am not sure...practically how can this be achieved?
Off-the-plan. No finance clause - URGENT help please
- Thread starter arruga
- Start date
am not sure...practically how can this be achieved?
My understanding is (I'm no lawyer)......So long as the SMSF used its own funds as the deposit (not borrowed) and the agreement/contract to purchase was in the name of the trustee of the holding/bare trust (this needs to be set up prior to entering into the agreement) all should be OK.
When the building is completed and settled the acquirable asset is then placed in the holding trust at the same time as the the borrowing is commenced.
but, if it goes per shaped and the vendor sues, the other SMSF assets are at risk?
Not often. 2 times in the last 3 years for clients from memory. I don't do much OTP but from memory both were smaller developers and needed the contract to get to 50% sale for financing of the project from my guess. I suspect my special condition annexure may have got "lost" when they were forwarding a copy to their bank.
The super fund has not contracted to do anything. The only thing it is risking is the amount of deposit paid.
Remember the holding/bare trust entity is the entity signing the agreement and its just a $2 coy with no assets.
He does seem to know his stuff unlike most of people who inhabit conveyancing land.
but isn't it the same as any other trustee in that it has right (and obligations) to be indemnified by the trust? or is an SMSF trustee different?
Similar threads
