The Research On Law System Of Reits

Real estate is one of the pillar industries of Chinese current economicdevelopment.It is typically a capital-intensive industry, with a huge investment and along cycle. The real estate entities with several features like non-removable, indivisible,expensive and so on, making the real estate assets illiquid, prone to the risk of excessiveconcentration of industry investment and the formation of the funding gap, the key tothe survival and development of real estate is its financing work.REITs (Real Estate Investment Trusts), is one product of real estate securitization.It is a collection of social capital and then hire professional management,it provide anew financing channel,could make the effective use of social idle funds, and alsoprovides a channel for small and medium investors to invest in real estate industry.Theycould have the opportunity to participate in the industry income distribution.The Chinese REITs(C-REITs) is currently in its infancy. The inpertect ofthe system made the eal estate industry development limited, and also affects thecountry’s economy.Law is one of the most important factors of the REITs development.In order to ensure REITs could develop orderly in our country, it is necessary for us toestablish a series of laws and regulations.This paper is dedicated to the appropriate law mode on development of C-REITs,using the methods as literature, case studies, comparative analysis and others, Throughthe study and comparison of various models of REITs, to meet the conditions of ourcountry’s REITs development model and supporting the legal system.The paper is divided into five parts. The first part introduces the researchbackground and significance of the REITs, researches the domestic and foreignliterature related, clarifies the research methods used in this paper. The secondpart expounds the definition of REITs, features, development and the type, and carry onthe introduction and comparison of operation mechanism, compares the supportinglaws of American and Asia REITs. The third part analyzes and refines the legal mode ofREITs. There are two main legal framework which are company type and contracttype.The application field and focus of two types are different. The legal rights andresponsibilities of their corresponding. The fourth part analyzes the significanceand current situation of the development of REITs in China, reveals thepresent legal problems. The fifth part proposed how to build C-REITs legal mode.That is, The legal framework of the C-REITs should use the contract type, a unifiedlegislative model type, Specially legislation of C-REITs, to create a good legalenvironment, to establish and perfect the legal system, preferential tax policies, restrictC-REITs operating conditions,standardize its operation mode, to create good conditionsfor the development of C-REITs.