What is a subdivision, and why is it necessary?
A subdivision is when one piece of land is broken up into separate titled lots. It is necessary because the smaller pockets of land cannot be sold legally without the subdivision process. The checks in place throughout the subdivision process ensure that there is the infrastructure to support additional housing in the area and occurs in liaison with the local council.
Why subdivide your land?
There are a few reasons why people like to subdivide their land. One is that it can be a more profitable process than the typical investment in a rental property. When subdividing, you stand to see a return on your investment sooner, sometimes even before all the building is done, if new apartments or townhouses are bought off the plan. Another reason is that some people want to downsize their homes, but they like their neighbourhood and don’t want to move permanently. A solution is a subdivision where they live in one property while renting or selling off the others.
What are the steps in the subdivision process?
Check if the land can be subdivided
The first step in the subdivision process is determining if the property can be subdivided. This involves hiring a lawyer to review your certificate of title to find out if there are any restrictions on the subdivision of the land. You can also contact your local town planner for their opinion.
Engage a surveyor
You will need a surveyor on your side in this step. A surveyor will help you through the subdivision process by drafting plans and applying for permits. A town planner may be able to introduce you to a suitable surveyor to use.
Obtain permits
You may need approvals and permits from the local council and other authorities before the building project can proceed. VicRoads, the water authority, gas, electricity, and phone suppliers may have a say over the viability of your subdivision. After you have accepted any of their conditions, you will be given a certificate of compliance - a green light for creating the new titles.
Register the new titles
After you have adhered to all the necessary approvals and subdivision act legislation, you will need a property lawyer to register the subdivision plan with the title office. Your lawyer will create the right paperwork to delineate titles and owners' corporations, where needed. They may also need your bank’s permission to register the subdivisions if your title has a mortgage.
The subdivision act
Property subdivision is a complex area, so it’s best to hire an experienced property lawyer to help you. The Subdivision Act 1988 outlines the laws regarding property subdivision in Victoria. If you are a property developer, it would be worthwhile to sit down and read this legislation and discuss it with your lawyer to ensure you understand your rights and responsibilities.
Let P&B Law help you with your subdivision
At P&B Law, we have highly experienced property lawyers here to help you with all the paperwork associated with your property subdivision. We’ll lead you through the steps so that you avoid common subdivision mistakes and get a profitable result.
Contact us today to learn more about property law.