Mum and Dad are the members/trustees of their SMSF which holds a residential property. Mum and Dad want to sell the property to their son at a price supported by professional valuation. The son operates as a licensed real estate agent. If the parties want to transact the sale privately without the intervention of a real estate agent, with independent conveyancing carried out, and not having to pay any sales commission, will NALE apply in this situation?
It is not uncommon for people to buy/sell privately so as to save real estate agency commission.
Your advice please.
Hi Stephen
If the sale price is supported by an independant valuation I can see no issue with what is being proposed.
The SMSF just needs to provide documentation to support that the property is being sold on an arm's length basis and that it complies with Section 109 of SIS.
Thanks
The Auditors Institute