Subdivisions and Strata

Subdivision divides land into individual lots, whereas strata divides buildings into separate units with shared common areas and responsibilities among owners

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Subdivision vs. Strata: Understanding the Difference

Subdivision: Subdivision refers to dividing a larger piece of land into smaller individual lots or parcels. Each newly created lot typically gets its own title or deed, allowing it to be owned and developed independently. This process is commonly used to create residential or commercial lots where each owner has exclusive rights to their piece of land. Subdivision allows for the construction of standalone houses, commercial buildings, or other developments on each individual lot.

Strata: Strata, also known as strata title, involves the division of a building into multiple units, apartments or entitlements in the land. Each unit owner owns their individual unit but also shares ownership of common areas which depending on the strata may include hallways, driveways, parking areas and recreational facilities. These common areas are managed collectively by all unit owners through a strata corporation or body corporate. Owners pay strata fees to cover shared expenses like maintenance, insurance, and repairs of these common areas.

Key Differences:

  • Property Type: Subdivision applies to land, creating individual lots for standalone buildings. Strata applies to buildings, dividing them into separate units owned by different individuals.
  • Ownership Structure: Subdivision results in individual ownership of land parcels. Strata involves joint ownership of common areas and shared responsibilities among unit owners.
  • Management: Subdivision properties are managed independently by each owner. Strata properties require cooperation among owners to manage shared facilities and comply with strata bylaws.

In summary, subdivision divides land into individual lots, whereas strata divides buildings into separate units with shared common areas and responsibilities among owners.

Subdivision typically means dividing a larger block of land into smaller lots or significantly altering the boundary of properties. Each block of land within the subdivision will have its own Certificate of Title and Folio Plan, these outline the owner of the property, the dimensions of the land and any encumbrances on the properties.

A development application is required to subdivide land, so in order for Council to issue any approval related to a subdivision, a proposal has to be provided.

Any proposal for subdivision will require planning approval. The application will follow the same processes as a standard development application and will be subject to Councils approval or refusal. Please see 'The Planning Process' for details as to how this process looks.

Subdivision of land is generally conducted by a registered land surveyor, as they will be able to advise owners of not just what the optimal layout of the subdivision will be for servicing, but also may advise what costs are associated with the development (i.e. water connections, power connections etc). Council generally encourages seeking professional advice to help you develop your ideas and designs as well as to help determine what information you will need to submit with an application.

Council officers are not able to provide advice on the estimated costs of subdivision outside of the lodgement fees, which can be found within Council's endorsed fee schedule.

This is a case-by-case, depending on specifics of the proposal.

After a planning approval has been issued, in some circumstances drawings will need to be provided for Council's approval prior to undertaking works for the subdivision. This is generally in instances where public infrastructure is required to be installed, which can include but is not limited to:

  • Vehicle crossovers;
  • Road works;
  • Water and Sewerage;
  • Stormwater;
  • Electricity;
  • NBN;
  • Any infrastructure (public or private) that is deemed necessary through the conditions of the permit.

Council will assess these design drawings prior to work commencing to ensure the public infrastructure being constructed is suitable to be taken over by Council upon completion.

Once all necessary approvals for these design drawings are issued, the applicant can begin undertaking works to meet the conditions of the planning permit.

During this period of works, inspections will need to be undertaken by Council's Infrastructure Department to ensure that all the relevant Council regulated infrastructure is to a satisfactory standard. The exact number of inspections required can vary greatly depend on the infrastructure required to be installed, the conditions of the planning permit issued and how large the subdivision is.

After the subdivision is considered 'completed', with all relevant infrastructure installed. Council's Infrastructure department will issue a practical completion certificate outlining that all works have been conducted to a standard Council is happy with. Once the practical completion is issued, a period of defect liability will follow (see 'considerations' for more information).

This only applies to subdivisions which require construction of public assets (i.e. roads, paths, stormwater mains etc).

Once all of the works are complete, a registered land surveyor is to provide Council with a 'Final Plan of Survey'. This is what shows the new titles for each lot that are to be registered and how they will be registered at the Land Titles Office.

Council will ensure that all conditions on the Planning Permit that has been issued have been adhered to; Practical Completion has been issued and any relevant fees (for example Public Open Space contribution, Defect Liability, engineering fees) have been paid prior to sealing the new title plan.

Once the final plan has been sealed by Council, this plan is required to be forwarded to the Land Titles Office for registration.

Fees

Council charge a number of fees for subdivision including fees to:

  • lodge the planning application;
  • engineering drawing approvals;
  • public open space contributions;
  • Inspections; and
  • Sealing of Final Plan.

The exact fees required to ensure a subdivision to standard can vary greatly, depending on the infrastructure required to be installed, the conditions of the planning permit issued and how large the subdivision is.

Public Open Space Contribution

  • A public open space contribution is generally required for residential subdivisions that will, or is likely to, increase the demand for public open space.

This entails a contribution to the Council generally amounting to 5% of the land area's value in the final plan of sealing, determined through a valuation paid for by the subdivider. This contribution aligns with Section 117 of the Local Government (Building and Miscellaneous Provisions) Act 1993 and aims to enhance community amenities, such as parks, recreational areas, or green spaces, to accommodate the needs of residents of the municipality.

Post-Subdivision Responsibilities

A defect liability bond period for public infrastructure is a timeframe following practical completion during which developers are responsible for correcting any defects in the infrastructure. This generally involves providing Council with a bond for the public works that is not fully released until the defect liability period finishes and no defects are identified. It ensures that infrastructure meets specified quality standards before a final completion certification is issued.

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