Subdivisions come in many shapes and sizes, from large-scale residential subdivisions by developers to parents cutting off part of their backyard for their child to build on.

The principles and processes are much the same, regardless of the size of the subdivision.  Each step of the process needs to be carefully followed to ensure the process runs smoothly and efficiently.

How do I subdivide my land?

Subdivision includes a division of land by:

• Boundary adjustments;
• New cross leases;
• Correcting defective cross lease titles where defect relates to footprint;
• Correcting defective unit titles;
• Conversions of cross lease to fee simple; or
• Conversion of unit title to fee simple.

There are two key roles to play in subdividing land. One is performed by a surveyor and one is performed by a legal advisor.

Surveyor’s role

The main job of the surveyor is to carry out a formal survey of the land, to show the land’s new boundaries. This formal survey is known as the LT Plan.

As well as this, a surveyor will:

• Prepare a Memorandum/Schedule of Easements outlining existing easements and other interests remaining, as well as any new interests that may exist;
• Assist with planning concerns by defining areas to be shown on plan. e.g. covenant areas, easement areas, building platforms etc; and
• Request approval of the LT plan from the Council.

Legal advisor’s role

Legal advisors play a significant role in the subdivision of properties. This role includes:

• Checking title for any restrictions on a subdivision;
• Obtaining consents – mortgagee, neighbours, ground lessors;
• Preparing agreements related to the subdivision (Agreements for Sale and Purchase, Agreements to subdivide or Agreement to grant an easement);
• Drafting private easements and covenants that reflect the intentions of the parties and to reflect the LT Plan.
• Arranging the signing of Authority and Instruction forms to attend to registration;
• Signing the Order for New Certificate of Title; and     
• Registering the documents through Land Information New Zealand, including copies of section 223 and 224 certificates and consent notices.

Checking titles

When somebody wants to subdivide their land, an important first step is to check the title to see if there are any restrictions on subdivision.

It is possible that there will be something preventing you from subdividing one of these titles, so checking before you subdivide can save time and money in the long run. Some checks that we recommend making are:

• Head Titles – ownership, mortgages, caveats or encumbrances;
• Neighbours’ titles if there are any involved in the subdivision;
• Limitations as to the parcels on the land; and
• Any covenants restricting subdivision.

Your legal advisor will be able to advise you about how to abide by certain restrictions in some cases, and the process to follow if your land is “limited as to parcels”.

The process of subdividing land can be quite a daunting task, and if not correctly performed can be costly and time consuming. If you are considering subdividing your property it pays to seek advice from a legal professional with experience in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.