If you want to secure your finances and protect your family’s future you might have thought about investing in properties and why not? Property investment is a great way to diversify your portfolio and if it’s done properly it can become the cornerstone of your financial success. You don’t need to be an expert investor to get into the property market. With the right advice Mums and Dads can grow their wealth on the property market too.
One popular property investment strategy is land subdivision. This involves dividing property into smaller lots, allowing each of them to be sold separately. This can be a great strategy in the right circumstances, but how exactly does it work and what are the legal elements behind it? To help you understand land subdivision, here are the essential steps involved in the process.
- Preparing the Plan
Before you can get started, your surveyor will prepare the proposed plan of subdivision and submit this to your council for certification.
- Council Certification
When your proposal complies with Council’s planning scheme and the permit and any relevant alterations have been made, your plan will be certified by the Council.
- Supplying the Street Addresses for the Lots
With your land divided into smaller parcels, a new street address for each lot is required and your surveyor will supply this.
- Surveyors Report
A Surveyors Report and an Abstract of Field Records will be provided if a survey of your land has been performed.
- Owners Corporation
An Owners Corporation manages any common property and services that are shared by the lots in the subdivision. This could be a common driveway or garden, but can include other common facilities especially for apartments. If an Owners Corporation is required for your subdivision, additional information – including Lot Entitlement and Liability – will be prepared by the surveyor.
- Statement of Compliance
This is a statement issued by your Council when all of the required public works on the land have been completed or an agreement has been reached that will ensure these works are completed.
- Mortgaged Land
If the land that you’re wanting to subdivide is mortgaged, your conveyancer will have to seek consent for the subdivision from the mortgagee and request that the parent title – the title of the original unsubdivided land – is made available by the mortgagee at the Titles Office.
- Lodging Land Victoria Documents
Your conveyancer will prepare and lodge the relevant Land Victoria documents, enabling the plan of subdivision to be registered.
- The Final Step
Land Victoria now registers the plan, cancels the title for the parent land and issues new titles for the individual lots and any common property, and creates the Owners Corporation(s) if applicable. Congratulations, you have successfully subdivided your land!
There you have it, the steps you to need to take to create your subdivision. As you can see, you’re also going to need help from a surveyor.
One of the key elements in land subdivision is the legal work. The conveyancing team at Glenferrie Conveyancing can take care of all the legal work needed to create your subdivision. We will ensure that all the correct steps are performed. Contact our expert team today for a flexible and responsive service that does the hard work for you.