When you have to purchase a new property, you need to hire a solicitor or licensed conveyancer who has an expert understanding of property law. Over 60 percent of all legal heedlessness claims are a result of conveyancing mistakes, so it becomes essential for you to get a support of a professional who can protect your interest if any transaction is disputed.
If you are planning to buy a new property with your SMSF (Self Managed Super Fund) then here are few steps you need to follow:
1. SMSF must be consistent with the ‘sole purpose test’. This means that the SMSF must have a sole purpose which it will follow in order to provide benefits upon death or retirement of the members. SMSF cannot purchase a property in order to allow the members to live in the property or pay rent. Members or their related parties also cannot shift or rent the property, even though it was previously rented to another party.
2. The property cannot be acquired from a ‘related party’ of the SMSF. A related party of the SMSF is a member of the SMSF, an employer-sponsor of the SMSF or a ‘partner’ of either of those existences.
3. The SMSF also cannot lend money to finance the purchase, except through a limited recourse borrowing arrangement. Whereby, the limited resource means the money borrowed to acquire property such as conveyancing fees or stamp duty.
You can take help from special SMSF conveyancer who will tell your rights in buying the property easily.
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