Acquire units in a unit trust

We will help you acquire units in a unit trust with proper due diligence and documentation that protects your investment from the date of transfer.

Unit trust interests are governed by the trust deed, not the Corporations Act. Before you commit, you need to know what rights you are acquiring, whether pre-emptive provisions apply, and what the trust owes. We act for incoming unit trust buyers to make sure the due diligence is thorough and the transfer is correctly documented.

What does it mean to acquire units in a unit trust?

A unit trust divides the beneficial interest in trust property into units held by unitholders. Your rights as a unitholder depend entirely on what the trust deed provides. Reviewing the trust deed and any unitholders agreement before you commit is essential to understanding what you are actually acquiring. Unlike company shares, unit trust interests are not governed by the Corporations Act 2001 (Cth) in the same way, and the protections available depend on what the deed provides.

What rights do I have as a unitholder?

Your rights depend on the trust deed and any unitholders agreement. A well-drafted deed will typically give you the right to receive distributions, vote at meetings, and access financial information — but these rights vary significantly between trusts, and a deed silent on key matters may leave you with limited practical protection.

Do existing unitholders have a pre-emptive right over the units I am acquiring?

Many trust deeds require the selling unitholder to offer units to existing unitholders before transferring to an outside party. If those provisions exist and are not followed, the transfer to you may be ineffective. We review the deed before you commit to confirm the transfer can validly proceed.

What due diligence should I conduct before acquiring unit trust units?

Due diligence should cover the trust deed and any unitholders agreement, the trust’s financial statements and tax position, material contracts, encumbrances over trust assets, and any pending claims. The depth required depends on the size and complexity of the trust.

Is stamp duty payable on the acquisition of unit trust units?

In most Australian states and territories, transferring units in a trust that holds real estate will attract stamp duty on the dutiable value of the trust property. Rates and rules vary by jurisdiction and can significantly affect the overall cost. Stamp duty advice should be obtained before the transaction is structured and priced.

Trust deed reviewed before you commit.

Due diligence that finds what the trust deed does not disclose.

Documentation that records your position as a unitholder from day one.

The trust deed governs everything about your rights as a unitholder. You need to understand it before you buy.

Unit trust acquisitions require different due diligence to share acquisitions. The trust deed, rather than the Corporations Act, is the primary document that determines your rights, and it can vary significantly between trusts.

Buying into a unit trust is not the same as buying shares in a company.

You have agreed in principle to acquire units in a unit trust. But you have not yet reviewed the trust deed, confirmed that the transfer can proceed without triggering pre-emptive rights, or investigated the trust’s financial position. The rights you acquire depend entirely on what the deed provides.

We will review the trust deed and unitholders agreement and advise on the rights and restrictions that apply.
We will conduct due diligence on the trust's financial position, assets, and obligations.
We will advise on stamp duty.
We will prepare the unit transfer agreement and advise on any unitholders agreement needed to protect your position.

You are buying into a unit trust and you need to know what you are actually acquiring.

You have found a unit trust you want to invest in and the commercial terms are broadly agreed. But you have not yet reviewed the trust deed, investigated pre-emptive rights, or confirmed what obligations the trustee has incurred. You need to understand your rights as a unitholder before you commit.

What's included in your unit trust acquisition service

Trust deed and unitholders agreement review and advice.
Due diligence on the trust's assets, liabilities, and financial position.
Stamp duty advice and structuring.
Unit transfer agreement preparation and negotiation.
Advice on incoming unitholder rights and protections.
Completion and trust record update.

What goes wrong when unit trust acquisitions proceed without proper due diligence?

Buyers who acquire unit trust units without reviewing the trust deed regularly find themselves in a worse position than anticipated. Broad trustee discretions can leave a unitholder receiving less income than expected. A transfer that missed pre-emptive provisions may be invalid. Undisclosed liabilities can expose incoming unitholders to obligations they did not anticipate. These problems are difficult and expensive to resolve after completion.

Here is how we protect your investment from the moment the transfer completes.

We review the trust deed to understand the rights you will acquire, the obligations that apply, and the procedure required to complete the transfer. We conduct due diligence and identify issues that should affect the price or terms. We prepare the unit transfer agreement and advise on whether a unitholders agreement is needed. By the time the transfer completes, you know exactly what you have acquired and what your rights are as a unitholder.

Three steps to a protected unit trust acquisition.

Trust deed reviewed, due diligence done, transfer completed correctly.

Review and investigate.

We review the trust deed and any unitholders agreement to understand the rights and restrictions that apply, and we conduct due diligence on the trust's assets, obligations, and financial position.

Advise on price and structure.

We advise on any issues identified in due diligence that should affect the price or the terms, and we advise on stamp duty and any structuring steps required before the transfer proceeds.

Document and complete.

We prepare the unit transfer agreement, manage the transfer mechanics, and confirm that the trust records reflect your new unitholder position.

Commercial lawyers experienced in unit trust acquisitions across a wide range of trust structures and asset types.

We have acted for investors acquiring interests in unit trusts across property, business, and investment structures. Unit trust deeds vary significantly, and a deed that looks straightforward can contain provisions that materially affect what you are buying. We make sure you understand what you are acquiring before you commit to the price.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Ready to acquire your unit trust interest with proper protection in place?

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