On The Real Estate Credit Risk Prevention Legal Issues

Under the background that the quantity demands of real estate is so large, the real estate credit has eased the discrepancy between high housing price and low income at some extent. There are a lot of problems coming about during the expansion of the real estate credit market. In this case, the regulation and control of credit venture becomes the key point. If the venture cannot be controlled well, the credit industry and the economy of the whole country will be affected. However, the legal system on real estate venture control still needs to be improved, such as the personal credit system, the venture control system of the financial institution, the capital securitization and so on, which leads to the unstable real estate credit market. The high housing price and lack of regulation of the modern real estate market show the urgent demand of real estate credit venture control. In order to improve the legal system of real estate credit, we can draw on that in the developed countries and areas. Meanwhile, we also need to find out the shortage of foreign legal systems, and learn the lesson of the sub-prime crisis in the United States. Based on that, if we establish and improve the venture control legal system from the legislation, the practice and the inner and outer regulation, the real estate credit market will move along well.