Study Of The Legal Issues Of Real Estate Securitization

The real estate industry has always been an important industry relating to the national economy and the people's livelihood, also a pillar industry of the national economy. However, special features of the real estate industry, such as high demand on capital, long investment cycle and high risk, lead to a heavy dependence on banks, difficulties in financing, and even bad assets. With its exquisite structure and unique functions, real estate securitization serves as a bridge between both supply and demand for funds to meet their needs. Therefore, real estate securitization which was successively introduced to many countries, has become a new trend in the development of real right and creditor's right.In China, theoretical research on real estate securitization is still in its initial stage, most of the research results are limited within the financial area, where some foreign financial theories and practices were introduced. And some concepts are vague. In legal domain, almost no inquires were made on legal analysis of real estate securitization and_corresponding system adjustment of laws and regulations. This paper is intended to introduce, research and explore the legal issues of real estate securitization, thus accelerate the construction and development of real estate securitization in China, and therefore promote the innovation and healthy development of real estate industry and law.In this paper, comparative jurisprudence, analytic jurisprudence and analysis of demonstration are mainly and coherently applied as research methods. The first section gives a profile of real estate securitization. First, attempt to give a precise definition of real estate securitization, differentiate and analyse the definition of real estate securitization, assets securitization, realty securitization, and mortgage backed securitization, then introduce the features and functions of real estate securitization. In section two, overseas classifications of real estate securitizations and relative rules of law are discussed, mainly taking the United States, Japan and Taiwan as examples, not only just to introduce but also to analyze the legal theories implied. The third section takes legal analysis of real estate securitization. First summarize the systematization of overseas real estate securitizations. Then combining with realities of China's financial industry and the real estate industry, analyze the process of real estate securitization, then give a legal analysis on main body of real estate securitization in light of China's legal theory. Finally, legally analyze real estate securitization in depth. The fourth section describes the status quo of China's real estate securitization, analyzes and investigates the legal drawbacks in Real Law, Banking Law, Trust Law and Company Law, etc. which have a side-effect on the establishment of real estate securitization in China at the present time._Then submit the countermeasures to constitute the "Regulations on Real Estate Securitization".