Subdivision

Subdivision involves dividing land or an existing building into two or more lots, each with its own title, allowing them to be sold, transferred and managed separately. Subdivisions are now lodged online via the electronic system SPEAR[1], which Cimino & Cimino is a member of. The subdivision process is relatively straightforward, with your Land Surveyor handling most of the groundwork.

Additionally, there may be a further requirement where land needs to be partitioned into separate titles. We will discuss the need for this in our initial appointment.

The subdivision process can be briefly outlined as follows:

  1. Engage a Licensed Land Surveyor: Your Land Surveyor will prepare a proposed Plan of Subdivision to submit to the Council along with your Planning Permit Application. They will also help determine the boundary of your title and create new title boundaries. We can refer you to a qualified and trusted Land Surveyor.
  2. Apply for a Planning Permit: Your Land Surveyor will assist with submitting the Planning Permit Application to the Council. Once a file has been created on SPEAR, we or your land surveyor can monitor and track the progress of your subdivision and provide prompt updates throughout the process.
  3. Apply for Certification: Your Land Surveyor will confirm that the conditions of the Planning Permit have been satisfied, along with the requirements of servicing authorities (e.g., Water Authority, telecommunication, and electricity/gas providers).
  4. Obtain a Statement of Compliance: The Council will issue a Statement of Compliance once all conditions have been met, and the final Plan can be signed off by the Land Surveyor.
  5. Lodge the Plan with Land Victoria: We will lodge the Plan of Subdivision with Land Victoria. Once registered, Land Victoria will issue new titles.

These steps may vary, for example, if there is a mortgage on the property.

Cimino & Cimino can assist you primarily with step 5 where new titles are issued by Land Victoria. We can also help you set up an Owners Corporation and Public Liability Insurance for common property.

What do I need to consider before  subdividing;

Zoning: Does the zoning of the property allow subdivision? Usually a permit is required but  there may be additional overlays that need to be adhered to.

  • Title:
    Does the physical land accord with the land as stipulated on title? Are there any covenants or section 173 agreements preventing a subdivision? Are there any registered or unregistered easements?
  • Physical Features:
    Is the land contaminated or filled? Does the Land have hard rock near the surface? Are there flooding or drainage issues?
  • Financials:
    Will the Property be marketable at the appropriate price? Will the project be profitable after all costs and tax are taken into consideration? ; Or, the project may not be for financial profit where an analysis of this goal is to be considered.
  • Tax:
    Tax implications in the following areas need to be taken into consideration;
    • Income Tax
    • Capital Gains Tax
    • Stamp Duty
    • Land Tax
    • CIPT
    • GST
    • GAIC

When can I sell the subdivided lots?

Once the land surveyor has drawn up the subdivision plans, the property can be marketed and sold. This is known as an “off the plan sale”. Ask us about preparing these contracts where special clauses need to be included and sunset dates are to be determined.

When Can I build?

In addition to subdividing, if you are also building, as a separate process to obtaining the planning permit, a building permit must be obtained. The building must comply with all the conditions outlined in the planning permit. Building can only commence after a building permit is obtained which itself relies on the planning permit.

Stamp duty and Land Tax implications

This can be a complex topic. Please make an appointment with us to discuss various stamp duty implications. The timing of the registration of the Plan of subdivision with Land Victoria is also to be planned here.

I have a mortgage over the property, do I need to involve them?

In Short, most definitely, their consent is required. We will write to your bank and seek consent on your behalf

Contact us to discuss the initial steps

Please contact us to arrange an appointment if you need any assistance with subdivisions.

[1] Surveying and Planning through Electronic Applications and Referrals