The items below set out basic aspects of the general subdivision process.
Why
By subdividing you may obtain at least 1 more title to the subdivided block, which you may retain, build on or sell.
You may consider subdividing your land depending on whether your current lot is sufficiently large and whether or not subdivision is feasible in other respects including being permitted in the area and the costs involved.
How
Firstly you should check the zoning controls in your area by examining the district plan and consult a surveyor to plan an application to Council for resource consent and also to assess whether a subdivision is perhaps economically worthwhile.
If Council grants consent, this is usually subject to some conditions or constraints such as the new lot being accessible via a registered right of way.
In order to comply with the conditions of the resource consent your surveyor will then physically inspect the land to produce a survey data set. Once work required by the conditions of the resource consent is done you will have to apply for what is commonly called section 223 and 224 certificates. These are issued by Council and essentially confirm that Council is satisfied that the survey plan is acceptable and that the consent conditions are met.
Once Council issues the certificates the survey plan can be deposited with the Registrar General of Land. Your lawyer will arrange this using the online platform known as LandOnline which is administered by Land Information New Zealand.
Caution
The time to complete subdivisions are frequently delayed as a result of amongst other things, the requirement to complete any works imposed by the conditions of the Council’s consent, preparing legal documents, obtaining the consent of any neighbours that are affected by the subdivision and the costs associated with each step.
In addition you should be aware that if you commence subdividing within 10 years of acquiring the land you will likely become liable for income tax on any profits unless the work is very minor, or the subdivision is to build a private home for yourself or your family or for carrying on a business from that property. Again, it is prudent to obtain professional advice on all aspects, including tax implications, when first assessing the desirability of the subdivision.
This article has been written by Aman Prasad, Associate at Patel Nand Legal.
Feel free to contact him for your next home purchase on 09 522 2757 aman@patelnand.co.nz
