Case Study – The Impact of Noting the Incorrect Entity on a Contract of Sale
- Anne V.
- Oct 25
- 3 min read
Updated: Nov 14
BY INVITED INDUSTRY EXPERT ANNE V. | Principal SMSF Lawyer
Imagine this: you’ve finally had your offer accepted, contracts exchanged, and your Self-Managed Super Fund (SMSF) is ready to secure a valuable SMSF property investment. Then, mid-settlement, your lender calls — the purchasing entity is listed incorrectly on the contract.
It may seem minor, but the consequences can be serious.
Stamp Duty Complications
If the purchasing entity needs to change after exchange, you may be liable for double stamp duty, along with additional legal costs and delays in title registration. State titles offices may also request additional evidence before approving any change.
Finance Delays
Lenders will not approve the loan if the Contract of Sale does not exactly match the borrowing entity’s legal name. Even a minor typo can delay approval, risking your deposit and potentially the entire deal if the vendor enforces their contractual rights.
SMSF-Specific Issues
Accuracy is even more important when purchasing property through an SMSF. In some states, there is no cooling-off period when a trustee company signs the contract.
Additionally, SMSF contracts often exclude the name of the fund itself for privacy, instead listing:
the trustee of the Bare Trust or Holding Trust,
the ACN, and
the trust name
Before signing any property contract, always have an experienced SMSF solicitor review your Bare Trust or Holding Trust Deed to ensure every detail aligns perfectly.
Incorrect Entity on a Contract of Sale: Why This Matters
These are not small compliance details — they are essential financial safeguards. An incorrect signing name or contraction entity can result in:
double duty or penalty duty
finance approval failure
costly legal delays
unexpected losses
contract termination
A simple paperwork oversight can cost your SMSF thousands.
Getting It Right From the Start
Verify the correct contracting entity and trust structure early in the process. Ensure your SMSF lender, solicitor, and advisers are aligned and experienced in SMSFs— and that all purchasing details match your trust documents exactly.
Noting the incorrect entity on a Contract of Sale can result in unnecessary expenses or even drastic consequences. Addressing these details upfront helps smooth the way for your SMSF property investment and helps ensure a compliant and successful SMSF property transaction.
Finally, choose to work with an experienced SMSF law firm like ours for peace of mind. To explore how our team can assist you, please contact SMSF Intelligence for an introduction.
ABOUT THE AUTHOR:
Anne V. is the Principal of an established five-star rated law firm in Parramatta CBD. With over 12+ years in the legal industry, Anne prides herself on achieving exceptional results across family, property, commercial, transaction and tax law. Ready to connect with the right expert?
NEED GUIDANCE ON A SIMILAR SMSF MATTER?
Every SMSF journey is unique — and sometimes, a quick chat with the right expert makes all the difference. Share a few details below, and we’ll connect you with the most relevant expert to help guide your next step.
DISCLAIMER: The views and opinions expressed in this article are those of the guest expert and do not necessarily reflect the views of the SMSF Intelligence team, its owners, or its representatives and partners. No guarantee is given as to the accuracy, completeness, or timeliness of the content, and we do not accept any liability for loss or damage arising from reliance on the information contained in this article or any linked materials. This article is published for general information and educational purposes only and should not be considered financial, legal, tax, or investment advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before making any decisions based on this content, you should consider its appropriateness in light of your circumstances and seek advice from a qualified professional. We do not provide financial, taxation, or legal advice. Hashtags: #SMSFProperty #BareTrust #SMSFCompliance #PropertyInvestmentAustralia
Comments