Legal Issues With The Localization Of Real Estate Investment Trusts And System Building

Since the1990s, China’s real estate industry has been developing rapidly. It has become a pillar industry of China. But in recent years, real estate financing encounters great pressure due to the strengthening of government regulation and financial regulation. It is imperative to Change the single financing structure and explore new financing channels for real estate business today. Meanwhile, with the development of economy and the accumulation of private capital, more and more investors are pressing to seek new investment exit. At this moment REITs emerges which can solve the problem above. Real Estate Investment Trusts (REITs) is a financial innovation in the United States in the1960s, as the result of both the development of real estate and finance to a certain stage. It has played an important role to the promote real estate and capital markets.This paper introduces the basic theory, the legal relations, development of the real estate investment trusts. Then we will analyze the legal provisions of the REITs in other countries, followed by a comprehensive, deep discussion about legal issues on transplanting REITs to the soil of China. Finally I put forward my own ideas and suggestions. The text of this paper consists of four main parts:Chapter one is an overview of real estate investment trusts. In this part the author introduces the legal basis, content, feature of REITs, then analyzes the difference between the related concepts, and briefly review its origin and development.Chapter two definites the value and lists the classification of REITs, discusses the different REITs, especially corporate REITs and contractual REITs. We can hold the essence through the surface, understand and grasp REITs in depth.Chapter three introduces the legal system of foreign REITs focusing on the development and legal framework of the U.S. real estate investment trusts. Also we describe the development of REITs in some Asian countries and regions and finally sum up the inspiration from the legal system of the United States and other countries REITs for localization of the system.Chapter four is the legal issues and suggestions on REITs localization. We discuss the possibility and necessity of the establishment of the C-REITs, also point out that the main legal issues and obstacles of the localization of Real Estate Investment Trust. At last, we put forward model selection of C-REITs and special laws the legislation recommendations.