There are several steps in subdividing a property. We don’t normally get involved until Step 5! But we are happy to refer you to a surveyor and/or planning consultant and/or accountant who can assist with the eariler steps if required.
STEP 1 – DUE DILIGENCE (WITH COUNCIL AND YOUR ACCOUNTANT)
Each zone has different requirements when it comes to subdivision such as a minimum lot size to subdivide.
There are also minimum garden area requirement applies to land in the Neighbourhood Residential Zone and General Residential Zone.
There might also be overlays or covenants which apply special controls that may impact the subdivision of the site.
The best way to get across these is to have a planner involved and/or meet with the Council who can provide you with information on your proposal and help avoid delays in the application process.
If there is a land transfer/change of ownership involved, you also need to consider stamp duty implications (which we can help with) and any GST or CGT implications (which you should speak to your accountant about).
STEP 2 – SURVEY
You need to engage a land surveyor to prepare a plan of subdivision to submit with your planning permit application.
Licensed land surveyors are the only people qualified in Victoria to determine the location of your title boundary and create new legal boundaries.
STEP 3 – APPLY TO COUNCIL FOR A PLANNING PERMIT
Your planner can then apply to Council for a planning permit to subdivide. Once you have applied, your application will be advertised to your neighbours
If your planning permit is approved, it will contain conditions that must be satisfied for the subdivision to proceed. This may include:
conditions from servicing authorities such as drainage or electricity requirements,
paying an open space contribution, or
entering a section 173 agreement where the landowner agrees to make sure the land is developed in accordance with a development planning permit.
STEP 4 – CERTIFICATION
Once a planning permit has been issued, the plan of subdivision must be certified by the Council. This is a separate application to the planning permit application.
As well as satisfying conditions on the planning permit, all the servicing authorities must consent to the plan being certified
When you apply for a Statement of Compliance, a Council officer will inspect the site to determine what public works need to be completed. These works may include drainage works, repairing a damaged footpath or replacing a street tree.
When the conditions on the planning permit are met (and all the servicing authorities consent), Council will issue a document called a ‘Statement of Compliance’.
STEP 5 – GET THE BANK TO MAKE THE TITLE AVAILABLE
Once Council have done their bit, we liaise with your bank to make the title available.
The bank might have some additional requirements (such as valuations of the new lots or any security property) before they consent to the subdivision.
If Council require a section 173 agreement on title (promising that you will comply with any development permit), your bank also needs to consent to this.
In short, start talking to your bank before you need them so this part doesn’t hold things up.
STEP 6 - LODGING
Whilst we are talking to the bank, we will also verify your identity and prepare the documents needed to lodge the certified plan with Land Victoria. This might include creating an owner’s corporation or applying for any follower transfer to be assessed by the State Revenue Office. Once that is done, we lodge the plan on SPEAR.
If the State Revenue Office need to get involved (because some land is changing ownership), allow 60 business days for their assessment. Land Victoria will then take 3+ weeks (depending on the size of the subdivision). Subdivision fees at Land Victoria vary depending on number of lots but start from $1000+.
How long does a subdivision take?
It will take several months to obtain your statement of compliance and title as described above. It will take longer if works are required, easements or section 173 agreements need to be created, your bank has additional requirements or, if land is being transferred
How much does it cost?
Even if you are just subdividing (and not building), it can cost tens of thousands to complete a backyard subdivision (in permits, plans, surveyors and application fees). This isn’t including the cost of any works that you need to do to get your statement of compliance, such as new drainage systems, new electricity connection, a new fence, connecting water and sewerage to the new block and installing any crossovers.
Building projects will obviously add to the complexity and cost, including the cost of drawing up building plans, engaging contractors, builders and site managers, and applying for building and development permits.
In short, the legal fees are a drop in the ocean compared to the other stuff, and it will take longer than you think!