SMSF Property Purchase: Confusion between states could result in double duty
With the influx of buyers from the East, agents are warned to be very vigilant when writing offers for purchasers being SMSF entities that are subject to finance.
If the entity is not correct it can cause all sorts of issues.
SMSF subject to finance entities, must have developed a Bare Trust Deed nominating the property to be purchased prior to making the offer to comply with WA laws for duty.
Opposite so are the rules in the Eastern States, the Bare Trust can be created and nominated after the contract is in place.
Solution: when dealing with this situation strongly recommend that your Eastern States clients seek and request legal advice from a Western Australian property lawyer with experience in the subject.
Our senior Conveyancers have recently gone through extensive training to understand these requirements and can be called, at any time, to assist.
Click here for the recent memo from Capital Legal to assist real estate agents.