Bare/Property Trust Service
The Superannuation Industry (Supervision) Act 1993 (Cth)(Act) permits a regulated superannuation fund to borrow money under an arrangement under which:
- the money is or has been applied for the acquisition of a single acquirable asset, including expenses incurred in connection with the borrowing or acquisition, or in maintaining or repairing the acquirable asset, money applied to refinance a borrowing; and
- the asset is held on trust so that the fund trustee holds a beneficial interest in the asset; and
- the fund trustee has a right to acquire legal ownership of the asset by making one or more payments after acquiring the beneficial interest; and
- the loan taken out by the fund trustee is limited recourse limited to the asset itself and no other assets of the fund.
Therefore the trust (commonly called a bare trust) is a key component within the legal structure to enable the fund to borrow.
The Bare Trust package has been developed to ensure compliance with the Act and to accommodate the requirements of most commercial lenders.
If a particular lender requires changes to the documents for any reason, please let us know and we will make the necessary amendments free of charge.
Contact one of our experienced specialists on 1800 799 666 with any enquiries. To order the Bare Trust package, please email a completed order form to info@docscentre.com.au
We can prepare Bare Trust documentation for both a bank or related party loan to the Super Fund. For non-bank loans, we also offer a related party loan documentation package.
Our documentation can be utilised for both residential/commercial property and non-real estate assets such as ASX listed shares.
We apply the highest degree of due diligence when preparing the Bare Trust and loan documentation to ensure SIS Act compliance and that the lenders requirements are met.
If required, we will liaise with any of the various parties typically involved in an LRBA transaction, (eg. bank, conveyancer, real estate agent, lenders legal department etc.).
The Property Trust Package is $660 and includes the following:
- Custodian/Bare Trust Deed;
- Limited Legal Letter of Review;
- Minutes of Meeting for any/all Corporate Trustees;
- All documentation individually hand prepared;
- Legal Support.
Non-Bank / Related Party Loan Documentation
A related party loan documentation package is also available. The cost for this package is $660 and includes the following:
- SIS Act Compliant Loan Agreement;
- All documentation individually hand prepared;
- Legal Support.
We can also facilitate LRBA documentation for the purchase of non-real estate assets such as ASX listed shares.
For more information contact us on 1800 799 666 with any enquiries.
There may be tax, duty or other costs associated with the enclosed documents. We recommend that you contact the local revenue office in the jurisdiction where dutiable assets are located or which may have jurisdiction in relation to transactions involving the Bare Trust to confirm any duty and other obligations and the required documentation to be lodged. You should seek professional legal advice from an appropriately qualified person regarding the possibility of tax or duty applying to these documents.