Land Divisions
A fabulous idea! Splitting your property from one block into multiple blocks is a great way to begin your portfolio. Discover the different types of Title Deeds available and their requirements
A conveyancer gets involved towards the end of the land division process to formally create the new Title Deeds. With creating a new parcel of land there may be portions of the land that require banks to discharge loans and other portions that may require extensions of mortgages. We will deal with your lender in arranging all of this and like a traditional conveyancing transaction will also obtain client authorisation forms to create and sign off on the registrable forms for the Titles Office. Currently these transactions are done the old school way until the Property Exchange Network is able to process such documents.
Generally the first point of call when considering a land division is a surveyor. They will draw up plans and seek the approvals from the government authorities. They will also discuss with you what type of land division is permissible on your property.
Depending on your property size and what type of construction is occuring if you are proceeding to build will dictate the type of Title and therefore land division you pursue. Currently there are 3 different types of Titles available which we will go into for you.
- TORRENS TITLE
- COMMUNITY TITLE
- COMMUNITY STRATA TITLE
Torrens Title
Torrens Title is where land is divided into two or more lots which share no facilities or infrastructure. There is a single certificate of title for the allotment of each block created.
This is the most common form of subdivision though is the more expensive option as additional meters and sewerage connections will be required. The government will also apply charges for open space when dividing the land by this method. However the land will usually have a higher value as there are less restraints on what can be done with the property as all the decisions are your own. Easements and encumbrances may be applicable depending on what the Council requirements for the subdivision.
Community Title
A community title divides land into lots and common property.
The land is divided into two or more lots which have shared infrastructure and facilities such as sewerage and water supply (usually on the common property). There could also be a shared driveway which will need to be managed and maintained by a Community Corporation.
By-Laws will also need to be created as these state the rules and regulations the owners will be governed by. Such considerations for example are whether pets are permitted. The By-laws also include a provision for administering, managing and regulating the use and enjoyment of the common property and community lots.
Should there be more than 6 lots created then a Scheme Description will also be required and again this will provide information as to how the land is to be or has been developed. If the land is to be developed later then a Development Contract may be required.
A Lot Entitlement sheet which details the share that each Lot has in the Community Division is also required by a Valuar.
Community Strata Title
The other form of Community Title is a Community Strata Scheme which will apply for developments such as multistory complexes and apartments. The boundaries for each lot in a Community Strata Scheme are defined by the buildings on the Community parcel. This setup is similar to the old Strata Title however the buildings themselves are considered to be common property and are therefore the responsibility of the Community Corporation to maintain and insure.