Subdivision has always been a popular method of releasing the financial equity in a property. It allows property owners to add another dwelling or even rebuild a number of townhouses on one block of land. In this article, we will explain what is the process involved to obtain Plan of Subdivision for the newly created dwellings, the final step of your subdivision project.
Before we get to the final stage of the process, it is important to ensure it is feasible to subdivide your property and choosing the right property for subdivision is not an easy task. Some simple tools can help you to conduct initial due diligence for a property, such as checking the zoning and planning overlay controls.
Our team has informative articles on how to confirm if a property can be subdivided and you can read about them here.
Subdivision has always been a popular method of releasing the financial equity in a property. It allows property owners to add another dwelling or even rebuild a number of townhouses on one block of land. In this article, we will explain what is the process involved to obtain Plan of Subdivision for the newly created dwellings, the final step of your subdivision project.
Before we get to the final stage of the process, it is important to ensure it is feasible to subdivide your property and choosing the right property for subdivision is not an easy task. Some simple tools can help you to conduct initial due diligence for a property, such as checking the zoning and planning overlay controls.
Our team has informative articles on how to confirm if a property can be subdivided and you can read about them here.
In our previous articles, we also explained subdivision involves designing a development layout for your property that meets your local council’s town planning policy framework, and also complies with the regulations governing Victorian subdivision, commonly known as ResCode.
The local regulations vary from Council to council meaning that a subdivision proposal in the Monash or Boroondara Council area may not receive support in neighbouring Whitehorse Council or nearby Banyule Council or Glen Eira Council. It is important to engage a professional with local experience before commencing to avoid common pitfalls.
To read more about the processes of getting a planning approval from your local council, click here.
Now that you have a building design that you like and been checked by an expert town planner to ensure it all complies with the regulations of your local council, you are ready to lodge an application to your local council for planning permit for development and subdivision consent.
Once we have obtained a planning permit for development, subdivision consent and a building permit from your local council, the builder of your choice can start construction of the townhouses in line with the approved development application and subdivision consent. At this stage, a registered land surveyor can also be engaged to complete the Property Subdivision Survey of the new dwellings to get a subdivision certificate in Victoria.
The process of obtaining Plan of Subdivision for the newly created dwellings:
The registered land surveyor of your choice will undertake fieldworks for a surround boundary survey of the subject land as well as obtaining a survey datum in the street. This will confirm the accurate location of current boundaries, existing easements and any improvements or infrastructure.
- A Plan of Subdivision is drafted.
- A draft subdivision plan clearly showing the current title arrangements with the proposed additional lots to be created. Property boundary dimensions and angles are delineated in plan and elevation view for each separate proposed titles.
- The draft plan will then be sent to the client for approval.
4. A subdivision application is then submitted to the local council by the land surveyor using SPEAR (Surveying and Planning through Electronic Applications and Referrals) for;
- A Planning Permit for Subdivision.
- A Certification of the Plan of Subdivision.
The SPEAR system will refer the plans to all of the relevant service authorities such as Water, Sewer, Gas, Electricity and Drainage for assessments. At this stage, council may request further information but the below outlines the next steps to finishing the subdivision.
- Council will generally take 3 months to process the application and will then issue a Planning Permit for subdivision. This Planning Permit will contain conditions that will need to be met in order to complete the subdivision. The most common condition will be that each newly created lot must be independently serviced. As the owner who benefits from the value of a newly created block of land, it is important that you be aware that you must pay to connect the newly created blocks to sewer, electricity and water infrastructure. This connection process and the cost cannot be passed to a purchaser of a new block and the connection process must be completed before the new title for the block can be released.
- The surveyor then completes the final documentation for registration of the plan at Land Use Victoria (Titles Office)
- The plan will then be released to the client’s solicitor for the final step, being the registration of the plan & the process is now completed
Now that the dwellings are built and Plan of Subdivision are obtained for each of the newly created lots, the properties can now be sold to a new owner or held by the current owner for investment purposes.
There are various elements to be considered when subdividing land or buildings. These include:
- Real estate prices in your local area to determine whether the project will be profitable;
- Knowing the associated application costs of the Council and the infrastructure connection when completing a subdivision;
- An effective development layout so that the maximum value of the land is achieved;
- Being aware of any existing site features, such as trees and easements, which may restrict the subdivision potential of the land
Our team has the vision, creativity and demonstrated industry experience to exceed your expectations and deliver a fantastic return on your investment.
Take the stress out of your subdivision project by letting our experts complete the project efficiently and successfully.