The Changing Landscape of Condominium Laws and Urban Governance in China

Abstract

China, as a transitional economy, meets its challenges by devising private law reforms while considering their potential conflict with prevailing cultural orientations and institutional settings. The academic discourse shows the multiple benefits that homeowner associations (HOAs) can offer. Yet, all of these proposed benefits are contingent on HOAs functioning well. What kind of law should help avoid dysfunctional practices and resolve effectively the disputes in the Chinese condominium context? In order to answer this, the initial step is to identify the problems pertaining to condominium governance in the Chinese context. To this end, this chapter aims to depict the institutional design and operational implementation of condominium governance in China. First, it traces the evolution of condominium ownership in China. It then provides a general overview of the current statutory framework relating to condominium ownership. Subsequently, some practical difficulties are illustrated in respect of demarcation between individual units and common property, pre-sale of apartments, and allocation of participation quota. Furthermore, issues involving collective management of common property and the local government’s role in shaping the property relations among stakeholders are addressed. A micro analysis of local condominium rules at the local level is highlighted to allay malpractice and developer overreaching. Finally, the chapter concludes on how to capture the dynamic property relations among key actors and between rules, norms, and cultural changes.