The Legal Analysis And Legislative Proposal Of Real Estate Investment Trust

Real estate investment trust (REIT) is a form of real estate securitization, resulting in 1960 in the United States. The trust institution(the trustee),should gather the capital of the investors through public or private ways, and, at the wills of the investors, invest in the area of Real Estate and the related fields, for the benefit of the beneficiaries.This first part of this article analyzes the legal concept of real estate investment trust. Through classification and comparison, I indicate its similarities and differences with other similar concepts. Next, I study the development path of REITs based on REITs of its birthplace. This tells us that the development and progress of a system has a very close relationship with its legal environment. After that, I explore and summarize the real estate investment trust system in some countries and regions of East Asia.The second part of this article analyzes the necessity and possibility of real estate investment trust system in China. There are series of sufficient and necessary conditions for the development of real estate investment trust here. First, the status of our real estate investment requires such a investment tool to satisfy investors'demand. Second, we can circumvent the possibility of a real financial risk through financial innovations. In this paper, these two points constitute the necessity of establishing real estate investment trust system in China. Investor's investment capacity and the current development situation of China trust industry is precisely the natural advantages to develop REITs. Then through the comparison of some trust fund programs similar to real estate investment trust, summed up the real gap between these practices and real estate investment trust, analyze of the pros and cons of these approaches and provide experience and lessons for China's real estate investment trust.The last part is the focus of this article. In the existing legal framework, it is unable to establish real estate investment trusts. Only through a series of breakthroughs of legislation, can we make it. At last, I put forward my own proposals on legislative style of real estate investment trust, organizational forms, requirements of REITs'establishment, tax incentives and investors'protection.