Title Searches
Title searches are now an annual requirement for the SMSF Auditors to be satisfied that:
- The ownership of the property is held in the correct name.
- Evidence that there are no charges over the property, to ensure the fund complies with SIS Regulation 13.14.
From 1 July 2025, the SMSF Auditors will be requesting a title search each year for each property held by the SMSF. The title search will need to be dated after the audit year-end. This means that for the 30 June 2025 year-end audit, a title search will need to be dated 1 July 2025 or later.
Property Valuations
Property valuations must always be recorded at market value and the ATO made a point of reminding SMSF trustees of this last year when they issued over 16,000 letters where an asset was held at the same value for several years.
For residential properties, the process is relatively simple as we will generate an automated desktop valuation through our SMSF processing software.
For commercial properties or farmland, an independent valuation must be obtained within 6 months of 30 June e.g. for the 30 June 2025 year-end audit, it would need to be dated between 1 January 2025 and 31 December 2025. For the next two years after the independent valuation was obtained, the following alternate valuation methods can be applied:
- Net capitalisation method – if evidence is provided of an appropriate market yield, this yield can be applied to the current rent.
- Annual growth rate – if evidence is provided of an appropriate annual growth rate, this rate can be applied to the last independent valuation.
- Comparative sales – recent comparable sales for similar properties in the area can be used.
