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Why a Certificate of Title is so important when subdividing

Posted September 4, 2020

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For most homes and parcels of land, the Certificate of Title doesn’t change much over the life of a property. There are only a handful of cases where you might need to update the Certificate.

One of these is if you’re planning on subdividing your parcel of land.

Redeveloping a parcel of land with townhouses, adding a second freestanding unit to your block of land, adding additional shopfronts and offices to a commercial property - there are many situations where the owner of a parcel of land may need to subdivide.

If you’re thinking of joining them, you’ll need to start by taking a look at your Certificate of Title...

What happens to your Certificate of Title when you subdivide?
Everything you need to know about plans of subdivision
Naturally, splitting your parcel of land into two separate properties will require the Title to be updated to create two individual Titles for the new properties.

And that starts by putting together a plan of subdivision.

This isn’t quite as simple as just taking a map of your parcel of land and drawing a line down the middle - in most cases, it takes a lot of planning and prep work.

This is a plan that lays out exactly how you plan on subdividing your parcel of land, laying out the boundaries for the newly subdivided properties as well as the creation of easements.

As we’ve talked about before, easements are attached to Certificate of Title forms, and give certain parties permission to use a parcel of land for their own purposes.

For example, if you’re building townhouses, you’ll need to create private access easements that allow residents in rear units to use some of a front unit’s land (such as their driveway) to access their own property.

They’re an important part of your subdivision plan - however, that isn’t the only thing in your plan that can affect your Certificate of Title.

Torrens Title is the most common type of land title in Victoria, with many townhouses using it.

For other types of subdivision like apartment blocks however, Strata Title might be more appropriate.

When drafting your subdivision plan, it’s also crucial when subdividing that you choose the correct type of Land Title.

These are just some of the things that affect your Certificate of Title when subdividing, which is why you should always get in touch with a professional surveyor to put together your plan of subdivision!


The subdivision process
1.  Determine whether or not the land can be subdivided:your Certificate of Title is crucial in completing this first step
2.  Engage a surveyor: a professional surveyor will draft up your subdivision plan, walking you through permit and application process
3.  Get approval: in addition to council approval, your subdivision plan needs to get the stamp of approval from bodies like utilities providers and VicRoads
4.  Registration:once everything’s done, your conveyancer formally registers your plan with the Title Office to create new Land Titles

While the duration of the process will depend on a range of factors including how quickly your surveyor and conveyancer work, as well as wait times for approval, typically the entire process can take several months.

Your Land Title isn’t just important in subdividing...
Think of consolidation as reverse subdividing - instead of taking an existing parcel of land and splitting it with separate Land Titles, in consolidation you take two different parcels of land and combine them.

While it’s literally the polar opposite of subdividing, there are some things that haven’t changed at all - namely, the Certificate of Title search is still a crucial part of the consolidation process!

Just like in subdividing, the first step in consolidating is obtaining copies of the Title documents for all the properties you’re combining.

Like with subdividing, this will help you and your surveyor uncover any restrictions that may impede your consolidation plans, and work around them accordingly.

Land Title searches in Victoria: the first step in subdividing
Before you even start putting together a plan of subdivision that will change your Land Title, the first thing you’ll need to do is get a hold of a copy of your Certificate of Title.

Starting the Certificate of Title search is the first step in subdividing. In some instances, the Certificate of Title may include restrictions that prevent you from subdividing or redeveloping the land at all.

The only way to know for sure is to get your hands on a copy.
  - The boundaries of your parcel of land?
  - Existing limitations that need to be addressed first?
  - Caveats and easements?

Each of these pieces of information are crucial when subdividing, and can pose significant challenges to be resolved before work can begin.

Land surveyors and the council require a copy of the Certificate of Title to work with, and it’s your responsibility to provide one.

Unfortunately, that can make an already busy time even busier - luckily, we’ve got just the fix for that.

Ready to start building? Start your Certificate of Title search with PSI!
If you’re planning on subdividing (or consolidating), chances are the Certificate of Title isn’t the only document you’ll need to get your hands on.

More likely than not, it’s only one of the many types of property information you’ll need to obtain over the course of your project.

That can mean a lot of additional work - fortunately, it doesn’t have to be this way.

PSI’s all-in-one property information services provide a one-stop-shop for all your property information needs. Using our system is as simple as starting with just an address.

All you have to do is select the documents and certificates you need, and we’ll get to work liaising with all various parties to deliver them straight to your inbox.

We take care of all the legwork for you - no more spending hours on the phone, lengthy email chains or waiting in queues.

Whether you’re a homeowner who’s subdividing or a developer looking for an easier way of obtaining property information on an on-going, our automated system can help!

Getting started is easy - begin your search here.

Got questions? Get in touch with our team on(03) 8527 6300 or click here to contact us online.

The information in this article is general in nature and does not constitute legal advice. As with all things property, we strongly recommend consulting a professional to ensure that all stages of your building project (including the Title search) go smoothly.