China's Housing Mortgage Legal Risk Prevention

Because of the rapid growth in recent years for the housing consumption and investment demand, leading to rapid increases in house prices, gradually increasing loans to home buyers, and the mortgage is the first way to purchase in our country. However, the mortgage-related provisions of the law is not perfect, resulting in practical operation, the main parties are facing greater risk, without preventive measures, resulting in the legal relationship of mortgage loans are not effectively protect the interests of the Parties in. This not only harms the mortgage purchase process legitimate rights and interests of all parties, is not conducive to social stability and harmony.View of this, this article tries to guard against the risk of mortgage for a series of probe. Obtained by comparison with hypothecation the legal nature and necessity of the existence of the mortgage, Reveals the process of China's current mortgage principal risks faced by the parties by empirical methods, reviewed some of the existing legal provisions and insurance system, and leads to China's current basic risk prevention system-Insurance problems. This article also outlined a number of other countries in the mortgage operation of legal system and practice, in order to provide reference for China to further improve the legal. Finally, the author made the following humble opinion on the risk prevention in the parties and the current insurance system:First of all, for developers of risk prevention, the author suggested that in the agreement or contract which developers signed with banks and the buyers, increase Counterparty obligations and liabilities for breach of the terms clearly; Secondly, to prevent the risks of banks, the author called for a government housing loan guarantee system and the establishment of a sound insurance system in the corresponding; In addition, for the borrower's risk prevention, the author proposed the creation of catastrophe insurance system, and be provided in the law; Finally, the article raised some idea in Insurance, type, and the insurer subrogation and etc. for the insurance which is the current system of risk prevention, the purpose is that law could provide more comprehensive and effective assistance to mortgage loans in the process of the main parties.