Related Party Transfer

I'm looking to transfer a property that is in my self managed super fund into my personal name. I've purchased and sold property before but not at the same time Can a standard conveyancer undertake this?

 

depends what you mean by 'undertake'. Transfer title without advice, then yes

 

Can you do a SMSF "sale" to personal name?? I'm pretty sure you can't do it the other way around but not sure if you can do it backwards.

 

@styereye - Is this a commercial property? If not, you are likely to fall foul of the SMSF regs.

 

No its residential and I've been advised this is allowed. Maybe I need to get a second opinion

 

buying from a SMSF at market value should be ok, but not selling to a SMSF.

 

Why do you want to do it? Whats the benefit?

 

My wife and I need to close the SMSF (the costs are too high to run) and want to keep the unit.

 

The sale will need a contract and will be settled just like selling to a 3rd party. I would suggest speak to broker to determine if you can access the finance to do this then seek legal advice on having a contract drawn up etc.

The auditor of the fund is likely to seek evidence of the market value being fair. Given its a related party transfer a market valuation is needed for duties. The valuation would serve both purposes.

I have seen someone do this and the auditor find adversely because they deducted from the market value the notional agent fee that would have been paid. The auditor disputed this.

Also check any existing PM contract. They may seek to hit you with an agent fee in some cases

Once the sale occurs your smsf can be wound up and rollovers made. Discuss with accountant etc for process and timing of this. Audit still has to occur and allowance for these costs accounted for.

 

What kind of agent fees? It won't affect the PM at all. It's currently rented and will continue to be.

 

should also obtain legal advice on whether there are any stamp duty exemptions depending on the State the property is located

 

Check if this will create a CGT event.
Marg

 

It will

 

Legally this is a change in ownership of the property, the same as if you bought from an unrelated party. You must treat it as such.

The previous contract with the PM was signed by the trustee (?) for the SMSF.

A change in ownership of the property (to you personally) will require a new contract with the PM so they can begin to act for the new property owner, you. You will also need a new tenancy lease in the changed name, which may involve fees.

Keep things legal. Once the “sale” goes through, notify the PM. Otherwise they will be acting without legal authority from the new property owner (you).
Marg

 

Yes but the NSW exemption can be awefully difficult to comply with going forward and winding up the fund is a great example of the problem. One of those matters the instructing solicitor should address. Its why I'm always saying use a solicitor not a conveyancer. Duties Act is legal advice.