Real Estate Investment Trust's Legal Framework And Options

Real Estate Investment Trusts (hereinafter referred to as"REITs") is currently of great significance in practice within the mainland of the People's Republic of China, however, the study of the theory on the REITs lags behind the its development. This article will, from the perspective of the theory, explore and discuss the following issues, which include what's the definition of the REITs? Does the REITs planning fall within the category of REITs? How many kinds of REITs regime are available in legal system? And what kind of legal relationship shall be involved in each legal regime? Is it necessary for the mainland to introduce the REITs? If so, what kind of legal regime is applicable to the mainland?This article firstly tried to clarify the definition of the REITs and analyze its main characters, and then this article traced its origin in USA and described its prosperity afterwards as well as the development in Asian countries and regions. It is really admitted that the author fails to detail all the issues concerned and give the same emphasis on them in such an article with around thirty thousand (30,000) words because there are so many legal blanks for REITs as a new thing. Therefore, the article focused on the establishment of the legal regime for the REITs by making an analysis of the practice and legal regime in some countries and regions.This article firstly put forward that there are corporate type and contractual type legal regime for REITs, and discussed the different theory on which they are based, and then analyzed their respective advantages and disadvantages from the aspect of economics and jurisprudence, so as to deepen the study of the REITs regime.Based on the study in the above, the article put its view on the status of REITs in mainland and pointed out that REITs shall fall within the real estate credit through a deep analysis. As we all know, REITs has not been established in the mainland and there is a misunderstanding that REITs is actually a kind of developer financing, so the author addressed the necessity for the introduction of REITs in the mainland, and believed that it would be helpful to keep real estate market healthy and stable, maintain commercial banks secure, and optimize the resource configuration. Meanwhile, the author also demonstrated the feasibilities of the introduction and development of REITs in the mainland, which...