Question 1

Can the lease term be extended?

Accepted Answer

The lessor and the lessee can extend the lease prior to and at the end of the term. How many times and for what terms are to be included in the document.

Question 2

Is lease/rent payments fixed or variable?

Accepted Answer

Lease payments are fixed for a period of the lease but may be changed by agreement between the parties

Question 3

What happens at the end of the lease?

Accepted Answer

The Lessor may agree with the Lessee to extend the lease or commercially auction the leased asset to a third party on which the lessee may bid.

Question 4

How long does this document take to assemble?

Accepted Answer

Depending on the complexity of the data, this document should take approximately 5-10 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Question 5

Can I use this Lease for a lease of a motor vehicle from a SMSF to a related discretionary trust?

Accepted Answer

A written lease is required where a SMSF leases any property to a third or a related party. Care must be had to the in-house assets and it is wise to seek advice from LY Legal prior to engaging in any related party transaction with a SMSF.

Question 6

Can an Associate be the Lessor?

Accepted Answer

Yes the LYD Equipment and Motor Vehicle Lease Agreement allows a related party such as a spouse to be the lessor and lease the equipment to a spouse for asset protection and tax purposes.

Question 7

What is the difference between this lease and a commercial hire purchase?

Accepted Answer

With a CHP the owner of the asset is the lessee and the agreement is in the nature of a loan. With the LYD Equipment and Motor Vehicle Lease Agreement the lessor retains ownership and can access and tax depreciation in that regard.

Question 8

Is this a legal document?

Accepted Answer

All master documents have been signed off by LY Legal. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 9

Is the document easy to read?

Accepted Answer

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

Question 10

What lawyers sign off on LYD documents?

Accepted Answer

All LYD documents are prepared and signed off by LY Legal.

Question 11

Are the LYD documents reviewed regularly?

Accepted Answer

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Question 12

Can I get a sample of this document?

Accepted Answer

Yes, please email support@lyd.com.au to request a sample document for you to review.