On The Property Management Contract

Property management contract is a new kind of contract different from any other nominal contracts before, under which property management companies perform their obligations by providing comprehensive services for condominiums. The relationship of property management companies and owners is neither that of the superior and the inferior like the manager and the person managed, nor like that employees completely obey employers.Property management contract is distinguished between previous property management contract and property management contract which have different legal characteristics in parties and subject matter etc.The terms of Property management contract shall be clearly prescribed and include property management items, service quality, service charges, the parties's rights and obligations ,management and use of special funds, contract date, liabilities for breach , defining the parties's rights and obligations in order to escape dispute attributable to poorly defined terms . Building ownership is legal basis of property management system as well as theoretical basis of resolving many property problems among property management contract dispute. According to the theory of building ownership, parking spaces, basements, rooms used for Property Management, land for construction and grassland are common elements of owners, co-ownership too. Developers or property management companies shall bear relevant liabilities in case of harming property interests of owners. After execution of property management contract, the parties should perform their respective obligations, including that property management companies should provide professional property management services and owners should pay assessments for common expenses. Where owners themselves or property interests of owners being harmed is attributable to a third person, property management companies shall bear supplementary liabilities within the limit of failure to safeguard well in according with the terms of property management contract or law. As manager, property management companies shall be liable for not well managing and repairing common facilities causing owners physical injury and damage of property. Where use and transferring of special funds is out of law and without authorization, property management companies shall bear liabilities the by making restitution and paying damages. When undeveloped property management services exist or owners select and employ a new property management company, executive board has right to terminate present property management contract and to make a new one. Upon termination of property management contract, present property management company still has the obligations of specific management ,delivering documents and others to new property management company ,Otherwise liable for breach.