A Study On The Issue Of Real Estate Securitization

Real estate securitization is a new investment method of real estate that developed form American in 1910. The general public can invest his or her money in the property market with relatively small amount of money compared to the traditional method. And real estate developers finance property development with both their own capital, along with mortgage loans from commercial banks. It cloud provide a alternative to raise money for development project. When it comes to public works real estate securitization offers a better mechanism in reducing cost and dealing with dweller than BOT does. Cause it can expand the participation basis, many counties or districts hoped that it could make a come back to former prosperity. Countries or districts such as Korea, Japan, Singapore, Hong Kong, and Taiwan have already introduced the system.First of all, the thesis Real would define what the real estate securitization is. Real estate securitization, by definition, is the securitization of the ownership of, or the creditor's entitlement to a debt over, a real estate property. It can be done by two means, Real Estate Investment Trust and Real Estate Property Trust. It can choose one of the three organizations, Special Purpose Company, Special Purpose Trust, and Limited Parternership, to achieve the translation. Because Limited Parternership does not stipulate in china, we will not discuss it.Secondly, thesis will compare the foreign regulation about Real estate securitization. In American there is Real Estate Investment Trust (REIT) and Estate Trust. Although Estate Trust may be eligible for the definition of securitization in American, it does not qualify for the definition in china according to Security Law. In Japan there are J-REIT and Real Estate Property Trust. Both of them are qualified for the definition of securitization. The latter is created by Japan through a long period form the begging of the Estate trust. Taiwan not introduced both systems, but it also has some regulations that are different from American and Japan such as regulation about organization. And Taiwan will modify some clauses in the upcoming mend ofReal Estate Securitization Statute.The most important of all is to discuss the necessity about introducing Real estate securitization into china. And dose the introduction of the system cause the impact on the present laws. And what should be rectified when the impact really come. Further more the thesis will focus on how to regulate the limited clause of the system to prevent it from being abused.