Research On The Legal Issues Of Reverse Mortgage In China

Reverse Mortgage, also known as “ pension with house ”, its legal mechanism will be described as follows. First an old borrower who has been reached a certain age guarantee a authorized lending institution with the house of his own property. Next the lending institution agreed the house as collateral for the loan, how to get a loan amount is the core of the system, on the basis of its future value of the house, deducting application fees, insurance costs, transaction costs and other related fees, the lending institution will get a total loan. At last, the lending institution will pay to the old borrower in the form of one-time or a regular monthly cash. When the reverse mortgage loan is due, the lending institution will be repayed by obtaining the ownership of the house or a repayment from the old borrower or his heirs, and then the lending institution return the house to borrower. Although the legal basis of reverse mortgage is property guarantee system, and because of the spirit of the elderly rights priority protection, reverse mortgage is different from commercial guarantee, for example, specific object, no-resource protection, habitatio protection, shared appreciation, recovery right and so on.With a unique role to solve the problem of the aging, reverse mortgage has been widely spread in western countries and some Asia countries and regions, also an important supplement of social security system. Now China is also facing serious aging problem, but in the process of introduction of the reverse mortgage, we have to confront with some obstacles, such as the traditional concept and the conflict of laws. This paper aimed at the main legal issues, learning from some mature foreign experience, proposing the legal countermeasures in establishing the system in China, so that reverse mortgage can become one of the effective ways to the elderly pension in our country.In addition to preface and conclusion, this paper is organized as follows: The first chapter is an overview of the reverse mortgage system. I will mainly analyze the law elements and the legal basis from the legal concept and the legal characteristics of reverse mortgage. The second chapter is the legal obstacles in establishing the reverse mortgage system in China. I will mainly discuss from five aspects: the legal body obstacle, the legal object obstacle, the legal process obstacle, the legal supervision obstacle and the dispute resolution obstacle. The third chapter is the establishment of reverse mortgage in China. I will mainly put forward legal countermeasures from five aspects: clearly define the legal body qualification, clearly classify the legal object scope, scientifically design the legal process, perfect the legal supervision, improve the dispute resolution. The third chapter is the focus of this paper.