On Trust Legal System’s Establishment Of Residential Special Maintenance Funds In China

Residential special maintenance fund, which is called the "pension" of house, earmarks for maintenance, renewal and transformation of residential common parts and shared facilities and equipment after warranty expires. Related to the owners of "housing the music industry." However, generally speaking, China’s current residential special maintenance fund system has a lot of problem, such as house sale units’ misappropriating of maintenance fund in the name of collection, the increasing pressure, the lowing efficiency of administrative management, the large amount of idle maintenance fund and the appreciation and hedging of maintenance fund confronting inflation. The article tries to introduce trust system, exerting its flexibility and professional strengths in property management and establishing residential special maintenance funds trust, in order to ensure the safety of maintenance funds and effectively protect the interests of the house owners.The thesis unfolds with four chapters. The first chapter provides an overview of residential special maintenance funds system in China and introduces the legislation and the existing practical drawbacks, based on a explicit definition of maintenance funds.The second part of this thesis demonstrates the feasibility of introduction of trust in the residential special maintenance fund system. Then, the significance of trust to residential special maintenance fund regime is also discussed from a realistic point of view. Meanwhile, relevant system in Japan and the United States are discussed for the establishment of our country’s residential special maintenance fund trust’s reference.The third part of this thesis, based on the feasibility and significance and concentrating on legal relationship, introduces the specific framework on establishment of legal relationship of residential special maintenance funds trust. The system should be established regarding the house owner as trustor and the owner committee as trustee. Moreover, on the basis of the first trust, a second trust could be set up, regarding the owner committee as trustor and the property management companies and specialized financial institutions as co-trustee. Within this framework, the thesis elaborates the rights-and-obligation relationship of trustor, trustee and beneficiary respectively.In the last chapter, the author proposes expectation on residential special maintenance fund trust’s development in our country. Obstacles, both legislative and practical, still exist within the present legal system in China on the establishment of residential special maintenance fund trust, which should be addressed. Meanwhile, to satisfy the professional requirement of legal system of maintenance fund trust and to perfect relevant supportive system are indispensible for the security of trust maintenance fund.