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Related party property transfers

Residents of NSW, Western Australia and Victoria have the opportunity to transfer business real property they hold in their personal name into their self managed super fund and pay little or no state duty on the transfer. Some states require the fund to purchase the property, which it can do by borrowing if it wishes. In NSW it can be purchased by the fund (with or without a loan) or transferred as an in-specie contribution or partly purchased and partly contributed. These transactions are full of traps for the unwary so you would be well advised to use the tailored documentation we have honed from the many we’ve handled for clients.

Duty pack

Advice on how to avoid double duty going in and more duty coming out, and relevant declarations and correspondence to help you with your local state duties office.

Gearing pack

A full explanation of how the transaction works so as to avoid problems, confirmation of your fund’s compliance with the relevant requirements, the holding trust deed and all the necessary company resolutions plus a service desk for procedural problems you might have with implementing the loan arrangements.

Guides to SMSF Gearing

Townsends Lawyers Guide to SMSF Borrowing (Volumes I and II) provide a detailed commentary on all aspects of limited recourse borrowing.

Lease pack

All the important records evidencing the fund’s decision and its directions to the holding trustee to lease the property and secure the investment return.

Loan pack

Agreements and security documents for all parties to a related party loan plus implementation including registration with state land titles registers.

Refinancing pack

A new set of documents for a new loan permitted by the legislation, but subject to ATO conditions so seek advice to be sure.

Unwinding pack

Advice, documents and implementation of unwinding the loan and transferring the property to the super fund.

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