Everything You Need To Know Before Subdividing Your Section

Everything You Need To Know Before Subdividing Your Section
Many property owners and developers in New Zealand plan to subdivide sections. This helps to build two or more properties on the original section, so the owner can either live in one and rent the other, or rent out each of the subdivided sections.  If you’re planning to subdivide a section in New Zealand, here are the basics you need to know before getting started.   

Types of subdivision 

There are two types of subdivision to choose from.  The first is unit title. This means giving individual titles to the units or dwellings on the piece of land. They can still share common spaces such as driveways and gardens, in which case a body corporate is required to manage the insurance and maintenance of those common areas.  The second type of subdivision is the fee simple or free-hold title. This is the most common type, and includes dividing the property into two or more sections. Then, a new titled is created for each section, and the owner holds all of the titles.  Most people will get professional advice from a lawyer to determine the most appropriate subdivision type for what you have in mind.   

The condition of the land 

The condition of the land is an important factor to consider when subdividing.  For example, is it big enough to subdivide in a way that will provide enough living space for each unit? Will one unit be larger than the other?  You’ll also need to think about the existing and planned utilities. This means planning how any new properties will be connected to the water, power, and gas lines, and how it would drain storm water and wastewater. Existing connections may suffice, or they may need to be upgraded or changed.  In terms of safety, you will need to determine if the land can actually support another unit on the property. Also, you’ll need to check if it is at risk of flooding, erosion, or other issues. A licensed land surveyor will be able to answer these questions for you.  Finally, you’ll need to check your local rules and requirements for driveway connections to the road.   


If you have never subdivided before, or are new to the property market, there are a number of financial obligations you’ll need to factor into your purchase and plans: 
  • Tax obligations due to the Bright Line test
  • Creating or adjusting infrastructure connections such as power lines
  • Processing fees for council consent
  • Development contribution fees (paid to your local council)
  • Driveway access costs for more than one unit
  • Land surveying fees to assess the property for subdivision
  • Land Information NZ fees for lodging legal title documents
  • Various professional fees for planners, lawyers etc
  • Costs for the new builds
Financing a subdivision can be a lot more costly than financing a simple single new build. It can also take a lot more professional input to ensure you are meeting all rules and requirements legally.  That’s why Hayman Lawyers specialise in legal advice and guidance for subdividing properties in New Zealand. We offer advice with planning, reviews of your subdivision plans, consent applications, title selections, and more.  Get in touch today to learn more about your obligations when subdividing property, and to find professional help with your plans. 
Related Posts
Leave a Reply

Your email address will not be published.Required fields are marked *