Join our investing community

Clock ticking on SMSF property purchase ...Help!

Discussion in 'Superannuation, SMSF & Personal Insurance' started by STEVENQOZ, 15th Apr, 2013.

  1. STEVENQOZ

    STEVENQOZ New Member

    Joined:
    15th Apr, 2013
    Posts:
    1
    Location:
    sydney
    Hi all
    I am new to this forum so I hope you don't mind me kicking straight off with a question. We are in the process of buying a residential property through our SMSF. We have conditional loan approval from Macquarie. My advisor has purchased the Bare Trust company but Macquarie want to see a certified copy of the the trust deed before fully approving the loan. My advisor has said that the Trust is not fully formed until contracts are fully exchanged. ATM we are in a 5 day cooling off period and have paid 0.25% of the purchase price. Can anyone here throw light on what should happen and in what order?
    It seems a bit like a 'chicken and the egg problem'.......Macquarie seem to be asking for something not available until after contracts. Help :confused:
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Is your advisor a solicitor or mortgage broker? Are they up to the job (and legally able to assist?)

    The lender would want to see the SMSF trust deed and custodian trust deed.
     
  3. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Steven
    just did one yesterday for a client and Macquarie asked for exactly the same thing, along with an Accountants declaration so be prepared.

    Depending on which state you are in, eg if it was NSW the Bare trust should signed and dated on or after the date of exchange of the contract.

    we sent them an unsigned deed to start with and that kept the process moving along.

    I think however they are referring to the actual SMSF deed.

    In these cases always good to have the broker, accountant & lawyer talking directly with each other so there is no confusion.