The Risk Of Real Estate Investment Trust And Legal Prevention

Real Estate Investment Trust refers to the client based on the trustee the trust,giving the money to the trustee to make a mutual fund.By the wishes of the client’sown name, engaged in real estate investments for the benefit of the beneficiary toobtain the behavior of interest.Real Estate Investment Trust is a common internationalway of financing. In recent years, China also learn from other countries’ Real EstateInvestment Trust to make sure that we can connect with international financial market.However, because of our special legal system,when we built our Real EstateInvestment Trust,we will meet a lot of problems.These problems will make somerisks.The risks will affect the interests of investors and the decision to invest in thereal estate market.It also will affect the stability of the market transactions.Inadditional, it will affect the development of the Real Estate Investment Trust in ourcountry.So,we will learn and study the experience from other countries or regions.Andthen we should make a legal system of Real Estate Investment Trust that will adaptour national conditions.In this way, it will make the development of the Real EstateInvestment Trust quickly and successfully. And it will also make be geared tointernational standards.In this way, it will promote the development of our real estateand finance.This article include four parts.The first part is talking about the overview of theReal Estate Investment Trust,and the classification of it.The second part is aboutowing to this classification, it will make four risks.The four risks include judicial risk,market risk, policy risk, credit risk.These four risks will obstruct the development ofthe Real Estate Investment Trust,also it will make some other harms. The third part isabout introducing the fundamental system of the Real Estate Investment Trust inAmerican and Hong Kong. Through introducing and anlysis we can know theircharacteristics and advantages of the Real Estate Investment Trust.The fourth part is asummarize about all of other three parts.Through all of these, we can know how toagainst the risks of the Real Estate Investment Trust.And Proposal to establish acomplete legal system which will fit our Real Estate Investment Trust.This article from analyzing the risks of Real Estate Investment Trust may facewhen them classify it in this way now to start. Then analysis the four risks whichengender by our legal system is belong to the civil law.And the Real Estate Investment Trust come from the common law.The two system will meet somecontradictions.These contradictions will make the four risks that will block thedevelopment.Next, analyzing, comparing, learning from the establishment anddevelopment of the United States and China’s Hong Kong Real Estate InvestmentTrust,absorbing their experience. Then giving the advise that how to against therisks.Finally,through all of them, we draw o conclusion that we should establish alegal system will fit our national conditons and make a law about the Real EstateInvestment Trust.To improve the legal system of China’s Real Estate Investment Trust,it will be astable and reliable way to protect and against the risks.