What does a real estate trust mean?

Real estate trust, called "Real Estate Investment Trust" in English, has two meanings: first, real estate trust refers to the legal relationship in which the owner (client) of real estate transfers the ownership to the trustee for the benefit of the beneficiary or for a specific purpose, so that it can be managed and used according to the trust contract.

Second, the real estate fund trust refers to the act that the trustor entrusts the legally owned funds to the trust and investment company based on his trust in the trust and investment company, and the trust and investment company invests the funds in the real estate industry for the benefit of the beneficiary or for a specific purpose, and manages and disposes in its own name according to the wishes of the trustor. This is also a widely used real estate financing method in China.

Extended data:

The data and information of the rapid growth of real estate trust scale and the shortage of funds of real estate enterprises show that there is a big credit risk hidden in the trust industry in China at present. China's trust industry has not yet established a perfect information disclosure platform, and there is a serious information asymmetry problem.

When signing a trust contract, investors can know the expected rate of return of the purchased trust plan and the general situation of the trust fund investment projects. However, the trust contract reveals little information about the real estate project company's operating ability, past performance, ways for investors to understand the project development progress and the use of funds, and the risk warning is insufficient.

Baidu encyclopedia-real estate trust