Hi…
I am new to prop dev. My first project being a 4 unit development. I’m learning so much but am a little stumped on this part….(the whole strata and titles thing)…
When i purchased the land it came with plans and council approval for the units (4 grouped dwellings), I also got the ‘Approval subject to conditions survey-strata plan’ paperwork from the planning commission.So now… everything is on track and I am in the process of getting work started on building of the units.
i have been advised that i dont need to worry about doing the strata survey part and this would have only been done if i planned on selling just the vacant lots And once the units are built i can get 4 seperate titles because i am doing strata build.
Yet i’ve also heard its worth doing? what exactly does all of this mean???Strata this strata that… i’m confused… even after 2 hours searching online.
One other thing i was wondering was…. who will own the driveway that is used by all 4 units??
Your feedback would be greatly appreciated
Hi Vonny,
Depending on what you are planning on selling etc. I can only speak for what we had to do and for Victoria
We needed to complete the subdivision part of our development first, who ever has done your working drawings or is helping you complete this project can help you with this. An architect or town planner can as well. Essentially after you have complied with councils wish list, you solicitor then takes all the relevant documentation to the titles (or whoever in your state) office and lodges it. The property is then titled as to the plan. So in you case where you may have common property this will then be shown on each properties title. Any properties freestanding are given their own title etc. Your bank will also have to tick this off so allow some time for this to happen.
Then you may need to look at the owners corp part which was the bit I couldn't find on the net, this may save you some time as well
I'll copy this in from one of our sources please do your won homework on this
- The Owners Corporation (formally called a Body Corporate) automatically comes into existence on the registration of the Plan of Subdivision. It has the same legal recognition as a company.
- The members of the Owners Corporation are the owners of the Units. Their liability and entitlement is set out in the Plan of Subdivision.
- The Owners Corporation can either be self managed by the Unit Owners or they can appoint a Company that is licensed to operation Owners Corporations by the Business Licensing authority (BLA).
It is not uncommon where there or 2 or 3 units that the owners decide to be self managed. This usually involves taking out public liability insurance and building insurance and collecting each owner’s contribution once a year when the premium is due. There may be small maintenance items relating to the common property
Our architect sort of mucked us around as I had my terminology incorrect the first time round, subdivision relates to the land being split up, strata titling relates to the title being split up.
If you are selling your solicitor can write an extra clause into the contract which covers any time that it takes to lodge this plan and means that settlement can be delayed if you get delayed. Once again please see your own advisers on this
Hope this helps in some way, good luck with your project!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Meare you planning to sell or not? why bother going through the cost of splitting them if you are going to keep them all? then you'd just have to start complying with annoying bodycorporate law. council rates could increase as well…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
JacM wrote:are you planning to sell or not? why bother going through the cost of splitting them if you are going to keep them all? then you'd just have to start complying with annoying bodycorporate law. council rates could increase as well…One reason to split them is because the banks like it – they will lend you 80% on individual units and only 70% of the whole project
Thanks everyone!
True on the bank thing, they don't love single title.Yeah, the other good thing is a quick exit. You can always sell one quicker than you can sell a block.
Considering it may take a council several months to rubber stamp the paper work, better to have it done sooner than later.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Me
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