Research On The Set-up Of The Mortgage Of Construction In Progress

Mortgage system,has long been recognized as "the king of guarantees”,its advantage is not only reflected in the realization of credits and guarantees to fulfill obligations,but also reflected in the maintenance and promotion of credit for market participants,further prevent or mitigate transaction risks and accelerate financial resources.Therefore,mortgage system is one of the most widely used security methods in the operation of the market economy.Since the 20 th century,real estate is one of the China's important economic pillars.With the rapid development of the real estate industry in China,in order to ensure the normal operation of the capital chain for property developers,and guarantee the interests of creditors at the same time,the practice of using construction in progress as collateral and establishing the mortgage began to be widely used in practice.Construction in Progress Mortgage System,it refers to a series of systems that take the building under construction as the subject matter for mortgage guarantees.Compared with the general collateral,the construction of the project is especially unique in terms of its form,nature and characteristics.Therefore,Construction in Progress Mortgage is largely based on the breakthrough of the traditional mortgage system under the background of the new situation with the development of market economy.Furthermore,although China's “Property Law” has included“buildings under construction” in the scope of mortgageable property,legally confirmed the effectiveness of the Construction in Progress Mortgage.However,due to the lack of a clear legal and theoretical support for the establishment of the Construction in Progress Mortgage in the process of implementation,the effectiveness of the Construction in Progress Mortgage also has a great controversy during the judicial practice.By comparing the aspects of mortgage registration authorities,the establishment of the Construction in Progress Mortgage and the specific operational procedures for mortgage registration in Liaoning,Beijing,and Kunming,also by the analysis of the existing Construction in Progress Mortgage System,The following 4 points are summed up by author: firstly,according to the status of real estate registration system in China,the Construction in Progress Mortgage System is still at an exploratory stage,the nature of the Construction in Progress Mortgage registration is not yet clear,the academic circles have conducted intense discussions around the "End Bureau Registrar" and "Pre-registration Registrar".Secondly,the object of the Construction in Progress Mortgage cannot be specifically determined.Compared with general collateral,uncompleted construction is in a state of uncertainty.At present,some scholars believe that the object of the mortgage of the Construction in Progress Mortgage includes two aspects: one is the completed construction subject,and the other is the use right of the land which is occupied by the project;some scholars believe that the object scope of the Construction in Progress Mortgage should include the entire construction project and the land use rights,including both completed and uncompleted parts.Thirdly,there are deficiencies in the censorship system for projects under construction.There are two key links in the establishment of mortgages for projects under construction,including the establishment of mortgage relationships and the registration of mortgage rights after the establishment of the relationship.The conditions adjust to construction-in-progress works that can be available for mortgages should be clearly explained by two issues.First point,the specific scope of “the right to use construction land within the scope of projects under construction and its occupation”;and second point,“measures with exchange value.Fourth,the management of information of mortgage registration under construction in progress ishighly de-normalized.The “ Temporary regulations on real estate registration ” in 2015 clearly stipulated the implementation of a unified registration system for real estate.In terms of the regulations,the nationwide registration of real estate is guided and supervised by the Ministry of Land and Resources,there should be only one agency specifically responsible for managing local affairs,but which should be the liable agency? It is merely be stipulated that "determined" by the local people's government at or above the county level.By analyzing the four phenomena above,three recommendations were proposed on the issue of the establishment of a mortgage system for construction in progress in China.One is to establish a unified registration system overall the situation as soon as possible.This is not merely an crucial precondition for perfecting the system of establishing mortgages for projects under construction,but it is also the primary issue that needs to be solved in registration management system of real estate in China.The second is to standardize the special management system for registration information of mortgages for projects under construction,and establish a database of information of mortgages rights for construction in progress to complete the registration system for mortgages under construction in progress.Finally,we should also improve our country's relevant laws on the Construction in Progress Mortgage System,establish a unified the Construction in Progress Mortgage System throughout the country as early as possible.