With our increasing population and desire to live in certain areas, land divisions are an increasingly popular method of creating wealth. Whether subdividing a block you already own or buying a block to divide, it’s wise to understand the process.
As always, we advise that your first step is to contact your Conveyancer. However, in instances of land divisions, it’s also critical to speak to a Surveyor very early on. You’ll want to contact the council too, to check their block size regulations. If buying a block to divide, it’s important to speak with your Surveyor, council, and Conveyancer, as early as possible.
The roles of those involved with Land Divisions
Your Surveyor will inform you about potential actions for the block. They’ll also assist you in estimating the associated costs. The number of blocks you intend to create and the types of Titles you desire (Torrens, Strata, Community Title – Refer to our previous blog for Title information) will affect the costs.
Your Surveyor will then guide you through the steps and assist you with getting approval from all required government bodies.
The next steps involve drafting the plans, obtaining necessary approvals, and paying government fees. Then your Surveyor will send through copies of the plans to your Conveyancer.
As your Conveyancer, it’s our job to liaise with you and obtain consent from any banks that may have a mortgage registered on the Title, developers who have an Encumbrance on the Title and any other parties that may have an interest in the property. Once all interested parties are satisfied, we submit the final documentation to the Lands Titles Office to create the new Titles.
The process can be lengthy, particularly if there’s a dwelling on the block that needs removal. A timeframe of 6 to 12 months is generally accepted, but for larger land divisions with 50 or more blocks, it can take longer. The duration also depends on the negotiation of necessary consents. If you’re building and selling a dwelling with the land, it could extend the timeline by another 12 to 24 months.
Land divisions certainly aren’t a get rich quick scheme…
But they do enjoy a reputation as being a solid investment if you have the time, patience, and investable money.
Hopefully this has explained why you need to involve your Conveyancer early with a land division. We also have some excellent contacts with Surveyors if you would like any additional information or quotes.
There’s also some good info at this state government site, or feel free to contact us here.