Good afternoon,

I have questions in relation to segregating an asset in a fund where there are four members and the requirements of signing documentation.

The fund currently owns a commercial property. Two of the members are wanting to buy land and then build a second commercial property on the land, within the SMSF. This will all be paid for by the two members by way of non-concessional contributions into the super fund. The property will be segregated to the two members.

From an audit point of view, there would be no issues segregating the asset?

Are all four members required to sign the building contract/legal documents? Can an updated investment strategy stipulate that the land/property being built is segregated to the two members and that just the two members are able to sign all documents relevant to the commercial property being built, or legally do all four members have to sign?

Are there any ramifications for the two members that don’t “own” the property?

Thank you.