|Tenants in common agreement||POA|
|Commercial, investment and related agreements||POA|
Tenants in common agreement
A tenants in common (‘TIC’) agreement outlines the terms and conditions relating to the ownership of real property that is owned as tenants in common. A TIC agreement can provide certainty in situations such as where one co-owner wants to sell at a price that the other co-owner does not agree to. The TIC agreement has a process to overcome deadlocks and disputes in arriving at fair market value.
Our TIC agreement package covers, amongst other things, death, disablement, compulsory and voluntary sales. The package includes:
- detailed agreement;
- detailed explanatory memo;
- covering letter; and
- trustee resolutions.
The unitholders’ agreement governs the dealings between the unitholders to ensure the arrangement complies with superannuation law. In particular, the unitholders’ agreement has been specifically drafted to address the scenario where two unrelated SMSF trustees invest in a unit trust and wish to ensure the unit trust is not a related trust of either fund for the purposes of the in-house asset provisions under superannuation law.
The unitholders’ agreement is tailored to address in the following key issues in a manner that complies with superannuation law:
- Control of the trust
- Decision making powers of each unitholder
- Issue, transfer and redemption of units
- Default of a unitholder under the terms of the unitholders’ agreement, including the relevant trigger events and consequences
- Ability of each unitholder to appoint a director of the corporate trustee
- Dispute resolution mechanisms
- Requirement to deal on arm’s length terms and at market value
The unitholders’ agreement is a bespoke document that is tailored to reflect the circumstances of the particular transaction and the arrangements between the parties to the transaction.
Commercial, investment and related agreements
We can provide advice, drafting input and feedback on a range of other agreements that relate to SMSFs.