The Construction Of The Legal System Of The Reverse Housing Mortgage

With the quickly coming of aging, the problems of providing for the aged have became very important things about national economy and people's livelihood .Our national situation is serious, which is lowing of the social security, the unreasonable mechanism of ensuring, and huge pressing of the providing for the aged. Facing the influence of the national policy of family planning, the most families of our country have evolved the family's structure of "four-two-one" , and the family of "frame of empty" is more and more rampant, the basic old-age pension system is imperfect, and so on, lead to heavy-laden problems of family-based supporting for the aged. These old peoples who are reluctant to add obstacles for young peoples and who should be supported can become heavy laden for society. Under the circumstances, it is being forced for us to seek the new care system. Reverse mortgage is a new system, the purpose of design which locates in the marker of old people from emerging is to achieve enjoy life for elder with the building. Namely, in order to obtain the funds, the house which the elder possess mortgages the banks or other especial financial institutions, the house will pay the mortgage loans after the elder pass away. Owing to reverse with mortgage, is called reverse mortgage. Reverse mortgage generated the impact when some the deputy of the People's Congress proposed to establish the system. However, our country also has not established the system. In connection with our national conditions, it is not only very necessary, but also has the earth of the development of the system for our country. Hence, reverse mortgage is selected subject of the essay, which further push that the system is established and developed in our country though the essay studying and arguing the legal problems of the system. The purpose of the essay is helpful to establish and develop the reverse mortgage in China.The essay is divided to four except introduction and conclusion, approximating 33 thousands words.Chapter one is the summarization of the reverse mortgage. Firstly, the essay starts to inspect origin of the mortgage, comparing to the characters of the mortgage, three parties, legal relationship, the purpose of loan, etc, obtain the conception of the reverse mortgage, which refers to an assure means that the old who reach a certain age in order to make up the deficiency of the pensions, will mortgage their houses they enjoy the ownerships to the bank but do not transfer the kind, and the bank will charge a certain percentage of their funds to mem every month according to the stipulations of their contracts, after their deaths, the bank will realize creditor's rights through sale, letting or auction etc. of their houses, meanwhile, the insurance company will assume insurance responsibility for the property risk and life risk, and the government assume risk guarantee liability to the reverse mortgage parties. Secondly, comparing to the charge, the legal nature of the reverse mortgage is a new type of real of security, which has the nature of material property, valuable, guarantee, but has the difference with the charge. Third, in order to interpret the reverse mortgage system, this chapter argues the characters of loan amounts, payment pattern, non-recourse, redemption, etc. The connotation of reverse mortgage is more and more definition though comparing with the mortgage's ten ways of purpose, apply groups, cash flow, subject matter, and so on.Chapter two argues that the reverse mortgage system is the necessity and feasibility of implementation, and inspiring of the experience of other countries for china. Our country is more and more serious of aging owing to the mass of the old, the rapid increase of aging, the unbalance of the district, etc. The social security system, which is the shortage of social pensions, the reform incomplete of the pension insurance system, is imperfect and the amount of the family's structure of "four-two-one" and "empty nest" are rapidly being to ascend, and the situation of real-estate markets is vigorous. This chapter attains the conclusion that the system is the necessity and feasibility in china, and we must to select our pattern with the situation of china, and the government plays its role in the course though arguing the patterns of others countries, such as USA and UK.Chapter three is the key part of the essay, arguing that our country will construct the framework of the reverse mortgage system. This part argues, if we will construct the reverse mortgage of china, we must have especially bodies, which is the different of others countries, such as borrower, banks, etc, that these bodies play role in the course, of which the borrower should limit sixty years, the commercial bank should responsible for providing a loan, the insurance company undertakes its guarantee function, the government should provide policy support for its operation. The contract of the reverse mortgage has important function in the course of its operation. This part argues that the contract is bilateral contract, onerous contract, nameless contract, model contract, non-resourse contract, and the contract should have fourteen essential terms, of bodies, loan amounts, form of payment, loan tenure, lending rate, and so on. The operational process of the reverse mortgage is the summary of its, elaborating the procedures of its operation.Chapter four argues that the reverse mortgage system involves the legal problems. Firstly, this part discusses the problem of efficacy of liquid clause, refuting three grounds to prohibit its, which protects interests of sponsor, others creditors, and is the natural requirements of real of security. In the end, insuring its operation eliminates obstacles of forbidding liquid clause in the reverse mortgage system. Secondly, it discusses the problem of land tenure. Conclusion is that selling funds should be pay by borrower before expiration of contract, on the contrary, it should be pay by the commercial bank. Finally, this part thinks the reverse mortgage system hasn't impact the principle of real right.The innovations of the essay can be briefly stated as follows. So far, anyone hasn't elaborated the nature of the reverse mortgage, this essay thinks it is a new real of security. The contract of the reverse mortgage plays important roles in the course of its operation, therefore, arguing the contract should have the essential terms. The unique construction of the reverse mortgage is also merit and innovation.Due to limit length, the essay can't minutely argue how to perfect these problems, of which the reverse mortgage involves the tax preference, property insurance, life insurance, and how to adapt to the adjustment of the reverse mortgage with social security act. Similarly, the essay hasn't analyze and discourse the problems of the moral risk, life insurance risk, and the calculation of life span, etc. The construction of the reverse mortgage locates in the early stage, expecting to justify its rationality in the practice. The shortage of the essay needs further research and study.