Types of Property Subdivision
1 Town Planning Permits (TPP) & Sell
This type of structure allows the owner to sell off the back part of the block. The owner can provide certainty to the purchaser by having already obtained a Town Planning Permit. This can be done on a low budget and is a good way to sell your backyard. The Town Planning Permit allows the purchaser to start their project immediately after gaining a Subdivision Approval (SA) without any uncertainty or objection from council or neighbours.
The vendor and purchaser can then enter into a Contract of Sale subject to the granting of a Subdivision Permit and Connections. These costs are shared between both parties. This is one way of selling part of your property, although it is not the most profitable. Before the purchaser can build the new dwelling, they will need to apply for a Subdivision Permit and Connections. In most cases, the land is sold under market price, as the purchaser will have to pay for the Connections and Services. There is also quite a bit of work needed from a solicitor to prepare the section 173 agreement and a licence agreement prior to the sale. For these reasons most sales are limited and negotiations on the subdivision costs and allocation become too much for both parties.
“NOT
recommended
for blocks
smaller than
500 m²”
What’s involved?
1. A site analysis for levels and neighbours’
buildings as well as a proposed subdivision
plan for the new lot
2. New dwelling is designed
3. Town Planning Permit application
to council
4. On or prior to approval, property can be
sold with existing dwelling where applicable
or as a part under Section 173 (see FAQs
for details) and a licence agreement along
with contract of sale
5. The new purchaser will obtain the necessary
Subdivision Approvals and finish the subdivision
with the vendor splitting any further expense
2 Subdivision, Approval (SA) & Sell
In this structure, a Subdivision Permit is granted without a Town Planning Permit. If the block is smaller than 500m2 a building envelope is designed for the proposed dwelling. This type of structure is not recommended for blocks smaller the 500 m² as it still leaves the purchaser open for council and local objections. When applying for Town Planning Permits most councils will also require a TPP prior to a SA with lots smaller than 500m2. Profits are minimal as there are still some uncertainty as to what design permits can be obtained. Coupled with Service and Connections still to be completed and solicitor fees for the section 173 agreement, the expenses and uncertainties soon add up, this is an intensive and involved process.
This type of proposal is best suited for corner blocks or blocks over 1000m2. It is also highly recommend that the Services and Connections along with new Title be completed, although this is not necessary for the sale.
“This can be done
on a low budget
and is a good
way to sell your
backyard.”
What’s involved?
1. Subdivision Application
2. Re-establishment survey. Included
3. Subdivision permit application
to council
4. On approval, property can then be
sold with existing dwelling where
applicable or as part under section 173
5. The purchaser will finish the
subdivision with the vendor and
divide the expenses
3 Subdivision Approval Connection of Services (SAC) & Sell
In this structure a Subdivision Permit is granted without a Town Planning Permit. If the block is smaller than 500m2, a building envelope is designed for the new dwelling. The difference with this as opposed to (SA) is only that the infrastructure for the granting of a Title are completed, this involves Connection of Services and storm water along with titles office certificate for the new lot. This type of structure is not recommended for blocks smaller the 500m2 for the same reasons mentioned previously. The purchaser still needs to obtain a Town Planning Permit and to consult with council and neighbours. Again, the profits are not maximised because there still remains uncertainty with size and design until the TTP is obtained.
This structure will ensure the Title for the new land is issued making it an easier sell in the market. There is no need for the services of a solicitor and potentially there will be more buyers interested in this type of arrangement.
NOTE: Not all councils allow for this type of subdivision on battleaxe land and would in most case require a 173 agreement or the completion of the new dwelling (corner blocks are an exception to this rule). This type of proposal is best suited for corner blocks or blocks over 1000m2
“Transfer
Certificate
of Title”
What’s involved
1. Subdivision permit approval by council
2. Re-establishment and establishment
surveys
3. Connection of Services application
Electricity – underground power pit
(completed by relevant authority)
Water – connection, Sewer (completed by relevant authority)
Gas – connection and pipes by a
registered plumber
4. Fences – can be done after or at the
same time
5. Driveways – need to be completed
6. Garage or carport – depending on the site sometimes may not need to be completed
7. Certificate of compliance issued which
allows you to lodge approval at Titles Office
On completion, property can be sold with own Title to a potential builder, developer or home-owner
Note: Subdivision Approval might include building of garage or carport for existing dwelling, crossovers and driveways.
4 Town Planning Permits, Subdivide & Connections - Sell (TPP & SAC)
This is, by far, the best way to maximise your profits without going through the intense building process. Town Planning Permit and Subdivision Permit approvals are obtained which allow for all of the Services and Connections to be completed. These include power, water, gas, driveways and cross over. In some cases you may be required to construct a garage or carport for the existing dwelling as well as a letterbox. Once completed and approved, the Titles Office will issue a Title for your new lot with TPP in place. You can then sell the property at its maximum potential and gain maximum profit. All the hard work has been completed and potential purchasers will have certainty provided by having all relevant permits in place along with the Title for the new lot.
“Certainty
provided by
having all the
relevant
permits in
place.”
What’s involved?
1. Plans and permits
2. Site analysis for levels and neighbouring
buildings
3. Town Planning Permit granted by council
4. Subdivision Permit granted by council
5. Re-establishment and establishment
suveys completed
6. Subdivision Permit application to council
7. Connection of Services completed
Electricity – underground power pit
(completed by relevant authority)
Water – connection, Sewer (completed by
relevant authority)
Gas – connection and pipes by a registered
plumber
8. Fences can be done after or at the same
time
9. Driveways need to be completed
10. Garage or carport – depending on
the project
11. Certificate of Compliance issued which allows
you to lodge approval at Titles Office for
the new title
On completion, property can be sold with
own Title to a potential builder, developer
or home-owner.
Note: Subdivision approval may include
building of garage for the existing dwelling.
5 Town Planning Permits and Subdivide, Build (TPP, SAC & Build)
Well this is it! A complete project and the best way to maximise your profits. A registered builder is engaged and quotes for full construction will be obtained. The Town Planning Permit and Subdivision Approval will allow for all of the Services and Connections to be completed. These include power, water, gas, driveways and cross over which will be completed at the end when you see the new dwelling constructed. Upon completion, a Certificate of Occupation will be issued and the Titles Office will issue a Title for the new dwelling and lot. You can choose to sell the dwelling or rent it out and reap the rewards.
Certificate of compliance and occupancy issued which allows you to lodge approval at Titles Office for the new Title and dwelling habitation , property can be sold with own Title to a potential builder,
developer or home-owner.
What’s involved?
1. Plans and permits
2. Site analysis for levels and neighbours
buildings
3. Architect design footprints, then put their
designs to measurements
4. Town Planning Permit application to council
5. Subdivision application
6. Re-establishment survey. Included
7. Apply to council and obtain a Permit for
Subdivision
8. Connection of Services application
Electricity – Underground power pit
(completed by relevant authority)
Water – Connection, sewer (completed by
relevant authority)
Gas – Connection and pipes by a registered
plumber
9. Fences can be done after or at the same time
10. Driveways need to be completed
11. Working drawings
12. Engineers drawings
13. Soil test
14. Energy ratings
15. We obtain two quotes from registered builders
16. Engagement of builder
17. Advisory role to the client and builder
during construction
18. Property can be sold off-the-plan or kept
for rental purposes
19. Construction of dwelling
20. Landscaping completed
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