Lack Of Legal And Countermeasures Of The Individual Cooperative Housing

Cooperative House-building by Individuals, in plain terms, means a group of people pool their money together to buy land and then work together to build the houses to their own possession. Although it is an innovation in the models of the real estate development and wins a wide range of applauses, cooperative house-building claims few successful cases to its credit and remains as an exploration and testing for the common people’s ideal of gaining access to housing. To promote the ideal of house ownership, this thesis endeavors to probe into the relative deficiencies in legislation and the developing trend of the individual cooperative house-building, and put forward some suggestions to legal problems it encounters.At present, prices of commercial residential houses are unreasonably high hence the common people are under enormous financial pressure to buy a house. In response to this situation, the cooperative house-building organizations emerge and grow, and they introduce a new house-building model that inspires the participation and enthusiasm of common people to develop jointly. The strengths of cooperative house-building are as follows:first, it can effectively increase the enthusiasm of the common people to build and buy a house so that the house ownership ideal can be greatly promoted; second, it gathers a collection of people with the common aspiration to commit to and build their own houses; third, it enables the participants to have their very own property management, increasing the added property value; fourth, it provides a greater flexibility and suitability in house designing; fifth, it may evolve as a pioneering model of real estate development and construction and it is effective to reduce the pressure of purchasing a house on common people. The emergence of individual cooperative house-building effectively changes the current inflated house prices in the real estate market. But meanwhile it should be noted that the deficiencies of laws and regulations in cooperative house-building makes this new building model, which has been widely applauded, hard to be realized smoothly. The major problems that the individual cooperative house-building is facing include:it is hard to define the nature and the dominant position of the building organizations, which are at greater legal risks to shoulder responsibilities and seek legal protection; it is hard for the building organizations to obtain the required land for building because of the shortage of funds; it is easy for the construction cost to rise additionally because the construction, which is a very professional activity, is entrusted completely to the building company, which resulted in building organization’s complete reliance upon the building unit. Therefore, it is urgent to improve the relevant laws and regulations in order to provide legal protections when the interests of the partners are impaired. Otherwise any problem that is listed above will lead to the failure of the cooperative house-building. In a word, the improvement of relevant laws and regulations plays a vital role in the maturity of individual cooperative house-building. The success of the individual cooperative house-building will be ensured by legislation and government’s support, that is, to develop relevant laws to regulate the cooperation funds and maintain the stability of partners.The Individual cooperative house-building has broad prospects for development in our country in that the common people’s expectation of this house-building model is high even if there are only a few successful cases and lack of government’s explicit support. It is expected that the relevant government departments could work out relevant laws and regulations, which could be both referential and feasible in the practical operation, to support the development of this new house-building model. The following issues should be solved in order to ensure the smooth implementation of the individual cooperative house-building:first, it should be supported by the legal provisions and permitted by the government; second, a substantial amount of bank loans should be provided to the participants in addition to the money that they have pooled together; last, the cooperative house-building organizations should continuously enhance their basis for cooperation, stability and decision-making mechanism. What are the attitudes that government, corporate organizations and the participants hold towards the future development of the individual cooperative housing? How to deal with house developing, the most important part in the development of economy? It is the responsibility of the Government to secure the lower and middle class affordable houses and it is also the top priority of the government to ensure that the people can live and work in contentment. In this new situation, it is particularly important to work on the legislation for the individual cooperative house-building. The experience of cooperative house-building in foreign countries can be consulted in order to enrich and amend the relevant laws at home. To draw useful experience is beneficial to the innovation of our own housing model, the healthy and stable development of our real estate market, the contentment of people to life and work. Currently, not only the country hasn’t issued a complete set of norms, laws and regulations for cooperative house-building, but the relative government departments also hold an ambiguous attitude towards cooperative house-building, neither prohibiting it nor promoting it. Given the above circumstances, individual cooperative house-building will be subjected to the collective siege of the real estate developers. Besides, the risks of policy and market changes make it more difficult for the individuals to raise funds for building the houses. However, cooperative housing as a new housing model is worthy of our attention and it is operational in practice because it not only enables the people to get houses at a lower cost but also makes the national policy favor the low-income groups in the housing problem. It can be expected that in the near future the individual cooperative house-building will get such more attention and people’s active involvement that it will be successful and mature ultimately. The following are the main issues that this thesis addresses:the legal status of the partners, the purchase of land, the entrusted construction by the building companies, the legal recognition of partners’identity, the legal status and responsibility of partners.