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Kylie Wee

Mar 12, 2024

Different property address in Loan agreement and Bare trust deed

in SMSF Technical Forum

Hi All,

Hope all of you are well.

I am currently auditing a Fund which has invested in an investment property. Per review to the property related documents such as bare trust deed and loan agreement with CBA, I noted that the address of the investment property differs to the address of the other property documents such as rates notices, lease agreement, etc. As advised by the Fund's accountant, the different address is due to the property being acquired off the plan and was a large development across 3 blocks that were consolidated. The correct address has changed upon completion of the development.

Could anyone advise if the bare trust deed and loan agreement needs to be updated with the new address as the accountant informed that there is no such requirement to amend? Would this warrant a qualification and ACR?

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Mar 12, 2024

Hi Kylie

My view is that there is no requirement to update the bare trust deed and the loan agreement to the final property address. As a result, there would be no need for an audit qualification or an ACR. The auditor should request paperwork to support that the property address that was recorded for the off the plan property has converted to the final actual address.

Thanks

The Auditors Institute