Study On Reverse-Mortgage In The House-for-Pension Program

With the development of aging problem in China,House-for-Pension Program,as a new way to cope with the issues appeared in graying population,has been a hot topic among the society and the professionals.House-for-Pension Program can be understood from the microscope and the macroscope.The former means a method used by the house-rich-cash-poor aging people,converting the real estate into cash flow by means of renting,swap renting or selling the house;while the latter mainly focus on Reverse-Mortgage Loan specifically.This paper intends to pay close attention to Reverse-Mortgage Loan,a kind of financial derivatives which takes the elderly as the target customers;and the system involves in lots of civil legal issues such as civil capacity of the elderly,family joint property,the condominiums ownership,mortgage,inheritance,and notarization.Therefore,during the construction of House-for-Pension Program,it is advisable to mind the fairness of the civil subjects in the complicated multi-lateral relationship;specify the rights and obligations of real estate owner,banks,insurance companies,etc.;regulate the procedure of Reverse Mortgage;improve the legal redress system aiming to protect the right of parties involved to circumvent legal risk and accompanying ethical crisis and social moral hazard.The author plans to take Reverse Mortgage in House-for-Pension program as the center of this paper,distill the basic definition and characters base on the study of domestic and overseas related researches.Since there are barriers in the field of Property Law in the practice of Reverse Mortgage,and debates on the legal nature of Reverse Mortgage,the author will first put more efforts in the civil legal relations and analyze the related multi-lateral civil subjects,legal rights and obligations and the potential legal risks;and then propose reasonable practice of House-for-Pension Program in China,which can evade the related risks and protect the party concerned,especially the aging.And finally add numerus clausus principle in the Property Law and introduce the Fluidity Clause into the construction,strengthen the administrative and legal regulation of House-for-Pension Program with the reference of overseas conducts.