[Direct answer]No. According to Article 944, Paragraph 3 of the Civil Code (effective January 1, 2021), property service providers are not allowed to suspend electricity, water, heating, or gas supplies to collect unpaid property fees. The counterparties to water and electricity supply contracts are owners and water and electricity supply companies, and the property management company has no right to cut off water and electricity supplies to force owners to pay arrears. If owners fail to pay the fees, the property management company may issue a written reminder and then file a lawsuit to claim the property fees and breach of contract penalties in accordance with Article 944. If owners suffer losses due to the suspension of water and electricity supplies, they may claim compensation in accordance with Article 1165. For specific protection measures, please consult an attorney.Legal services for real estate transactions and construction projectsAndBeijing Henglu Law Firm.

1. Problem background and typical scenarios

The difficulty in collecting property fees and the overstepping of fee collection methods often go hand in hand. Common scenarios include: owners refusing to pay property fees due to dissatisfaction with greening, cleaning, and security services, and the property management company directly cutting off water and electricity supplies; in old residential areas, the property management company collects water and electricity bills on behalf of residents, and after arrears, the property management company restricts the purchase of electricity and water; shop owners are threatened with power cuts to force them to pay arrears. For owners, water and electricity cuts directly affect their basic living and business operations; for property management companies, they often mistakenly believe that "owners owe fees first, so it's reasonable to cut off supplies". Both parties need to understand that property fee disputes belong to property fee disputes, and cutting off water and electricity supplies is another path explicitly prohibited by law. Confusing the two will only escalate conflicts and reverse responsibilities.

II. Key points of contention

  • Characterization of the act of interrupting service: The parties to the property service contract are the owners and the property management company, and the parties to the water and electricity supply contract are the owners and the water and electricity supply companies. If the property management company suspends water and electricity supplies to collect fees, it violates the prohibitive provisions of Article 944, Paragraph 3 of the Civil Code and constitutes a breach of contract. If it causes losses, it may also constitute infringement.
  • The boundary of the defense against arrears in payment: If the owner refuses to pay on the grounds of service defects, the court usually only reduces the property fees in part when the service quality is really defective. The claim of full refusal to pay is generally not supported. Long-term arrears in payment will also continue to accumulate default penalties.
  • The boundaries of agency and transfer of supply: Where a property management company is entrusted to collect water and electricity bills or manage secondary water supply facilities, its authority is limited to collecting and paying bills and daily maintenance. It is not allowed to use the suspension of supply as a means of collecting fees. The responsible party can combine this with other measures to ensure the smooth collection of fees.Legal services for real estate transactions and construction projectsVerify and clarify.

III. Professional analysis by Henglue Lawyers

There are three practical observations of Henglu Law Firm in handling property service contract disputes. Firstly, in cases involving water and electricity cuts, there is almost no chance of victory for the property management company: Article 944 Paragraph 3 is a clear prohibitive provision. The court generally disapproves of the property management company's practice of "cutting off supplies first and negotiating later". After the owners fix the fact of supply cutoff with photos, videos, and repair records, the cases usually end with the property management company restoring supplies and compensating for losses. Even if the water and electricity are managed by the property management company, cutting off supplies is not a legal means of collecting fees. Secondly, the reverse risks on the owners' side are also worth noting: for those who fail to pay property fees for a long time on the grounds of poor service, the accumulated principal and penalties will far exceed expectations. It is normal for the court to support the payment of the principal of property fees, and service defects usually only result in a slight reduction in fees. It's too late to raise objections after being sued. Thirdly, a good solution is to handle the accounts separately: pay the undisputed property fees on time, raise service quality issues in writing and request rectification, and keep communication records. This way, you can not only protect your money but also maintain a clear position in litigation. In communities where water and electricity companies directly collect fees from owners, the property management company has no right to cut off supplies. If there is a supply cutoff, they should first verify the reason with the supply company.

IV. Practical suggestions and legal basis

At the legal basis level: Article 944 of the Civil Code (effective January 1, 2021) stipulates that owners shall pay property fees in accordance with the agreement. If the property service provider has provided services as agreed, the owner shall not refuse to pay on the grounds of not having received or not needing to receive the relevant services. Paragraph 3 of the same article clearly stipulates that the property service provider shall not adopt measures such as cutting off electricity, water, heating, and gas supplies to urge payment of property fees. Article 44 of the Property Management Regulation (amended on March 19, 2018) stipulates that water and electricity supply units shall collect fees from end users, and the property management entrusted to collect fees on behalf of the owner shall not add a surcharge. The legal path for the property management to recover unpaid fees is to issue a written notice and then file a lawsuit to claim property fees and the agreed penalty; if the owner suffers losses due to the suspension of services, he/she may claim compensation for infringement according to the fault principle in Article 1165 of the Civil Code. Practical suggestions: In the event of water and electricity supply suspension, take photos and videos of the notice, the scene, and the restoration time immediately, call the water and electricity supply and property management hotlines to report and leave a record, and call the police to obtain a record if necessary; keep the loss receipts (catering, accommodation, business records) properly; and at the same time, check your own unpaid fees and pay them in time for undisputed parts to avoid the expansion of the penalty and being passive in litigation.

