The stipulation regarding "deemed delivery" in the commercial housing pre-sale contract represents a consensual arrangement between the developer and the property owner concerning the handover date of the housing. Provided that such stipulation complies with contractual agreements and legal provisions, it shall be directly binding on the division of the party liable for property management fees. Where the developer has fulfilled its notification and reminder obligations as agreed under the contract, yet the property owner refuses to bear the property management fees on the grounds of failing to physically take possession of the housing or receive the house delivery notice, the people's court shall not uphold such defense, and the property owner shall still pay the property management fees as contracted.

Chen is the buyer of a residential unit in a certain community. In August 2016, Chen signed the Shanghai Commercial Housing Pre-sale Contract with the developer. The contract stipulates that if the property owner fails to complete the handover procedures on schedule after the developer fulfills its obligations of issuing a house delivery notice and sending a reminder (both to be fulfilled via registered mail or direct delivery), the house shall be deemed delivered upon the expiration of the reminder period.

In November 2016, the property management company signed the Preliminary Property Service Contract with the developer, which stipulated that the property fees for the month when the sold houses were delivered would be borne by the developer, the property fees starting from the following month would be borne by the property owners, and set forth the standard for property fees. In December 2017, the developer sent a house delivery notice and a notice urging house delivery to Chen by registered mail to the address agreed in the contract, and the postal service confirmed the mail had been dispatched.

Later, Chen asked the developer to assist him in applying for the property ownership certificate in August 2021 and issued a Confirmation of House Delivery Procedures. After the property management company provided property services in accordance with the contract, Chen refused to pay the property fees from January 1, 2018 to August 31, 2021 on the ground that he did not take actual possession of the house until August 2021. Consequently, the property management company filed a lawsuit with the people's court.

The court held after trial that the involved *Shanghai Commercial Housing Presale Contract* and *Preliminary Property Service Contract* represented the true intentions of all parties, were legally valid, and binding on the parties. The developer fulfilled its obligations of issuing housing delivery notices and reminders by registered mail as stipulated in the contracts, and the mailing address was the one confirmed in the contracts, which complied with the contractual provision on "deemed service". The involved house shall be deemed delivered in December 2017. The 2021 *Housing Delivery Procedure Confirmation* was issued solely for the purpose of applying for property ownership certificates and does not alter the fact of prior delivery. Chen’s defense refusing to pay property fees on the grounds that he had not taken actual possession of the house or received relevant notices shall not be upheld.

Disputes over the burden of property fees at the handover stage of commercial housing center on the identification of the "handover time point". The "deemed handover" clause in pre-sale contracts serves as the key to defining this time point, which concerns the rights and obligations of three parties: developers, property owners and property management companies, and also affects the normal order of the property service market. To resolve such disputes, efforts should be made from three dimensions: contract performance, rule application and subject rights and responsibilities, so as to clarify the obligations of all parties and standardize transaction practices.

In this regard, the suggestions are as follows: Strictly perform the delivery obligations stipulated in the contract. The clauses clearly specified in the commercial housing pre-sale contract between the developer and the property owner, including the delivery notification method, reminder procedures and circumstances deemed as delivery, are the outcome of mutual consensus between both parties and are legally binding. Developers shall fulfill the obligations of housing delivery notification and reminder in the manner agreed in the contract, retain evidence such as mailing vouchers and delivery records to ensure the compliance of delivery acts; property owners shall pay attention to the delivery period specified in the contract, receive notifications and complete handover procedures in a timely manner. If they have objections to the delivery conditions, they shall raise such objections through legal channels and keep relevant evidence, instead of simply refusing to take over the housing, so as to avoid bearing adverse consequences for failing to perform contractual obligations.

Clarify the division criteria for the burden of property management fees. The Preliminary Property Service Contract signed between the property management company and the developer shall clearly define the parties liable for property management fees, billing standards and the starting time of fee calculation. The payment liabilities of the developer and the property owners shall be divided based on the handover time of the house, so as to avoid disputes arising from ambiguous agreements. The property management company shall provide property services in accordance with the contract. When claiming property management fees from property owners, it shall produce evidence to prove that it has performed its service obligations and the specific time of house handover. As the recipients of property services, property owners shall bear the property management fees as agreed if the house meets the agreed conditions for "deemed handover", and shall not refuse to pay the fees on the grounds of not actually moving in or not receiving property services.

Resolve disputes over property delivery and property fees through legal channels. For disputes concerning the confirmation of delivery milestones and the liability for property fees, all parties shall resolve them through negotiation in good faith. If negotiation fails, the developer, property management company and property owners may file a lawsuit with the people's court or apply for arbitration in accordance with contractual agreements and legal provisions. The developer shall provide evidence to prove that it has fulfilled contractual obligations such as issuing notifications and sending reminders; the property management company shall furnish evidence to verify the provision of property services and the basis for calculating property fees, so as to ensure that rights protection actions are fully supported by facts and law.

This article is reposted from the WeChat Official Account "Shandong Higher People's Court", and we hereby express our gratitude!