Independent Legal Advice for SMSF Commercial Property Loans

SMSFs can still borrow to buy commercial property that qualifies as business real property. The lender will usually require members and trustee directors to receive independent legal advice before they sign the guarantees.

Advice on the loan, guarantee and mortgage documents
Both members covered in 1 Teams meeting
$800 + GST fixed fee
Certificate returned to you or the lender

Send Us the Loan Documents

What is still allowed

Commercial Borrowing Continues After August 2026

The changes that took effect on 10 August 2026 apply to residential property. An SMSF can still use a limited recourse borrowing arrangement to buy property that meets the definition of business real property.

Commercial zoning alone does not make a property business real property. What matters is that it is used wholly and exclusively in a business, which is why the intended use of the premises should be settled before exchange rather than after.

Many of these purchases are leased back to a business the members own. That lease sits alongside the loan, and the guarantees the members sign can be called on if the business stops paying rent and the fund cannot meet the repayments. The independent advice is where that connection is explained.

Corporate Legal provides legal services only - not financial, taxation, investment or credit advice. Whether a property qualifies as business real property, and whether the purchase suits your fund, should be confirmed with your SMSF accountant or adviser.

SMSF property purchases

What we go through

What the Advice Covers

The certificate is signed at the end of the meeting. The meeting itself covers what the documents mean for you personally.

Personal guarantees

Who is guaranteeing, whether each guarantee is limited, and when the lender can call on it.

The leaseback

How rent from your own business services the loan, and what happens to the guarantees if that rent stops.

Lender covenants

Loan to value limits, rental cover tests and valuation clauses that commercial lenders commonly include.

Events of default

The events that allow the lender to require early repayment, including events that relate to the tenant rather than the fund.

Security over the property

The mortgage given by the custodian, and how the limited recourse structure affects what the lender can recover.

The certificate form

Checking that the lender's form names the right people, entities and documents before anyone signs.

Buying commercial property through your SMSF?

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The process

How the Advice Is Arranged

Send the loan pack

The loan agreement, guarantees, mortgage documents and the lender's certificate form, from you, your broker or whoever is acting on the purchase.

We review the documents

We check the pack is complete and identify the covenants and default events that matter for a leaseback.

Teams meeting

The members, or all directors of the trustee company, attend together. We sight identification and go through the documents.

Certificate returned

The documents are signed and the certificate goes to you, your broker or the lender.

What the $800 + GST fee covers

Review of the loan and guarantee documents, 1 Microsoft Teams meeting for up to 2 members or directors attending together, and a signed certificate for each of them. The purchase itself, the lease to a related business and the bare trust are separate matters, quoted separately.

Have the loan documents?

Send Them Through

Why Commercial Guarantees Need Care

The tenant is often you

When your own business is the tenant, a downturn in the business can affect the rent, the repayments and the guarantees at the same time.

Terms vary more between lenders

Covenants and default clauses are less standard in commercial lending than in residential lending.

Not proceeding is a valid outcome

The certificate records that you understood the documents. Deciding not to sign on those terms is also a legitimate result of the advice.

Questions about a commercial SMSF loan?

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Explore:

Related SMSF and independent legal advice services.

Questions About SMSF Commercial Loan Advice

Can an SMSF still borrow to buy commercial property?

Yes. The 10 August 2026 changes apply to residential property. Borrowing to acquire business real property through a limited recourse borrowing arrangement remains available, subject to the usual superannuation rules.

What is business real property?

Broadly, land and buildings used wholly and exclusively in a business. Zoning alone does not decide it, and your SMSF adviser should confirm the property qualifies before you exchange.

Can the fund lease the property to my business?

Generally yes, where the property is business real property and the lease is on arm's length terms at market rent. The lease is a separate document that we can prepare or review.

Why does the lender need independent legal advice?

Because the members and directors are giving personal guarantees. The certificate is the lender's evidence that you understood them before signing.

Are both members covered by the fee?

Yes, where both attend the same Teams meeting. If more than 2 people are signing, or their interests differ, we quote before starting.

Do you act on the purchase as well?

We can, and that is quoted separately. If a conveyancer or another solicitor is handling the purchase, we can provide the independent advice on its own.

Ready to arrange the advice?

Send Us the Loan Documents

We will confirm what the lender needs and book a Teams meeting with everyone who is signing.

Send Us the Loan Documents