"I AM DOING A SUBDIVISION"
Our firm has 35 years’ experience in dealing with subdivisions, mainly with larger subdivisions of 7 or more lots and with financing larger subdivision developments.
We can advise you whether you have a large subdivision with several owners corporations or just a dual occupancy.
Deed of partition
If you are undertaking the subdivision with an owner, a co-owner or a builder-developer or in a joint venture, you will usually require a partition agreement. We can prepare and draft a partition agreement for you.
Most subdivision applications involve two stages: an application to the responsible authority (usually the municipal or shire council) for a planning permit to subdivide under the Planning and Environment Act 1987 and an application for certification under the Subdivision Act 1988. We can provide you with advise as you and your surveyor progress through the following steps:
- planning permit for subdivision;
- certification; and
- statement of compliance.
Someone may lodge an objection to your plan. We can appear for you before the Tribunal in the planning appeal when someone lodges an objection to your plan with the council.
Agreement under section 173 of the Planning and Environment Act 1987
A Section 173 Agreement is a planning agreement. The council often requires a Section 173 Agreement under the Planning and Environment Act 1987 to be registered on the title to ensure that any development on the property takes place only in accordance with the planning permit. The Section 173 Agreement is prepared by the council’s lawyers. We can advise you on the impact of Agreement. The Agreement also requires the consent of your lender, the mortgagee, which we organise.
Consent of mortgagee
If there is a mortgage registered on your titles, you will require the consent of your lender to the Plan of Subdivision and to production of your titles to Land Victoria. We prepare and arrange for you to sign a consent and production of title authority authorising your lender to execute the application to register, produce your certificate of title to Land Victoria at the appropriate time and to give Land Victoria instructions for delivery of the new titles (usually back to your lender). We will also arrange with your lender to have your existing certificate of title produced to Land Victoria.
Application for Registration of the Plan of Subdivision
We can prepare the section 22 application and prepare a SPEAR Plan of Subdivision (based on the documents from the surveyor) for the issue of new titles by Land Victoria.
If there is to be an owners corporation, we can prepare the owners corporation documents which will enable creation of the owners corporation on registration of the Plan of Subdivision. This may involve issues such as insurance, model rules, special rules, limitations on the owners corporation’s liability and the provision of any additional information which may be required by Land Victoria. It may also involve calling the inaugural general meeting of the owners corporations. We can prepare the notices, and convene, chair and minute the inaugural general meeting and set up the owners corporation records.
After lodgment and examination, the Plan of Subdivision is registered and the new certificates of title issue. If you have a mortgage, Land Victoria will send the new titles to your lender, in which event we need to do a title (check) search for you to confirm that they have been issued. If you do not have a mortgage, Land Victoria will send the new titles to us.
FUNDING THE PROJECT
Sale of each Apartment or Unit
You may be funding all or some of the project costs with borrowings. If so, it is useful to have Contracts of Sale in place to sell the lots. This will encourage the lender to lend you funds. We can prepare an off the plan Contract of Sale and Vendor Statement for each lot in order to enable you to sell them before registration.
“Can I receive the deposits before settlement?”
The deposits cannot be released to you before registration of the Plan of Subdivision.
“When can I receive the purchase price?”
Settlement cannot occur until at least 14 days after registration of the Plan of Subdivision or the issue of a certificate of occupancy, whichever occurs last.
We are a PEXA subscriber. That means we are authorised to effect electronic settlements. If we undertake your sales as PEXA transactions, then you should receive your funds sooner rather than having to wait for at least 3 days for your funds to clear. There is an extra expense in doing so, but we absorb that expense.
OTHER WORK WE DO RELATED TO SUBDIVISIONS
Section 32 Plan
We can assist you if you require an alteration to an existing subdivision.
Section 32A Plan
We can assist you if you require the consolidation or re-subdivision of an existing owners corporation.
NICO (not in common ownership)
We can assist you if you require a NICO (not in common ownership) plan (usually where you are acquiring land from an adjoining owner).