Subdividing land is the process of breaking down a parcel of land into at least two smaller parcels. The cost varies depending on the location, size and complexity of your project and the professionals and consultants assisting in that process.

Why subdivide land?

The most common reasons for subdividing land include:

1. It may allow the landowner to sell part of his/her property (as separate titles would be issued for each parcel of land);
2. It may be more profitable for the landowner;
3. It may provide greater flexibility on investment or increase return on investment.

What are types of subdivisions?

1. Two lot subdivision: May have common services or common property or may be two complete separate parcels of land;
2. Multiple lot subdivision: May be townhouses, apartments or mixed-use developments (residential and retail/ commercial); they may have common services or common property or may be separate parcels of land;
3. Broadacre subdivision: Broadacre is land greater than 4,000 sq. m. that is subdivided (possibly to create a small estate or suburb).

Can my property be subdivided?

If you are considering subdividing your property you should consider the following:

Neighbourhood Precedent: Research recent approved subdivisions around the subject property. This should give you a better idea as to whether a similar outcome could be possible for your property (subject to planning requirements).

Land Size: Depending on planning requirements and the council, your land size will more than likely be a factor on whether you can subdivide.

Restrictive Covenant: Check if there is a restrictive covenant registered on your title (e.g. a single dwelling covenant may prevent subdivision and another dwelling on the land).

Planning Requirements: Planning and zoning controls affecting your property will indicate whether you are able to subdivide and develop your property.

Who is involved in a subdivision?

Professionals and consultants who may be engaged to assist with a subdivision project include:

1. Architect;
2. Town Planner;
3. Building Surveyor;
4. Project Manager;
5. Lawyer;
6. Accountant;
7. Land Surveyor;
8. Owners Corporation Manager.

What is the process of subdividing?

The following would ordinarily be part of the process you would follow:

1. Planning due diligence: Find out whether your property can be subdivided. You may engage a town planner, lawyer or architect to assist in this process.
2. Engage consultants to assist with your subdivision project.
3. Planning approval: obtain a planning permit and create the proposed plan of subdivision. Most likely you will have to engage a town planner and a land surveyor for this part of the process.
4. Council approval: have Council certify the proposed plan of subdivision and issue a statement of compliance indicating that the planning permit conditions have been satisfied. Your land surveyor should assist in this regard.
5. Creating Titles: lodge a subdivision application for the proposed plan of subdivision to have it registered at NSW Land Registry Services who will issue a new title for each lot on the proposed plan of subdivision. Once your land surveyor has released the certified plan of subdivision, you will require a lawyer to assist in this part of the process.

If you intend to develop the land, you will also require council to endorse architectural plans, specifications and elevations.

Here to Help

Ways in which we can guide and support you through the subdivision process include:

1. Property and planning due diligence – determine whether you are able to subdivide and develop the land;
2. Acquisition – structure advice, negotiate for your purchase, assist in reviewing and advising on the contract of sale, highlight any planning restrictions, restrictive covenants and other potential obstructions to your proposed subdivision. Draft special conditions in line with your development objectives.
3. Subdivision – Work with your consultants to register your plan of subdivision.
4. Sales–prepare off-the-plan (or post registration) contract of sale, certify pre-sales for your construction lender and conveyancing for each of the lots sold.
5. Construction– review and advise on building and construction contracts and the like.
6. Development and joint venture agreements.
7. Dispute resolution.

Contact us if you have any questions or if you need help you with your subdivision.