Studies On Relevant Legal Issues On Operation Mechanism Of Real Estate Trust

The implementation of Chinese urbanization strategies has led to a gradual rise on real estate trust project. At present, although diversified forms of real estate trust are flourishing in China, still there remain lots of practical juridical problems as a result of the absence of systematic support from legal theories and the loopholes in operation system of real estate trust. Under the new situations, it is a practical challenge for government investment and financing platforms, trust companies, commercial banks and enterprises to do a good job in real estate trust and guard against legal risks. By analyzing legal theories, relevant data and cases, the paper makes systematic studies on operation mechanism of real estate trust. The author hopes, with the exploration of both theories and practices, to make an improvement in laws and regulations related to the operation mechanism of Chinese real estate trust.This paper is composed of7sections. Section1serves as an introduction and elaborates the research significance, background and contents of the paper, a foreshadowing for subsequent sections. Section2is an overview of real estate trust and discusses the concept, major classification and significance of real estate trust. Section3gives a description of the current operation status of real estate trust, based on the current status of real estate trust development and land trust innovation. From the point of view of real estate trust operation and legal issues, Section4reveals problems influential to the development of real estate trust, including operation mechanism, trust law and other relevant laws, a prelusion to subsequent countermeasures and suggestions. In combination with specific cases, Section5expounds existing problems during real estate trust practices, including disordered legal, mismatch between rights and liabilities, the possibility that real estate trust company may appropriate a part of the trust properties or revenues to themselves, fabricated trust loan contract, the trust company’s concealing illegal intentions by taking advantage of the legitimate status, the nominal information disclosure systems and so on. On the basis of research analysis in Section4and5, Section6proposes countermeasures for the improvement in operation mechanism and legal systems of real estate trust. Countermeasures for improving operation mechanism of real estate trust include:definition of real estate trust by legislations, establishment of assessment system on real estate value, the adoption of real estate assets securitization as financing channels for real estate trust, improvement in real estate trust registration system, and centralized supervision. Countermeasures to improve laws and regulations on real estate trust include:establishment of the legal status of real estate financing fund trustee, clear definition of responsibilities of the real estate financing fund trustee, improvement in laws and regulations on the trustee, establishment of special real estate trust laws, effective link between relevant laws and regulations, improvement in real estate laws, and enhancement in information disclosure systems. Section7concludes the discussion and looks forward to the future.