Sub-dividing - what you should know
If you're sitting on a large piece of property that you're not entirely sure you want to sell, one of the options you can look at is sub-division. Sub-dividing a property is a process whereby a single property is split into two or more separate properties. Although sub-dividing a property can have many benefits it can also, however, be a costly and lengthy process; so, before you make a decision, here are some things you should know:
Pros and cons:
Sub-dividing your property can have many pros; however, it's important to also be aware of the cons.
Financial benefits from renting or selling the additional stands
Downsizes a bigger plot into a more manageable size
Lower property rates and taxes
Minimizes the security risks that come with living on a big property
Fewer maintenance costs
Can take up to two years and can be costly, especially if your property needs to be rezoned
Legal objections can be lodged by against your subdivision
There may be council restrictions on subdividing in your area
Location and legislation
Individual suburbs are subject to different zoning laws, density requirements and council regulations, which results in a slew of different requirements and legislations for subdividing. This means that the area you live in may not allow for subdivision. As such, it is important to consult with a town planner who will be able to tell you what, if any, legislation will hinder your application to subdivide and what all your options are.
Types of sub-division
There are a few different subdivision options you can choose from, including:
Subdividing, keeping your house and selling off the stands
Subdividing, keeping your house and developing the stands
Subdividing, demolishing your house and then selling the property
The process itself
Before subdividing your property, you should consider speaking to a real estate agent, town planner or surveyor about what the subdivision would entail time and cost-wise. Once you have made the decision to subdivide your property, you will then need to enlist the services of a town planner, who will ensure that you are aware of any restrictions, as well as notifying of the proposed subdivision and handling any subsequent objections. The town planner will then draw up an application for subdivision and submit it to the city council for approval. Once the city council has approved this application you will then need a surveyor to draw up a subdivision diagram which will then need to be registered with the Offices of the Surveyor General.
The next step is to get a conveyancer who will be responsible for getting the Deeds Office to issue a Certificate of Registered Title for each new piece of land so that, as the owner, you will be able to either sell, develop or build and then rent out each stand.
In closing, subdividing your property can be a timeous and costly undertaking, so it is important that you seek out professional advice before making the decision to subdivide. Once you do decide to subdivide however, you stand to reap many benefits - financial or otherwise.
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Author: LV Digital