Shanghai Municipality, Administration of Maintenance Funds for Commodity Residential Premises Measures

Promulgated: October 12 2000
Effective: January 1 2001
Interpreting authority: Municipal Buildings and Land Resources Bureau
Applicability: These Measures apply to the setting up, use and management of maintenance funds for commodity residential premises in Shanghai (Article 2).

Main contents: According to the Measures, while it is mandatory for newly constructed domestic-market residential premises to set up maintenance funds, it is only optional for overseas-market residential premises to do so (Article 4). In the case of domestic-market residential premises, the initial contributions to the funds shall be made by the real property developers and premises purchasers on the basis of specified percentages (2-3%) of the per square metre construction cost. In the case of overseas-market residential premises, the amount of the initial contributions shall be determined by the owners (Article 6). In the case of domestic-market residential premises, evidence of such contribution shall be provided to the real property registration authority when the developers and purchasers go through the real property registration Measures (Article 7). Such maintenance funds shall be used specially for the repair and renovation of the common areas and common facilities of the relevant residential premises, but may also be used to fund the activities of the owners' committee subject to the approval of the owner's general meeting (Article 14). Where the premises are transferred, the transferee shall complete the Measures with the account bank of the funds to ensure that he takes over the funds under the transferor's account (Article 21).
Related legislation: Shanghai Municipality, Management of Residential Property Regulations, May 28 1997, CLP 1997 No.9 p20