WHAT DOES SUB DIVIDING YOUR PROPERTY MEAN

Sub dividing property is when a property owner decides to divide his property into two or more smaller pieces of property.  The new pieces of property are called sub divided portions or stands.   The property owner can then sell one or more of the sub divided portions to a Purchaser.

Sub dividing your property is possible in any area but is most popular in older areas where the size of land is larger.  The trend is to sub divide these larger stand into smaller and more manageable stands.  Not only developers sub divide property, ordinary residential owners of property also often sub divide their property to either sell or make a profit or contain costs by living on a smaller stand and to feel more secure.

WHAT ROLE DOES THE TOWN PLANNER PLAY

When you decide to sub divide your property, the first professional you need to consult is a town planner.  The town planner will advise you on the process and help you apply to your local authority or municipality to get the permission needed to sub divide.

The municipality will look at different factors in deciding whether to give permission to sub divide.  These factors include the size of your property, the availability of electricity and other municipal services.  The municipality will also look at the impact of smaller stands on an area such as the impact of increased traffic etc.  The role of a town planner is inter alia to motivate your application taking into account the various factors.

WHAT MUST YOU CONSIDER BEFORE SUB DIVIDING

Whilst sub dividing property can be very profitable it is important to be aware of the pitfalls so that these can be avoided.  The most important of these is the “time” and “cost” involved in sub dividing your property. The town planner must be asked to help you estimate the realistic time period to complete the sub division and must be asked to help estimate the costs of sub division, taking into account not only the town planning fees but also all the other costs such as the land surveyor costs, contributions to council and the potential costs of having to install sewer lines or move electrical boxes.  Each sub division will have to be looked at on an individual basis to see what potential time and cost factors are applicable so that the “surprise” element can be avoided.  The “cost” and ‘time” factors must be looked at in light of the different phases to a sub division as set out below.

WHAT ARE THE PHASES OF A SUB DIVISION

The sub division process can be broken down into three separate phases.  The first phase is getting the permission of the municipality to sub divide.  A common mistake made by property owners is that they think this is the end of the process, but it is not, it is only the first phase.

When the municipality gives permission to sub divide, they include various conditions that must be complied with before the new stands can be transferred in the Deeds Office.  These are called the “Legal Admin” requirements or the “Regulation 38” requirements.  This is the second phase of the process.  What property owners do not realize, is that the town planner’s job does not extend to helping the property owner fulfill these requirements unless this is specifically arranged.  To avoid unnecessary delays and expenses the property owner is advised to discuss this phase of the process with the town planner or a conveyancing Attorney very specifically in order to establish what is required.  There are companies who specialise in the fulfillment of “Legal Admin” or “Regulation 38” requirements who can be used to help.

The final phase of the process is the transferring of the newly sub divided stands to the new owners in the Deeds Office.  This is done by the conveyancing Attorney.  The conveyancing Attorney will draw and have signed any documents or servitudes that may need to be registered.  These could include servitudes of right of way, sewer servitudes and a variety of council servitudes

 

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