Recently, a woman in mainland China won a bid for a 83-square-meter apartment in Shaoxing on an auction platform for 312,300 yuan (RMB). She thought she had made a great deal but was surprised by the exorbitant annual property fees.
According to Zhejiang 6 Channel’s “1818 Golden Eye” report, Ms. Liu usually lives in Hangzhou, Zhejiang. She targeted unit 1702 at the Yongli Grand Hotel on Century East Street in Shaoxing on an auction platform. The apartment has an area of around 83 square meters. On March 30, she successfully bid for the apartment at a price of 312,300 yuan and had already paid a deposit of 50,000 yuan.
Ms. Liu originally planned to use the apartment for rental investment. However, during the handover process, she discovered that the elevator in the apartment building was exclusive to the hotel and was equipped with elevator control access, making it inaccessible to her. Additionally, the annual property management and elevator usage fees amounted to a staggering 8,000 yuan, while the rent was only a little over 10,000 yuan, resulting in disproportionately high property fees. Moreover, she would also need to pay extra for water and electricity.
She mentioned that the apartment she bought is located above the Yongli Grand Hotel. The bidding announcement page indicated that participants should have understood the fees, including property management and utility fees, before the auction. Subsequent expenses would be negotiated between the buyer and the hotel, with the liquidation unit being the South China Bankruptcy Liquidation Affairs Nantong Co., Ltd.
Regarding this matter, employees from the South China Bankruptcy Liquidation Affairs Nantong Co., Ltd. stated that they were unable to intervene in the property fees as it was clearly stated in the announcement that buyers should have been informed about the relevant information before the auction.
Ms. Liu mentioned that she had inquired at the hotel front desk, but they claimed to be unaware of the situation. She considered it a huge “pitfall” and even tried to negotiate with the auction company to re-list the property, but feared potential lawsuits from buyers.
Other owners on the 17th floor of the Yongli Grand Hotel also expressed similar concerns about the property fees as Ms. Liu had discovered.
In response, the manager of the Yongli Grand Hotel mentioned that investing in property carries risks similar to investing in stocks. He stated, “When you think normally, for such a large area on Century Street, it’s just a small amount of money.” He further clarified that the 17th floor and the hotel are merely neighbors, and the property fee collection entity is not the hotel itself, with each homeowner having different fee standards.
Unable to accept the high property fees, Ms. Liu expressed her desire to terminate the transaction. However, the customer service at Ali Auction mentioned that a specialist response is needed for the cancellation process.
Currently, Ms. Liu is awaiting a response from the platform and considering legal avenues to protect her rights.
It was reported that before Ms. Liu purchased the property, it had already been auctioned twice on the platform, with prices of 401,000 yuan and 340,300 yuan, respectively. It’s estimated that previous owners also encountered similar situations.
This incident has sparked concerns among mainland Chinese netizens, with many suggesting collective legal action against the hotel for such practices.
Some comments included, “Elevators are common facilities and the hotel has no right to control access. Homeowners should seek legal advice. If tenants cannot rent due to elevator control issues, they can claim compensation from the hotel.”
“Homeowners should unite and jointly sue the hotel.”
Others advised caution when purchasing foreclosed properties: “Be cautious when buying foreclosed properties. Before making a purchase, spend some time investigating on-site. Good deals don’t just fall from the sky.”
“There is a right to know. This is misleading consumers and taking advantage of their lack of knowledge. It’s fraudulent behavior.”
“Good products are not cheap, and cheap products are not good.”
Source: New Tang Dynasty