On Real Estate Investment Trusts (reits), The Trustee System

Real Estate Investment Trusts (REITs for short) is an effective financing and investing tool which can accelerate real estate related enterprises, essentially, it belongs to a trust product . Developing REITs can not only enlarge the channel for real estate financing , satisfy the real estate enterprises'demand for money ,break the deadlock that real estate enterprise excessively depend on the bank in financing, reduce the systematic risk of financial enterprises, but also establish the stage in which large number of unused society capital engage in investing ,fulfil such mass investors'desire to participate in real estate affairs, enormously promote the development of real estate . We should create the REITS principle because it is meaningful in many areas such as stabilization the price of real estate, restraint the wealthy gap, construction of"harmonious society", etc.In nature, REITS belongs to the type of capital trust, which bases on the trust principle legally, and exerts the advantage of trust as"trusted by others, financing for others". In trust legal nexus, it always includes three parties, i.e., trustier, trustee, and beneficiary. Above all, trustee plays significant role in trust legal nexus, for this reason; some scholars defined it as the embodiment of trust legal nexus. Many countries had enacted special provision about trustee. Here is my key research in this paper.This paper consists of four main parts .A general introduction to REITs is made in the first part, where the concept, general developing status, and function of REITs are illustrated. The legal basement of REITs which is trust principle is emphasized in the second part, where briefly introduction about history origin, definition and function is made, in the aspect of legislation practice, it is clarified that trustee plays an important role in trust legal nexus. Moreover, a comparative research on REITs trustee principle is made in the third part. Combined with"one law, two regulations"which formulates REITs in China, it is compared with legislation in two legal system countries from the point of right and duty, farther, apperceiving our shortage andobjection in REITs legislation. Finally, aimed at shortage and objection in REITs legislation, some suggestions on REITs trustee's duty of care and prudent had been provided, for the purpose of impelling the REITs trustee principle to be perfect.