A Number Of Legal Issues In Real Estate Investment Trust

Real Estate Investment Trusts( "REITs" ) arised from the American investment derived products. REITs are introduced in Japan, Singapore, South Korea, Taiwan and Hongkong district in succession in the recent years. The demand of REITs import is rising in the mainland.The idea of REITs derived from commercial trusts in the Boston City of Massachusetts. In 1960, President Eisenhower subscribed "Real Estate investment Trust Act of 1960" , which benefited to the individual investors to participate in the Real Estate investments and share in interests therein. The two advantages of REITs are established in law, which are favorable tax and allowing transaction in public, aiming to solve the liquidity of the real estate assets. The first REITs came into existence in 1961.By now, REITs is a popular finance tools to the real estates and as a result of finance innovation in a higher market stage. REITs bear the unique advantages compared to the others.REITs invited the great interests in the society. It is worthy to research the character of REITs for reference, and explore the REITs in our market.The structure of the paper is composed with six parts.The first part of the paper introduces the general ideas of REITs, such as definitions, characteristics, categories and the functions.In the second part, outlines the origination and developments of the REITs, which lay emphasize on the REITs in the America to draw some conclusions and experiences from it. The REITs in Asia are mentioned in the part.The third part mainly discussed the subject frameworks of the REITs, which pay much attention to the rights and liabilities of the assignee.The fourth part introduces the exploration to the REITs in China under the law circumstance at present and gives the author's remark.In the fifth part, investigates the barriers to the REITs practice in China, including the laws and regulations, matched conception and consciousness, developments of the market, etc.In the end, the author first analyzes the necessary and feasibility to developing REITs in China. Then the author represents the suggestions and advices, such as legal environments, supervision mode, trust managements and so on.