Subdividing a property can be an excellent investment strategy, no matter what the scale of your planned development is. Whether you're planning to build two homes and sell one or you're planning a large-scale development, it's essential that you get expert legal advice.
To get the most out of your investment, you'll want everything to go as smoothly as possible. Your lawyer will guide you through the process and help you understand everything from your legal obligations to how to secure road access.
Here is our advice on property subdivision in Victoria and how a lawyer can help you.
What you need to consider
Subdividing your property can be very complex, there are a large number of variables that you need to consider before you begin the process. Understanding these details will give you a much better idea of how you should proceed with your subdivision.
Some of the questions that you will need to answer include:
- Are there any state or local planning policy implications that could impact on your proposal for subdivision?
- Can the proposed new lots be appropriately serviced by utilities and other infrastructure?
- Can the land sustain the increased intensity of use or development following the subdivision?
- How does the subdivision relate to and affect existing building?
It is essential that you know the answers to these questions before you begin the subdivision process. That way you can be sure that the development you're planning will be appropriate for the land.
Understanding the applications and permits
Property subdivision laws are quite complex as there are a number of applications, permits, and documents involved.
Subdividing a property requires an application to Land Victoria under Section 22 of the Subdivision Act 1988. You will also need to obtain a planning permit from the local council for any proposed developments that you wish to undertake during and after the subdivision.
It is also likely that any restrictions or ongoing requirements by the council for the use and development of the land will be included in a Section 173 Agreement. This will ensure compliance with the conditions attached to the planning permit and will be binding on you and all subsequent owners of the property.
Common mistakes to avoid
If you are a first-time developer or are unfamiliar with the subdivision process, then you need to make sure you avoid some of the mistakes that people often make.
Some common mistakes that you should avoid include:
- Losing track of deadlines imposed by the council and letting permits lapse.
- Confusing the subdivision process with the building and construction of the property.
- Underestimating the scale of the job and trying to be the project manager for the entire development.
These mistakes can all be avoided with careful planning and expert legal advice from a subdivision lawyer.
How a subdivision lawyer can help
The applications and documents required for subdivision and planning permission can be very complex and confusing, especially if you are not familiar with the process. A lawyer can prepare and submit the subdivision application on your behalf and liaise with your surveyor to obtain the appropriate surveys.
Your lawyer will also be able to assist in obtaining the bank’s consent to the subdivision if there is an existing mortgage, and they can request that the bank make the original title available at the Land Titles Office to facilitate the subdivision application. Your lawyers can also help you in the negotiation process with the council and local authorities.
Get expert property law advice from Rose Lawyers.
At Rose Lawyers, we have been helping our clients with property law matters for over 35 years. We will guide through every step of the subdivision process to ensure that your development goes smoothly.
For expert property law and subdivision advice, call Rose Lawyers on 03 9878 5222.