What happens if a trustee company goes into liquidation or is deregistered?
We are often approached by clients or accountants with problems relating to their trusts – sometimes the deed has been lost or damaged, or the trust was established some time ago and the terms need to be updated. An issue that has become increasingly common in recent years (particularly following the GFC) is that where a trustee company goes into liquidation or has been deregistered. This can become quite a complex issue to resolve, particularly when the trust owns real property, or when the trust is a self managed superannuation fund. This issue was also recently considered by the Queensland Court of Appeal in Thorne Developments Pty Ltd v Thorne & Anor [2016] QCA 63 (Thorne).
Caveats
One of the more misunderstood features of Queensland’s title system are caveats. We often receive queries from clients asking whether they can register a caveat over the property of someone who owes them money. While caveats can be a useful tool to protect a party’s interest, we always urge caution when using them, as there can be serious consequences to lodging a caveat.
Purchasing property in a Self Managed Superannuation Fund
Notwithstanding lingering uncertainty about the future of limited recourse loan arrangements for self managed superannuation funds (SMSF), acquisition of real property remains a popular investment strategy for SMSF trustees. When considering purchasing real property, SMSF trustees need to be aware of the strict rules that apply, particularly when borrowing money or when purchasing property from entities related to the fund. Given the potentially catastrophic outcomes if a SMSF is declared non-complying, trustees should ensure they obtain proper legal and financial advice before committing to a purchase.
Off the plan contracts – what can go wrong
A recent decision in the Queensland Supreme Court has put into stark focus the potential risks to buyers of properties off the plan who fail to settle.
Foreign Investment Review Board Update
None of us enjoys sending payment reminder notices, let alone repeatedly. If you are not being paid, Ballantyne Law Group’s Commercial Law team can help by issuing a Creditor’s Statutory Demand on your behalf.
