A Study On Legal Problems Of Real Estate Investment Trusts

These years, the development of our country’s real estate industry is very rapid, and high profit attracts a lot of funds into the real estate industry, so as to promote the rapid development of the REITs. The development of real estate investment trusts in China is short, the system is not perfect, and the related system is still not fully established, making the real estate investment trust expose more and more questions in the process of its development After2000, the development of real estate investment trust industry attracts people’s attention more and more, and the investigation about this aspect will be increased, but research from the perspective of law is very rare. Real estate investment trust industry develops fast, while the related laws and regulations are frequently modified, and regulatory policy changes ceaselessly. On one hand, this is the results to the real estate investment trust in-depth study; on the other hand, this caused difficulties for the study of real estate investment trust. At present, the development of real estate investment trust is in its transition period, improving the real estate investment trust system is of great significance to the real estate industry, the financial industry and even the whole national economy.Viewing the current situation of China’s Real Estate Investment Trust, the greatest problem is the defects in investment pattern of REITs. China’s Real Estate Investment Trust has two diferent structures:equity investment trust and loan investment trust. In fact, loan investment trust business accounted for more than70%, and the true equity investment trust becomes less and less. The trust company becomes offbeat financing bank which practice "usury". The philosophy and purpose of the trust law gradually go from "to be entrusted, to be finance management agent". In order to change this phenomenon, the CBRC has issued a series of documents. So the CBRC can strictly limit the trust business of trust company and make the trust return to equity investment trust. But various forms of "fake equity investment, true loan investment " make the CBRC s spirit is willing but the flesh is weak, causing a number of economic and legal issues. The emergence of these problems is the consequence of flaws in Real Estate Investment Trust design, and China’s Real Estate Investment Trust fund is the fundamental way to solve these problems. The REITs system has already become the world trend, and in light of China s specific situation to establish Chinese mode of REITs system will be our real estate investment trust development direction. The establishment of REITs system involves many legal problems, such as the REITs organization form, operation mode, supervision and management. In the process there are many legal problems need to discuss and solve. Solving these problems is the premise of establishing our REITs law.