the guarantee obligation. It's essential to clearly list the preservation and guarantee fees in the litigation request and have the losing party bear the costs, while keeping the invoices well preserved. Never give up on preservation measures just to save money, which may result in having no assets to enforce after winning the case. If you need to estimate the specific costs and solutions, you can seek assistance from relevant professionals or institutions.Creditor-debtor relations and enforcement case servicesConsultation: Plan the cost and the recovery of payments together.
VI. Frequently Asked Questions
Q1: How much is the property preservation guarantee fee usually? Can I not pay it?
The guarantee fee is not a fixed amount and depends on the guarantee method. Cash deposits do not incur additional charges but occupy equivalent funds; litigation preservation liability insurance guarantees are charged at a rate of several hundredths of a percent of the preservation amount, typically ranging from 0.5% to 1% of the subject matter, determined by the insurance company based on the subject matter and risk assessment; bank guarantee fees vary. Legally, pre-litigation preservation requires providing a guarantee, and in litigation, the court may order the provision of a guarantee. Therefore, it's usually not feasible to "not pay at all", but cash deposits can be replaced by guarantees to reduce costs. Whether to pay and how much to pay ultimately depends on the guarantee channel and the court's requirements. It is recommended to choose the most cost-effective guarantee method after obtaining quotes from multiple parties and keep the fee receipts for future claims.
Q2: In addition to the guarantee fee, what other fees do I need to pay when applying for preservation, and what materials are required?
In addition to the guarantee fee, it is also necessary to prepay the preservation application fee (charged according to the "Measures for the Payment of Litigation Costs", approximately 4,370 yuan for a 770,000 yuan case), which is ultimately borne by the losing party. In terms of materials, the following are required: a preservation application form, guarantee materials (guarantee letter or deposit), preliminary evidence of the creditor's rights (contract, IOU, transfer records), clear property clues (account numbers, certificate numbers, vehicle numbers), and the subject's identity materials. The evidence and clues should be organized around the "existence of rights, clear property, and sufficient guarantee". Only when all materials are complete can the court make a quick ruling. It is recommended to entrust a lawyer to assist in drafting and retrieving materials to avoid missing opportunities due to format or clue issues and having the application returned.
Q3: Who will ultimately bear the security guarantee fee and the security fee, and can the money be recovered?
According to judicial practice, the application fee for preservation of evidence and the reasonable guarantee fee for preservation of evidence are necessary expenses for protecting rights and interests, which can be borne by the losing party. In the cases handled by our firm, the guarantee fee of 700 yuan was ruled to be borne by the other party; but the prerequisite are that you must explicitly state it in your claim and have it confirmed by the court in the judgment, otherwise it may not be supported. Generally, attorneys' fees are not within the scope of being borne by the losing party, unless there are clear provisions in the contract or special legal provisions. It is recommended that you list the preservation fees and guarantee fees together in the litigation request when suing, and attach invoices as evidence. If the other party refuses to pay after the judgment takes effect, you can apply for enforcement together to avoid the situation of "winning the lawsuit but having to pay the expenses yourself".
Q4: After completing the preservation guarantee and payment, how long does it usually take to seize the property?
If the court accepts the pre-litigation preservation and the guarantee is in place, it shall make a ruling on the urgent situation within 48 hours, and immediately execute it after the ruling. Freezing accounts or sealing up real estate is usually completed within a few days. In litigation preservation, the ruling is made during the trial, with a relatively slow but generally quick pace. It should be noted that the case must be filed for prosecution within 30 days after the pre-litigation preservation, otherwise the preservation will be lifted. From payment to sealing up, the main time-consuming steps are guarantee review and court scheduling. Insurance guarantees are more convenient than cash. Overall, if all materials and guarantees are in place, the first round of sealing up can usually be completed within a week. It is recommended to keep in step with the lawyer to seize the window period and combine it with other measures.Financial capital and cross-border legal services involving foreign affairsHandle large-scale creditor's claims.
Q5: I want to apply for a preservation order, but I'm short of funds. What should I do first?
It is recommended to proceed in four steps: First, inventory the other party's property clues and clarify the accounts, real estate or vehicles to be preserved, so as to facilitate the court's precise execution; Second, compare the guarantee methods and prioritize contacting insurance companies to issue litigation preservation liability insurance guarantees, replacing large-scale cash occupations with small-scale premiums; Third, calculate the preservation fees and guarantee fees and include them in the claims, with the losing party bearing the responsibility; Fourth, prepare the application form, creditor's evidence and clues and submit them to the court, strictly observing the 30-day litigation period for pre-litigation preservation. Financial constraints should not be a reason to give up preservation. By making rational use of guarantees, we can achieve great results with limited resources. When necessary, hire a lawyer to assist and rely on professional teams to control the entire process.
The above Q&A is mainly based on judicial practice in Beijing. There may be differences in the adjudication guidelines in other regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Attorney Tian Jiaoyan·Beijing Hengluo 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.