Legal Issues Research Of Trust-based Real Estate Securitization In China

As demand levels rising, the existing financial system need to adapt to the economicdevelopment and constantly update, asset securitization as a new financing tool arises at thehistoric moment. Because of their own characteristics make real estate financing model of asingle, real estate securitization is proposed to solve the problem: introducing Trust theorywhich makes the real estate investment into more liquidity capital securities to broaden thefinancing channels, in addition, the trust system has the nature of the long-term planning andrich elastic space, can protect the beneficiary interest large degree, so the real estatesecuritization countries widely used in practice; at the same time, real estate due to its owncharacteristics, links in the process of securitization transaction, risk isolation andrequirements, happen to coincide the trust system. With the trust as a real estate securitizationsupporter practice has more development, so present the trust type real estate securitizationmode of operation, highlight key link, analysis of our country legal value, promote the assetsecuritization in the proportion of real estate financing is great significance.In the development of our country’s real estate securitization in Trust type, certainly willhave the localization, change the Trust system and the legal tradition not adaptability,especially the transaction of asset securitization is complicated, China’s current legislation andpractice still exist deficiencies, using the principle of Trust, to construct the whole operationsystem of real estate securitization.The paper is divided into four parts:The first part, discribes the basic content of the real estate securitization. First of all,from the origin and definition of scholars from different angles of assert securitization,analyzes the concept and legal characteristics of real estate securitization; Secondly, based onthe real estate securitization of two types, clarify the paper discussed the main object is RealEstate Asset Trust, and discuss the legal relationship between two types.The second section introduces the institutional framework of real estate securitization.Mainly includes the establishment of Special Purpose Vehicle, operation flow; as a supporter,the establishment of Special Surpose Trust, the legal requirement, asset transfer, risk isolationand special attention; the beneficial right; investors interests protection. Analysis of real estatesecuritization specific links of operation and establish the overall framework.The third part is China’s real estate securitization practice environment. From the market maturity, legal system, financial supervision and the trend of future development fourdimensions.The fourth part is the legislation idea of the development of China’s real estateecuritization. Though analysis some problems such as basic legal relationship are not clear,fulfillment the right of the Trustee, bankruptcy_remote, investor protection. And the sametime, combined with the problems in practice to put forward the corresponding legislationidea.