All land can be subdivided by a variety of methods. The most common forms of Urban Subdivision a surveyor does are:
Freehold Subdivision (fee simple)
This is the most common type of subdivision where the land is subdivided to create separate Certificates of Title for each new Lot. The new pieces of land are then solely owned by those named on the Certificate of Title.
Cross Lease Subdivision
This used to be a common type of subdivision and was a way of circumventing the council rules of the time. The total area of land is owned in equal shares by all of those owners of the cross lease.
The individual owners then lease a particular building or buildings that are shown on the Flats Plan for 999 years. The share of land that their building sits on and the building is then registered in a cross lease agreement on the Certificate of Title.
A cross lease tends to be used for two or three houses within the same lease. Any more houses tends to make the management of the leases more difficult. In the cases where there will be 4 or more properties on the same property, a unit title subdivision is a better alternative.
Because the exterior walls of the building are shown on a flats plan, every time the shape of the building changes a new cross lease plan should be prepared.
Unit Title Subdivision
This form of subdivision is used mainly when one building is over another i.e. an apartment complex. But can also be used for individual houses, joined houses or a commercial block of buildings where the owners share common land. In each case a Body Corporate (owners committee) is set up to administer the property, and all property owners become members of the body corporate. A body corporate can be useful if you want to govern how a development is to look or to manage areas of common land. The Body Corporate can employ a company to administer the body corporate rules, collect any levies and keep all property owners informed.
A unit title development is best suited for larger developments of at least four units.
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