New conveyancing rules to impact SMSFs
Electronic conveyancing rules which apply to standalone transfers are expected to also affect the administration of SMSFs, according to a law firm.
In an online update, Townsends Business and Corporate Lawyers said the national conveyancing rules have been in effect from 1 July 2018 for NSW and require all standalone transfers, standalone mortgages, standalone discharge of mortgages and all refinances to be lodged electronically via an online platform called Property Exchange Australia (PEXA).
While professionals and their clients might think the new conveyancing rules only relate to conventional conveyancing transactions, Townsends said most SMSFs matters will also be impacted by the new rules.
Some of the SMSF matters that will be impacted by the new rules include a change of trustee where the SMSF owns a property, the rollover of benefits between superannuation funds where a transfer of property is involved and buying a property with a limited recourse borrowing arrangement.
The new rules will also impact the unwinding of a limited recourse borrowing arrangement after full repayment of the mortgage and secured loans to an unrelated third party.
Other than NSW, Townsends said most state and territory governments have announced the transition to electronic conveyancing.
“Although their timelines may differ, each jurisdiction’s conveyancing system is undergoing changes in light of the ultimate goal of achieving a nationally consistent electronic conveyancing system,” the law firm said.