How does conveyancing work?

One thing that is pretty rare these days in the Australian property market is decent land to build on. In fact, there is very little land left for sale whatsoever within 5km of capital city areas within Australia - unless we are talking subdividing larger blocks. Generally speaking, a block of land has to be about 800m2 to be able to be subdivided.

There are certain areas of larger capital cities where these rules are being relaxed, but if a block of land is under 400m2 you will have issues building your home, and while some land parcels are being subdivided to as little as 292m2 - ensure you do all of your checks and balances with the local council before you start trying to subdivide a property.

Things to consider if conveyancing for a subdivision

• Zoning

If you are subdividing a block of land in the hope of selling it off so that a future property owner can build their own home on the land you have to make considerations as to the type of zoning on the land.

For example, if a property is B-zoned, then you are able to build up to 3 storey group title properties on the land, but, if the parcel of B-zoned land is too small (check what is too small with your local council as this differs in certain areas of Australia), then using the land as a group title possibility would not be a feasible selling point.
If the land is A-zoned this means a standard home only can be built on it.

A-zoned properties are the easiest to subdivide as you can make them much smaller than those that are B-zoned. Multi-zoned property means the property can be used for industrial or commercial buildings and has another set of rules regarding size - the first thing to check if conveyancing for a land subdivision is the zoning that applies

• Boundaries

The boundaries of the subdivided parcel of land are very important - some councils in Australia allow homes to be built right on the boundary of the parcel of land, but beware if you are considering this, technically your neighbour owns a panel of your home as their own fence.

Imagine if they decided to bounce a tennis ball off it at 3am - it's their fence, they don't have to worry about the fact that it might also be your bedroom wall.

• Drainage

Large parcels of land that will become subdivided home sites must all have their own drainage. The drainage capacity of a block of land can only be determined by a qualified builder. Find out if the land has appropriate drainage sooner rather than later. You can never sell a parcel of land for a home site if it's not property drained.

• Covenants or restrictions

Some housing estates have "covenants" which determine the type of driveway material you have to have, the colour your house must be (usually about 15 to choose from) and perhaps even restrictions on gardens etc so that the housing estate maintains a certain " look and feel". If covenants apply in the area in which your land in need of subdivision is located, check with the developer if this will affect your ability to subdivide.