Buying Entity Direction

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Direction Regarding Buying Entity

We confirm your instructions that you are purchasing the property as a Corporate and/or Trustee entity.

You must obtain advice from your accountant or financial adviser as to the correct name of the buying entity and that the trust structure has the power to enter into this transaction.

Please complete this form using that advice.

If you have Trust documentation such as the Trust Deed, a Deed of Variation or Amendment, a Deed of Removal, Retirement, Death or Appointment of Trustee please have these available as electronic files so they can be uploaded.

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Matter Email(Required)

Matter Number(Required)

Property Address(Required)

Type of Buyer Entity(Required)

Company(s)

Company Details(Required)

Company Name

ACN

Please provide the Company Name and ACN (as it appears on the ASIC Register) for each Company which is purchasing the Property.

Is the Company acting as a Trustee of a Trust?(Required)

Yes

E.g. is the Company purchasing on behalf of your Self Managed Super Fund, Family Discretionary Trust, Unit Trust or other Trust arrangement?

Company(s) as Trustee

Company Trustee(s) of Trust(Required)

Company Name

ACN

Please provide the Name and ACN (as it appears on the ASIC Register) for each Company which is a Trustee of the Trust.

Individual(s) as Trustee

Individual Trustee(s) of Trust(Required)

First Name

Middle Name

Last Name

Please name all of the Trustees of the Trust.

Trust Details

Is there a Trust Deed or other document establishing the Trust?(Required)

Yes

Please upload a copy of your Trust Deed & Other Documents(Required)

Drop files here or

Max. file size: 20 MB.

Relevant Documents may include:

1. Trust Deed
2. Deed of Amendment or Variation (if applicable);
3. Deed of Appointment or Removal of Trustee (if applicable).

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WARNING: Check that Deeds have been Stamped

Name of Trust(Required)

The Full Name of the Trust as it appears on the Trust Deed – usually found on the first page of the Trust Deed or in the Schedule.

Type of Trust(Required)

If you have selected 'Other' above, please provide details of the type of Trust(Required)

Date of Establishment of the Trust(Required)

Date of Trust Deed – usually found on the first page of the Trust Deed or in the Schedule. If there is no Trust Deed then this will be the date on which the Trust was created or established.

Is the Trust Deed dated prior to 1 March 2002?(Required)

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WARNING: Check that Deeds have been Stamped

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Stamp Duty

Has any applicable stamp duty under the Duties Act 2001 (Qld) been accounted for?

Does the Trust Deed authorise the Transaction?(Required)

Please confirm that the Trust Deed authorises the Trustees to enter into this Property transaction.

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WARNING: If Related Party, need Authority in Deed or Consent from Beneficiaries

Beneficiaries

The Titles Office requires us to provide information regarding the Beneficiaries of the Trust.

For a Trust with large numbers of Beneficiaries (e.g. a Family Discretionary Trust), you can elect to provide the Clause Number in the Trust Deed which defines the various classes of Beneficiaries (e.g. Primary, Secondary, Tertiary Beneficiaries etc).

This is usually found in the ‘Definitions’ clause of the Trust Deed.

Please select how you wish to define the Beneficiaries of the Trust(Required)

Refer to Clause Number in Trust Deed

List all Beneficiaries Individually by Name

Please select how you wish to define who the Beneficiaries of the Trust are.

Beneficiary Clause(Required)

Please advise which clause of the Trust Deed defines the Beneficiaries. This would usually be found in the ‘Definitions’ section of the Trust Deed.

Beneficiaries of Trust(Required)

First Name

Middle Name

Last Name

Please name all of the Beneficiaries of the Trust.

Are there any Foreign Beneficiaries of the Trust?(Required)

A Beneficiary is considered ‘Foreign’ if they are not an Australian Citizen or Permanent Resident. Please note that the existence of a Foreign Beneficiary may trigger an obligation to seek approval from the Foreign Investment Review Board (FIRB) prior to entering into the transaction.

Further, a Foreign Beneficiary may result in Additional Foreign Acquirer Duty (AFAD) of 7% being assessed on the transaction. Fines and penalties may apply if the existence of the Foreign Beneficiary is not disclosed.

Please provide details of Foreign Beneficiaries(Required)

Full Name

Nationality

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WARNING: Trust includes Foreign Beneficiaries

FIRB:

FIRB Guidance Note 5 – Residential Real Estate – Australian Corporations, Trusts and use of other persons

A trustee of a trust is considered to be a foreign person if:

– an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest in the trust; or

– two or more persons, each of whom is an individual not ordinarily resident in Australia, a foreign corporation or a foreign government, hold an aggregate substantial interest in the trust.

Unit or Fixed Trusts

A person holds a substantial interest in a trust (including a unit trust) if the person, alone or with one or more associates, holds a beneficial interest in at least 20 percent of the income or property of the trust.

Two or more persons hold an aggregate substantial interest in a trust (including a unit trust) if the persons, alone or with one or more associates, hold in the aggregate beneficial interests in at least 40 per cent of the income or property of the trust.

Discretionary Trusts

The trustee of a discretionary trust where one or more foreign persons hold any beneficial interest in the trust is generally considered to be a foreign person in their capacity as trustee of the trust. This is because the trustee of a discretionary trust has the power to distribute the income or the property of the trust to one or
more beneficiaries, such that one person, who may be a foreign person, can have all the income of the trust distributed to them or receive all the assets of the trust.

AFAD:

Public Ruling DA000.14.2 Foreign corporations and foreign trusts—interests of foreign persons and related persons

A trust is foreign if at least 50% of its interests are trust interests of:

– foreign individuals
– foreign corporations
– trustees of a foreign trust
– related persons of any of the above, including partners in a partnership.

‘Trust interest’ is a person’s interest as a beneficiary of a trust, other than a life interest. For a trust that is a discretionary trust, only a taker in default of an appointment by the trustee can have a trust interest.

A discretionary trust will not necessarily be a foreign trust merely because one of its default beneficiaries is a foreign person.

Whether a discretionary trust with a foreign person as a default beneficiary is a foreign trust will depend on the facts and circumstances of each matter. The Commissioner will consider the likelihood of distribution to a foreign person, taking into account the terms of the trust deed concerning any priority or proportion for sharing between default beneficiaries.

Acknowledgement & Declaration
We acknowledge that:

1. bytherules does not give advice on financial instruments, self managed superannuation fund regulations, trusts or structuring of the buying entity and we understand that bytherules will carry out the transaction based on the information provided in this form; and

2. bytherules has advised us to seek independent financial and accounting advice in relation to this transaction; and

3. After having had the opportunity to obtain and/or having received independent financial and accounting advice in relation to this transaction, we have completed this form.

We declare that:

1. The information contained in this Form is true and correct; and

2. Where applicable – any change in Trustee(s) is authorised by the Trust Document, the Trusts Act 1973 or another authorising law; and

3. Any applicable duty under the Duties Act 2001 (Qld) has been accounted for.

We hereby authorise you to sign a Titles Queensland Form 20 – Trust Details Form or electronic conveyancing equivalent on our behalf in reliance upon the above declaration.
Date(Required)
DD slash MM slash YYYY

Full Name of Person completing this Form(Required)
First Middle Last
Signature(Required)
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