The Construction Of Housing Reverse Mortgage Loan Legal Mechanism In China

With the arrival of an old-aging society, how to deal with the situation has become a major social problem to be urgently solved. As a developing country,with more than one hundred million of the aging population, it is heavier, more complex and more urgent in China. Social old-aged security system is not perfect and the traditional endowment patterns have been overwhelmed, so China needs to explore new mechanisms to solve the endowment problem. Housing reverse mortgage system is a new direction of China’s endowment system in the future.Housing reverse mortgage is a kind of financial product which enables senior citizens who reach a certain age to raise a mortgage on their houses of their own full ownership by asking financial institutions for a loan while reserving the right of habitation on their houses and which requires the repayment on the loan in the form of earning of selling the house only after the owner of the house moves out permanently or after his death. The implementation of the housing reverse mortgage loan system, on alleviating pension burden, and improving the lives of senior citizens in retirement; on creating a good family atmosphere, and building a harmonious society; on innovating financial products and driving the development of financial markets; on the rational allocation of resources, and promoting the benefit maximization; on activating the real estate market, promoting the healthy development of the second-hand housing market; on reducing the state’s financial burden, and promoting the development of the national economy; on improving the legal system, and building a society governed by the rule of law are of great significance and value realization.The housing reverse mortgage in South Korea have been improved gradually, and the cultural tradition of Korea is similar to China, and compared to Japan, the economic situation of China and South Korea is the same. So this paper is to research on Chinese legal system of concrete construction of housing reverse mortgage loan, taken South Korea housing reverse mortgage products-Residential annuity as the basis. It is the biggest innovation in the paper.The paper is divided into three parts. The first part analyzes the basic legal issues of housing reverse mortgage loan system, with the definition, the function, the legal feature and the legal basis, to understand the housing reverse mortgage system from the macro. The second part of this paper is to research the constitution of the basic law of Korean Housing Reverse Mortgages-Residential annuity and current developing situation. The analysis of the advantages and disadvantages of Korea housing endowment, is to provide the basic research for Chinese housing reverse mortgage. The author, proceeded from China’s specific national conditions, is to boldly study the specific legal system of Chinese housing reverse mortgage loan to give my notion for the construction of Chinese housing reverse mortgage system in the third part of this paper.