Published: 11:11, March 4, 2026
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Call to revise national property management rule
By Cao Yin

China's strengthened legal oversight has accelerated revisions to the national property management regulation, a move aimed at fortifying grassroots governance and better protecting public interests.

In recent years, the Standing Committee of the National People's Congress, China's top legislature, has received numerous requests from various sectors to review local property-related documents. Reviews found that some administrative provisions and local rules were inconsistent with national laws, and authorities have urged corrections.

"The move reflects our commitment to enhancing the review of normative documents, such as judicial interpretations and administrative rules, strengthening legal supervision, improving grassroots governance capabilities and addressing public concerns," said Yan Dongfeng, an official with the NPC Standing Committee's Legislative Affairs Commission.

One case disclosed in 2024 involved a local regulation stipulating that 70 percent of revenue from commercial activities conducted in common areas before a homeowners' association was established be allocated to a residential maintenance fund, with the remainder used to subsidize property service fees.

Upon review, the commission said that under the Civil Code, implemented in January 2021, income from such activities should be collectively owned by homeowners, who must jointly decide how it is used.

Yan said the local regulation was inconsistent with the spirit of the Civil Code and that authorities were urged to amend it.

In another case disclosed in 2024, some local regulations allowed residential compounds to lease parking spaces to nonresidents if spaces remained after meeting residents' needs, provided the homeowners' committee agreed.

The commission said leasing parking spaces involves using common areas for commercial purposes and can affect collective property rights as well as the safety of the compound, the environment and order. Under the Civil Code, such decisions should be made by all homeowners, not just the committee. The local authority has been asked to revise the regulations.

In 2021, some individuals reported that a local rule required candidates for a homeowners' committee to have paid property fees on time.

After review, the commission determined that a homeowners' committee is an autonomous organization and that eligibility to run for it should be based solely on homeowner status. It said nonpayment of property fees constitutes a civil contract violation and should not be grounds to restrict candidacy, calling the requirement inconsistent with principles set out in the Civil Code. The regulation has since been amended.

Yan stressed the need to correct problems in such rules. While welcoming the rapid development of the property management industry, he said shortcomings in service quality, fee mechanisms and oversight systems have led to frequent disputes and a rise in review requests.

Yan and some NPC deputies called for prompt revisions to the national property management regulation or for the enactment of specialized legislation, saying property issues affect the basic interests of every citizen.

The current regulation, implemented in September 2009, has become outdated. "Many provisions are too vague and have not been updated in line with new legal frameworks, such as the Civil Code," Yan said.

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During NPC annual sessions in recent years, several delegations and deputies have proposed drafting a property management law.

Chen Weiguo, a national lawmaker from Hubei province, advocated strengthening legislation on social governance to regulate property company services. Gao Huarui, an NPC deputy from Jiangsu province, recommended formulating a property management law to clarify homeowners' committee procedures and legal responsibilities and to enhance oversight of property companies.

In response, the Legislative Affairs Commission said it is urging relevant State Council departments to revise the property management regulation as quickly as possible and is considering more comprehensive legislation to address prominent issues in the sector and better safeguard public interests.

 

Contact the writers at caoyin@chinadaily.com.cn