Cost to create a mortgage in QLD for commercial property

Discussion in 'Legal Issues' started by Ace in the Hole, 11th Jul, 2019.

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  1. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Hi Guys,

    Any idea and maybe references to process mortgage docs in QLD for a commercial property?
    We recently bought via SMSF, self funded so created an official loan and accountant has advised we need to set up a mortgage, the property recently settled.

    I'm not happy with the settlement lawyers' services so far who have quoted $3,300 + gst to do this.
    The property was around the 1.8m mark if that makes any difference, via a bare trust set up.

    For those familiar with this, is this price about right and any references would be appreciated.
    I believe they have to be QLD based but not 100% sure.

    Thanks
     
  2. JDM

    JDM Well-Known Member

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    You said you created an official loan.Does this mean you have a loan agreement in place and you just need the mortgage drafted or do you need both a loan and mortgage drafted?

    If it's both of the above, the price is about right and I would be charging about the same.
     
    Terry_w likes this.
  3. Ace in the Hole

    Ace in the Hole Well-Known Member

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    We have an LRBA established and I know the loan repayment schedule, monthly repayments, interest rate, conditions, etc.
    I guess this would be the loan agreement?
    My accountant has already arranged this for us.

    Does this just leave the mortgage to be drafted?
    Is there a cost guide for this?
    I'm not price shopping, but in the case above if the loan agreement is already in place, they would have billed me for doing the same work again without even asking me.
    I only asked them for a mortgage to be put in place.

    Thanks
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    accountant doing legal work?

    this sounds like you might have breached the SIS Act if the property has settled. speak to JDM above. You might need additional advice on superannuation law.
     
  5. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I did say arranged.
    They are qualified to do SMSF work, financial planning and other related work.

    Can an LRBA only be created by a lawyer?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
     
  7. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Thanks.
    I enquired with my accountant about this and they confirmed that the LRBA document was prepared via lawyers / legal document providers.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes but you/ the trustee should be dealing with these lawyers as you are not covered by the law firms insurance. You also have no opportunity to get legal advice on it or to tailor the documents to suit your needs. The accountant would also add on a hefty margin. if the accountant acted in a way other than as a scribe or a message taker they have breached the law. Legal document providers are also generally not law firms.