B1 - Subdividing Your Property
Subdivision is the legal division of land and/or buildings for separate ownership. Subdivisions are governed by the
Resource Management Act 1991 (the RMA) and require a local council consent.
You can subdivide your property in a number of ways. You can:
- If you are happy living in the area where you are now, subdividing could provide a lump sum of money
and/or new options to improve your housing situation.
- Subdividing would reduce the amount of section you need to maintain.
- Subdivision is a lengthy and costly process. You will need the financial resources to fund the process and upfront costs.
- You will need to obtain subdivision and building consents.
- You may have to pay income tax on the profits of the sale of the subdivided land.
What do I need in order to take this option?
- Your section will need to meet local council rules for subdividing properties.
- You need to be able to cover the costs of the consent and subdivision process.
- You will also need to consult professionals - such as a solicitor and surveyor - early in the process, in addition to talking to council.
Could this option limit my future choices?
No, unless the subdivision results in some shared access or other easement on your title, then, once complete, it will probably have little or no impact
on your future choices. It could have a positive effect in terms of the money you might get from any future sale.
It is essential that you seek information from your council about the possibility of subdividing your property before you start. If you wish to proceed, you will also need to get
Subdividing your land requires you to deal with a number of legal and technical issues:
- Council building and resource consent requirements, as well as subdivision and development fees
- Legal title
- Vehicle access and parking
- Utilities to each section
For more information
Talk to your local council, your solicitor and other relevant professionals (such as surveyors, architects and builders).