5. Henglue Law Firm's Advice

The property management fees and water and electricity supply are two contracts and two legal processes. Neither party can use the other's breach of contract as an excuse to evade responsibility. The property management company should return to the proper channels of reminder and litigation, and the owners should pay the fees according to the contract and go through the procedures of rectification and reduction of fees if there are any defects. If you encounter water and electricity cuts or disputes over property management fees, you can seek help through the following channels:Legal services for real estate transactions and construction projectsTo learn more about processing experience, you can also visitBeijing Henglue Law FirmMake an appointment for a case assessment.

Q1: If the property management company shuts off the water and electricity to collect fees, can the owners win the lawsuit against them?

Yes. Article 944, paragraph 3 of the Civil Code (effective January 1, 2021) clearly stipulates that property service providers are not allowed to stop supplying electricity, water, heating, or gas to collect property fees. This is a prohibitive provision and is not exempted even if the owner owes unpaid fees. The owner may request the property service provider to immediately resume the supply and compensate for the losses caused by the suspension of supply, such as food spoilage, temporary accommodation expenses, and business suspension losses; at the same time, the owner may file a complaint with the housing and urban-rural development department or the local government, and the administrative authority will order the property service provider to make corrections. It should be noted that winning the lawsuit against the suspension of supply does not mean that the property fees do not need to be paid. The two obligations should be handled separately. For the unpaid fees, it is still recommended to make up the arrears or negotiate a payment plan.

Q2: What evidence do I need to collect to sue the property management company for cutting off water and electricity?

The evidence collection should focus on three groups of elements: the facts of service suspension, the consequences of losses, and the causal relationship. The facts of service suspension include property suspension notifications, photos and continuous video footage of water and power cuts, repair and work order records from water and power supply hotlines, and 110 alarm receipts. The consequences of losses include receipts for food purchases and spoilage, invoices for temporary accommodation, comparisons of business transactions during store closures, and lists of damaged refrigerated goods. In terms of causal relationship, the correspondence between the property's collection notifications and the timing of service suspension is the most crucial. Evidence should be fixed as soon as possible, as the on-site conditions after service restoration are difficult to replicate. If necessary, it is possible to apply for access to the community's surveillance footage and water and power supply records.

Q3: How much does it cost to sue for water and power outages?

The cost is manageable. According to Article 13 of the "Measures for the Payment of Litigation Costs" (effective April 1, 2007), the acceptance fee for property cases is collected in stages based on the amount of the litigation request, with a fee of 50 yuan per case for amounts not exceeding 10,000 yuan. For most cases with relatively low claim amounts, the acceptance fee ranges from dozens of yuan to hundreds of yuan. In cases where the dispute is resolved through mediation or the plaintiff only partially wins the case, the acceptance fee is shared proportionally. Lawyer's fees are negotiated based on the complexity of the case and the stage of representation. For simple infringement cases with limited amounts involved, it is also possible to file complaints or send letters to resolve the issue first. In comparison, the losses and impact on daily life caused by infringement often far exceed the cost of litigation, so it is more cost-effective to protect one's rights in a timely manner.

Q4: How long will it take to resolve the disputes over water and power outages?

The outcome of complaints and letter-sending procedures is usually clear within one to two weeks. After receiving the rectification requirements, the property management company usually resumes the supply of water and electricity immediately. For cases that proceed to litigation, if the first-instance court applies the simplified procedure, the case will generally be concluded within three months from the date of filing; if the ordinary procedure is applied, the case will be concluded within six months. Most cases involving water and electricity supply interruptions that are clear in fact are subject to simplified or small claims litigation procedures. In small claims litigation, the first-instance judgment is final. For claims of a relatively small amount, it is recommended to aim for a package settlement that includes resuming the supply of water and electricity, compensating for losses, and paying the property management fees in arrears. This can not only shorten the litigation period but also repair future living relationships and avoid winning the lawsuit but making enemies in the process.

Q5: If the owner really owes unpaid property fees and is sued, what should they do?

First, check and then defend. Check whether the details of the unpaid fees and the billing standards comply with the contract agreement, and pay attention to the three-year statute of limitations in Article 188 of the Civil Code (effective January 1, 2021). For the part exceeding the statute of limitations, you can raise a statute of limitations defense; for the service quality with actual defects, organize evidence such as repair records and rectification requirements, and claim a reduction rather than a full refusal to pay; do not use continued non-payment of fees or refusal to accept documents as a countermeasure, as the penalty will continue to accumulate. If there are real difficulties, you can negotiate with the property management company for a phased payment during the litigation. Separating the issues of unpaid fees and service suspension is the most cost-effective way to handle such disputes.

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 real estate transactions·Beijing Henglue Law Firm