Your SMSF Conveyancing Experts
Buying and selling property through an SMSF has many advantages, but the process involves numerous restrictions and guidelines to follow. Our MDL Team consists of committed professionals with a wide range of experience, both within and outside the legal profession.
We work with a wide range of industry professionals and clients who seek our assistance with SMSF property transactions, as most conveyancing firms do not fully understand the intricacies and requirements of this area of law.
The laws surrounding SMSF conveyancing are strict and carry serious taxation and compliance consequences for those who fail to adhere to them. There are restrictions on how you can borrow money, what property you can purchase, and from who, as well as a comprehensive set of compliance documentation that has to be maintained.
The ATO and the industry closely monitor how SMSFs are set up, administered, and the transactions they enter into. They scrutinise all aspects of the conveyancing transaction, including property transfers, leasing, lending, creation of trusts, and transfer duty.
For this reason, it is critical to have an experienced SMSF conveyancer on your side – someone who knows how to navigate this complex landscape and can work closely with your financial planners or brokers to achieve the desired outcome with minimum fuss.
Our team not only possesses extensive knowledge and experience in SMSF conveyancing across both commercial and residential property transactions, but we also take the time to guide clients through the complex steps involved, including:
Buying or selling in a SMSF
For the property to be eligible for purchase within an SMSF, it must satisfy the sole purpose test and single acquirable asset rule. Specific steps must be carefully followed to set up a purchase that qualifies as a single acquired asset under SMSF investment rules. Establishing the correct entity (usually a bare trust) and ensuring the timing of signing the purchase contract are critical for compliance.
The process for selling a property in an SMSF is similar to selling any regular property. However, special attention must be paid to where the proceeds from the sale are directed and how they are distributed back to the trust and SMSF. Sellers should also include tailored conditions in the sale contract to ensure their interests are protected.
Off-the-Plan Contracts
There are specific risks and restrictions when purchasing property with an SMSF. For instance, an SMSF cannot purchase vacant land for construction. Therefore, an off-the-plan purchase can only proceed if the entire transaction is structured under a single contract – typically for a completed unit, townhouse, or house.
Funding Arrangements and Solicitors Certificates
Many clients assume that borrowing in an SMSF is the same as borrowing personally. However, SMSFs are required to use specific funding arrangements such as a Limited Recourse Borrowing Arrangement (LRBA). These arrangements come with unique requirements that must be maintained not just as establishment but throughout the life of the loan. Failure to comply with these requirements could breach the LRBA and result in significant consequences for the trustees and the SMSF.
Borrowers and guarantors in SMSF transactions often need to obtain independent legal advice before they can draw down on their loan.
A solicitor’s certificate confirms that you have received this legal advice. As part of this process, we carefully review the loan contract, mortgage, guarantee, and associated documents to provide a summary of your obligations under the loan.
Bare and Nominee Trusts
A bare trust is essential to ensure compliance with SMSF regulations and state transfer duty laws. Properly establishing the trust prevents double transfer duty. Importantly, the trust must be created and executed before signing the purchase contract. We ensure all documents meet state and Commonwealth laws, as well as the lender’s specific requirements.
SMSF Title Amendments
Once the loan is fully paid, the property must be transferred from the bare trust company to the SMSF in its own name. This process involves certifications, statutory declarations, and compliance with transfer duty laws. Our team handles this process for clients and their advisors, managing all requirements from start to finish.
Client Testimonials
Looking for a conveyancer in Brisbane that values strong client relationships? Choose the Brisbane property law firm that genuinely looks out for your best interests, protecting your business and personal legal needs.
Both Colleen and I agree that from our experience with various legal conveyancing personnel across three countries, Carmen was the single-most excellent mix of professionalism and personalism. She went above and beyond the call of duty to achieve a successful end.
She was punctual, personable, professional…and patient. Perhaps this is just par for the course with MDL – but we were indeed impressed.
We will continue to employ any future conveyancing and legal consultations with MDL, and whenever possible in our worldly endeavours, request your expert advice and the hands-on competency of Carmen Robaldo.
Troy and Colleen Nelson - Cleveland Office
Ross & Lyndon are highly skilled solicitors who have represented Pelican Waters Development for many years. Their legal understanding and clear advice offered in areas of conveyancing, development and property is second to none. No legal matter is ever too big or small and are always willing to listen to our needs. Professional and diligent, they both work extremely hard to achieve the best possible outcome. Thank you very much for all your assistance and help!
The Team at Pelican waters – Brisbane Office
Hi Juliet. Thanks ever so much for your assistance throughout the sale. Your confidence is very reassuring.
