We are 3 friends planning to buy a development site with rentable home which will be developed after 1-2 years and till that time it will be rented out. We want to buy in a structure in which we are not jointly and severally liable.
Buying in a unit trust is our preferred option. In this structure, there will be a company as managing trustee in unit trust. We all 3 will be directors in company. We all 3 will also buy units from trust. We know that banks will give us loan to buy units in trust. But we were told that bank will ask for guarantee as well from directors. That's the problem part because guarantee means we are jointly and severally liable.
Is there any way in which we are not jointly and severally liable? Is there any other ownership structure other than unit trust which makes this possible ?
Buying in a unit trust is our preferred option. In this structure, there will be a company as managing trustee in unit trust. We all 3 will be directors in company. We all 3 will also buy units from trust. We know that banks will give us loan to buy units in trust. But we were told that bank will ask for guarantee as well from directors. That's the problem part because guarantee means we are jointly and severally liable.
Is there any way in which we are not jointly and severally liable? Is there any other ownership structure other than unit trust which makes this possible ?