Buying Commercial Property Through an SMSF: What You Need to Know Before You Sign Anything

Why SMSFs Are Having a Moment

Recent government changes have made an SMSF property purchase a more attractive way to hold property, and commercial property in particular is where the real opportunity sits. We’re property lawyers, not accountants, so we’ll keep this general: the 2026-27 Federal Budget left the capital gains tax treatment and negative gearing arrangements for superannuation funds unchanged, even as new restrictions landed on individuals and trusts buying established residential property. That gap is a big part of why our phones have been busier than usual this year.

Commercial property is also where SMSF loans still offer real flexibility, since the new borrowing restrictions are aimed squarely at residential property and leave commercial alone. For business owners, an SMSF can hold the very premises your business trades from, a structure that simply isn’t available for most residential purchases. None of this is financial or tax advice, and whether an SMSF purchase suits your circumstances is a conversation for your accountant or financial adviser. What we will say, having seen plenty of these deals come together (and a few come apart), is line up an accountant and a mortgage broker who actually knows SMSF lending before you start looking at property, not after you’ve fallen for one.

No More Loans for Residential Property

From 10 August 2026, SMSFs can no longer take out new SMSF loans to buy residential property, following an amendment to the Superannuation Industry (Supervision) Act 1993. Existing loans can generally still be refinanced, and the change doesn’t touch commercial property at all, which is one less thing for commercial buyers to worry about.

If you were set on a residential purchase through your SMSF, borrowing simply isn’t part of the equation anymore. That’s a conversation to have with your accountant or adviser early, ideally before rather than after you’ve found the property.

Independent Legal Advice: Something Your Lender Will Likely Require

If your SMSF is taking out a loan to buy commercial property, most lenders require the trustees to get independent legal advice on the loan and guarantee documents before any funds are released. In our experience, this is one of the more time sensitive parts of the process, and it can hold up settlement if it’s left too late.

Lenders typically want a solicitor’s certificate confirming the trustees understand their obligations and personal risk under the loan. We regularly provide this advice for clients purchasing commercial property through an SMSF, alongside acting on the purchase itself. Our advice: sort it early. Chasing a solicitor’s certificate the week before settlement is not a fun way to spend anyone’s time, ours included.

Getting the Documents Right Matters More Than Most Buyers Expect

An SMSF property purchase involves more moving legal parts than a standard commercial deal, and the paperwork needs to be right from the outset. A common issue we encounter is trustees engaging a solicitor for the property side without first confirming their fund’s structure actually supports the purchase.

The purchasing entity named in the contract needs to be correct from the start, because fixing this after exchange is a much bigger headache than getting it right before. Your SMSF’s trust deed and any borrowing structure need to be sorted with your accountant or SMSF specialist before you sign a contract, not after. We work closely with our clients’ accountants throughout the transaction, because the legal and financial sides of an SMSF purchase really do need to be talking to each other.

Contract of Sale Traps for SMSF Buyers

The contract of sale is where a lot of SMSF purchases run into trouble, often over details that seem minor at the time. Three things we check on every SMSF contract before it’s signed:

1. The correct trustee entity is named as purchaser, not the fund member personally
2. Special conditions dealing with finance approval and any SMSF specific requirements are negotiated before exchange, not bolted on afterwards
3. Any related party involvement in the transaction is flagged to both your lawyer and your accountant before you go further, not once you’re already committed

Practical Takeaways

• Confirm your SMSF’s structure supports the purchase with your accountant before you sign a contract
• Line up an SMSF experienced mortgage broker and accountant early if you’re borrowing
• If borrowing, expect your lender to require independent legal advice from a solicitor before settlement, and organise this early
• Make sure the correct trustee entity is named in the contract from the outset
• Remember new SMSF loans for residential property are no longer available from 10 August 2026

Buying Through Your SMSF? Get the Legal Side Right

Jaide Law is a property law firm based in Sydney that regularly acts for SMSF trustees on commercial property purchases across NSW, QLD and VIC, including preparing the independent legal advice your lender may require. Whether you’re a first time SMSF buyer or adding to an existing portfolio, get in touch for a complimentary property call before you sign anything.

Disclaimer — We know most of you get this, but just to be clear, the information above is general and doesn’t consider your unique situation. Please don’t rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.