SMSF limited recourse borrowing arrangements that do not comply with the law can cause considerable problems for SMSFs and some trustees may not be aware of the serious consequences. Some of these arrangements, if structured incorrectly, cannot simply be restructured or rectified and can result in the SMSF needing to sell the property at a substantial loss.
JMA legal has prepared a package for the implementation of a limited recourse borrowing arrangement. We can also liaise with banks to ensure their requirements are met.
The package includes ($1,320 + LPI registration fee for caveat):
• Limited Recourse Borrowing Arrangement Deed
• Custodian Resolution
• Trustee Resolution
• Caveat noting the SMSF’s interest on title (for property) post settlement.
Any advice including negotiation with lenders and subsequent amendment to documents is additional.
If a corporate custodian is required, our fixed fee to set up a company is $990 incl.GST (this includes an ASIC fee of $565).
If you would like further information please contact Linda Alexander, Amanda Tully or John English from our Commercial Team.