When it comes to signing the contract as purchaser for an SMSF acquiring property using a limited recourse borrowing arrangement (LRBA), you need to understand the requirements of the state jurisdiction where the property is to be acquired. Where the contract is completed incorrectly, the fund trustee may end up with adverse stamp duty implications (potentially paying double stamp duty).
The following is a summary of the purchaser requirements for the contract for each state and territory in Australia:
- NSW, VIC, TAS, ACT, SA & QLD – the purchaser should sign in the name of the holding (or bare) trustee only. No reference should be made to the SMSF (i.e. “As Trustee For” SMSF)
- WA – the purchaser must use the word “For” between the holding/bare trust and the SMSF name – e.g. Holding Trustee Pty Ltd For Super Trustee Pty Ltd
- NT – specific requirements exist for the purchaser – the contract must be shown as “Holding Trustee Pty Ltd ATF Holding Trust as holding trustee for Fund Trustee(s)* ATF Name of Fund”
* The fund trustee may be a company or up to four individuals