I bought a property a few years ago through my self managed super fund, however at the time I was just short of the funds required to purchase so made up the difference and ended up with a small percentage ownership in the property. The superfund now has enough funds to buy my share out but I was told that I would have to sell the property to get my funds back which I don’t want to do. Why can’t I just sell the percentage of the property to the superfund so I can get back the money I put in?

because a SMSF cannot acquire residential real property from a member: it is one of the things that the ATO has put in place to prevent people setting up SMSF in order to purchase the family home.
It is a massive inconvenience for someone like you, and I get the frustration. Unfortunately the super fund can acquire residential property from ANYONE except you, and you can sell your property yo ANYONE but the super fund. Puts you in a bit of a pickle Carol.
I presume that your accountant would have explained this to you when you set the thing up in the first place, however you may have not picked up on this little issue with all the other things going on when you buy property.
sorry I cannot be of more assistance Carol. Have a chat with your accountant, maybe he/she will be able to help.

regards
Brendan

Hi Carol
As a general rule a self managed super fund can't acquire an asset from a related party unless it's at market value AND is a listed security, a business property or if it does not exceed 5% of the total market value of your fund's assets.

Hi Carol,
Check with your accountant as to how he treated the money you put into the purchase.
If it was treated as a "super contribution" then you effectively put that money into your superfund and it is not able to be returned to you.
However, if is was treated as a "loan" to your super fund, then ask him if the fund can now repay that loan to you.

Hi Carol,
As mentioned by the others here, the top up in this situation was made by a voluntary contribution to your super fund so you aren't actually a part owner at all.
Best you speak with an experienced SMSF specialist accountant and see what options you might have to withdraw from your super.
Regards
Scott

The SIS Act 1993 is very clear about funds used to acquire property must come from your SMSF. Every single dollar.
May I suggest you contact Liam Shorte at Verante for guidance on “where to from here”. Liam is a subject matter expert.