Real Estate Development Enterprises To Withdraw From The Market, Legal Issues,

It is a realistic question that how real estate developers should step out of the business, which is deeply concerned by relevant organizations. The study on the legal aspects of the above question gains scores mainly in The Chinese Corporation Law. However, it is far from enough to deal with the stepping-out process just within the scope of The Chinese Corporation Law, for the unique distinction of real estate business. As an response to the crying needs of practice, this article makes discussions over the issues of time, procedure and the balance of all parties' interests, employing historical, comparative and economic studying methods from the angles of corporation law, contract law and property law. There are four parts altogether below:Part One The basic conceptions about estate developers stepping out of the business:Real estate development generally refers to infrastructures and buildings construction on land. And real estate developers' stepping out means that they as a main body in the market give up or are deprived of their business qualification. The stepping out process under discussion in this article focuses on dissolutions caused by the following situations: business term expiration; dissolution causes defined in articles of corporation; dissolution decision made at stockholders meeting; loss of business qualification due to violation of laws and administrative regulations; withdrawal of business license for developers' failure in the annual examination. Compared with other businesses, real estate business is distinctive in terms of its developers, products and customers. Having studied the characteristics of real estate business, I find that there are conditions set by the government for real estate developers to go into the business, while there are no specific ones on their stepping out of the business. Therefore, the present article is dedicated to seek for a practical system in which the real estate developers may legally and smoothly step out of the business while the benefits of the customers can be effectively protected.Part Two The comparative study on real estate developers' stepping out of business:Foreign laws and regulations for the developers' stepping out process generally concentrate in corporation laws, and the usual practice does not set separate laws in this regard. The USA Format Corporation Law gives inspirations for the practice of performing formalities of property registration during the developers' stepping out, with its provisions that real estate developers continue to exist as corporations after their dissolution, a relatively long protection period is set for creditors when they claim their rights against the developers, and " leaving deposit at the state financial chief's place". Besides, the author of this article has been enlightened much by general rules on the developers' stepping out, set by stock corporation law and limited liability company law of Germany, civil code and corporation law of France; continual existence provision clearly prescribed in corporation law of Japan; real estate developers' "disclaiming property rights" stipulated by laws and regulations of Hong Kong Special Administrative Region. In our country, comparatively speaking, laws and regulations on this subject seems to be fairly limited and the correlative provisions are rarely found and scattered in corporation law, metropolitan real estate administrative law, tentative metropolitan real estate administrative method, real estate developer qualification administrative law, corporation registration administrative ordinance, etc. As China is a country of written law, it is natural that the laws and regulations, lagging behind the status quo, bring about difficulties for real estate developers, the buyers and concerned parties in resolving legal issues when the developers plan to end their business.Part Three Chinese real estate developers' motives to go out of the business, the status quo and existing problems:Firstly, the article makes analysis of the motives of the devel...