Analysis On Mortgage Legal System Of Property Under Construction In China

Along with the thorough reform of Chinese housing system, mortgage on commercial estate is being developed as a new pattern of security interest. Mortgage on commercial estate, called real-estate mortgage in Anglo-American law, was developed very rapidly after leaded into China from Hong Kong at 1990's.There are two kinds of mortgage in housing system: mortgage of property under construction and mortgage of property constructed. Compared with mortgage of property under construction, mortgage of property constructed is more normalized with more complete legislative authority. Lacking of relevant legislations, mortgage of property under construction brings about chaos in practice.In order to resolve the problems in practice and potential dangerous under current incomplete legal system, we should pay more attention to normalize mortgage system of property under construction.Reviewed origination in UK and development in HK of mortgage system, this paper clarifies that the essential meaning of mortgage is a pattern of security of transferring property right and mortgage of property under construction in China is learned directly from HK's mortgage system. Based on the status of mortgage of property under construction in China and analysis of right and liability for all parts, this paper claims that one of the essential reasons of disputes in practice is that mortgage contract of property under construction lacks of executive power without clear legal support. Legal normalization of property under construction in China is necessary.The next chapter analyzes the advantage and disadvantage of possible legal normalizing models.Then the paper says that perfecting the current hypothec system will be a good way to normalize mortgage of property under construction. More, the realization of hypothec system for advanced sale commercial housing is researched with meaningful...