When it comes to buying or selling property, things can get complicated quickly, especially if the property is owned by a trust, a company or shared between several people. These kinds of ownership arrangements, often called complex structures, are more common than you might think. They’re often used in investment deals, for family wealth planning or simply to protect valuable assets.
If you’re involved in a transaction like this, here are five important things to keep in mind.
1. Who Actually Owns the Property?
This might sound obvious, but it’s essential to be clear about who the legal and beneficial owners are. The legal owner is the person or entity listed on the title, but in complex arrangements, the person who actually benefits from the property might be someone entirely different. For instance, a trust might legally hold the property, but it’s managed or used on behalf of someone else.
Getting clarity on this early helps avoid confusion, ensures contracts are signed by the right people, and keeps the deal moving smoothly.
2. Check for Any Restrictions or Special Rules
When properties are owned by trusts, companies or multiple individuals, there are often extra layers of rules. These can include needing approval from directors or trustees before any sale can proceed, or dealing with legal clauses attached to the property title.
There might also be additional legal checks, particularly if the ownership includes overseas parties. Your conveyancer should take a close look at the paperwork early on to catch anything that might cause delays.
3. Don’t Forget the Tax Side of Things
Complex ownership can lead to complex tax situations. While your conveyancer won’t give you financial advice, they need to be alert to the potential tax consequences, such as , Land Transaction Tax, Stamp Duty, Capital Gains Tax or Inheritance Tax. These taxes can apply differently when trusts or companies are involved.
It’s wise to involve your accountant or tax adviser so they can work alongside your legal team and ensure everything is structured in the most tax-efficient way possible.
4. What Does the Lender Need?
If you’re borrowing money or using a mortgage, the lender will usually require extra documentation when a property is owned through a trust or company. They may ask to see trust deeds, shareholder agreements, or even request personal guarantees from individuals connected to the ownership structure.
An experienced conveyancer will liaise with the lender early in the process to make sure all requirements are met without causing delays.
5. Think About the Future, Not Just the Deal
When ownership is more complex, it’s important to think long-term. What happens if someone wants to sell their share in the future? How does the structure affect succession planning or inheritance? Are there any rules in place that could limit future flexibility?
A good conveyancer will help you review these considerations to ensure your current transaction supports your future goals.
“The truth is, complex ownership doesn’t have to mean a complicated transaction, if it’s handled with the right expertise. Getting clear legal guidance early can save time, money, and a lot of stress down the line,” comments Robin Street, Associate.
Need advice on a complex property matter? Our experts can advise on high-value, multi-party and structured ownership transactions.
