Our Real Estate Mortgage And Avoid Legal Risks

Mortgage term originated in the common law countries, its Englishname is “Mortgage”, after the incoming in Hong Kong, and theCantonese transliteration is “mortgage”. It was transplanted to themainland of China by Hong Kong in the early1990s,20th century, but itusually refers to the real estate mortgage in the mainland of China now.Mortgage blends of trading and loaning behaviors, the introduction of itproduced great convenience to the mainland of China’s real estate market,it also promoted the vigorous development of China’s mainland realestate finance market. However, laws on mortgages are relatively little inthe mainland of china, and there do not exist clear provisions of themortgage, the mortgage exists only as economic and trade terms ratherthan legal terms in the mainland of China. Therefore, the definition ofmortgage is not clear and the lack of corresponding clear laws andregulations in mortgage practice make are the main issues now. Inpractice, the mortgage market has become disorganized, the main partiesinvolved in the mortgage largely facing large and small legal risks. Howit can effectively circumvent the problems became urgent need to beconsidered. The title of this paper “China” refers to the mainland ofChina, the following are referred to as “China”. In this paper, the authorwill discuss the main legal risks and the methods of risk aversion aroundthe banks, developers, buyers. The author will divide the paper into threechapters; the main contents are as follows: The first chapter is theoverview of mortgage system, followed by an overview of Anglo-Saxoncountries, mortgage system in Hong Kong and mainland China, and theauthor will give a qualitative analysis for the nature of mainlandmortgage system. The second chapter will introduce the legal risks facedby the individual party and the reasons for the mortgage principal.Followed by this, the author will give an analysis on the legal risks facedby banks, developers and home buyers and the reasons of legal relationsin the process of mortgage. Chapter three will introduce the China’s realestate mortgage legal risk aversion and optimization. Here the authorwill introduce some foreign countries and Hong Kong mortgage experience to provide some inspiration for our problems encountered inthe real estate mortgage, and analyze the legal risk aversion measuresand their inadequacies that China’s real estate mortgage taking now, theauthor will put forward some optimization programs on the basis offoreign advanced measures that seek to avoid the legal risks faced by thevarious entities in the mortgage in China to promote the prosperity anddevelopment of the real estate mortgage market. Limited as of space andtime, the paper cannot help but save omissions, the author will makeefforts and keep on learning to improve and be perfect in the future.