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Subdividing in
Wellington City
Urb a n Strate gy Gr o u p
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For Further Enquiries Please Contact:
Urban Strategy Group
First Floor
Wellington City Council
101 Wakefield Street
Wellington
Ph 801 3590 Fax 801 3100
ISBN 0-909036-66-7
February 2004
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Contents
SUBDIVISION TYPES ......................................................................................... 2
Fee simple.....................................................................................3
Unit title .......................................................................................3
Cross lease .....................................................................................3
Rights of way .................................................................................3
HOW DO YOU SUBDIVIDE?.................................................................................. 3
Part I – Gaining Council approval ........................................................ 3
Suitability of land or buildings for subdivision .........................................4
District Plan rules.............................................................................4
Other consents ...............................................................................5
Applying for a subdivision consent .......................................................5
Processing of the Consent ..................................................................5
Conditions of Consent .......................................................................6
Objecting or lodging an appeal to a decision or
condition of Consent.....................................................................6
Part II - Compliance with conditions of the subdivision
consent and Council approval to the legal survey plan ............................6
Part III - Lodging legal plans and survey documents
with LINZ to gain approval as to survey................................................7
Part IV - Legal requisition to your solicitor so that
certificates of title can be issued ........................................................7
FEES AND CHARGES ......................................................................................... 7
A SUMMARY OF THE FIRST STEPS FOR SUBDIVISION .....................................................8
“Sustainable subdivisions is the art of carving up land in a
sustainable way for future generations whilst having taken into
consideration the needs of a range of people”
PDWCC38597
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TYPES OF SUBDIVISION
The legal division of land or buildings
for separate ownership is known as
“subdivision”. The Resource Management
Act 1991 (the RMA) sets out the statutory
requirements for subdivision and the need
for Council consent. The types of subdivision
possible are:
•
New lots or sections (fee simple) that
can include a boundary adjustment
•
Unit title
•
Flat plan (cross lease)
A fee simple subdivision creates a new
allotment from an existing allotment. A
new certificate of title is created for this
new parcel of land and this is independent
from any parent title. This is the most
common form of subdivision.
A unit title subdivision creates a number of
properties (flats or units or semi-detached
dwellings) over an existing parcel of land
(allotment). The unit title plan identifies
each household as a “principal unit”.
Garages, sheds and the like can be called
“accessory units”.
A principal unit may be specifically
linked to an accessory unit (for example
a specified unit and garage are held
together). In some instances, the unit plan
may also show yards associated with each
unit. The units usually have a share in the
common property such as vehicle access/
manoeuvring areas, lifts, stairs, gardens
and so forth. A body corporate must be
formed to manage the common facilities/
insurance/maintenance. The limits of the
unit and the common property are shown
on the certificate of title.
A cross-lease subdivision is generally
less desirable in today’s markets. In this
instance the household unit is usually
identified as a “flat” and the remainder
of the site (gardens, vehicle access/
manoeuvring areas) is usually held in
common ownership. That is, there is an
undivided share between the number
of “flats” on a site. While there may be
fences put up between units, technically
speaking, owners of the other “flats” have
a legal right to the “common area”. The
boundaries of the flat and the common
area are shown on the certificate of title.
Cross-lease subdivisions tend to be more
restrictive compared with fee simple or even
unit title subdivisions. For example, you
are legally required to obtain the written
approval of other parties in the cross-lease
if you wish to make any significant external
alterations. The alterations should be
recorded on the cross-lease title on each
occasion. This is not usually a problem when
neighbours and cross-lease parties get
along and are aware of the limitations and
restrictions that a cross-lease involves, but
cross-leases can become very difficult if you
don’t get on with the other parties in the
cross-lease.
External alterations that change the limits
of the flat on the certificate of title will also
involve survey and legal costs. We strongly
advise against the creation of new cross-
leased titles - a view also held by the Law
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Society. A change to the law preventing
the future creation of flat plans is being
considered.
Rights of way
If you want to obtain or provide rights
of way over land then Council approval
is also necessary. A right of way is not a
subdivision but a legal right granted to a
person, or body of people to use land for
access. Such approvals are controlled by the
Local Government Act 1974. Rights of way
must also be surveyed.
Where a subdivision includes the creation
of a right of way, both applications are
usually lodged and processed together. A
right of way will need to be formed to an
acceptable standard before the Council will
give its final approval.
HOW DO YOU SUBDIVIDE?
The process of subdivision is lengthy and
involves a number of parties including:
the applicant, a registered surveyor; the
Council, Land Information New Zealand
(LINZ), Land Title Office (now part of LINZ)
and solicitors.
Each party has a specific role in the process
and as a general guide the process could
involve up to one month per party. In
other words a typical subdivision process
can take some 5-6 months in total. This
is particularly important to bear in mind
so you can plan, for example, for interest
rate changes, holding costs and the need
for certificates of title to be issued before
you might be able to secure mortgages or
possibly a sale.
In summary the process of subdivision can
be split into four parts:
1. Obtaining subdivision consent from
the Council for the proposal.
2. Compliance with any conditions of
the subdivision consent and getting
Council approval to the legal survey
plan. This involves preparation of a
plan by a registered surveyor.
3. Lodgement of the legal plans and
survey documents with LINZ to gain
“Approval as to Survey”
4. Legal requisitions to your solicitor so
certificates of title can be issued.
Part I - Gaining Council approval
To subdivide your land or buildings, you
will need a subdivision consent - which is
a resource consent under the RMA. Refer
to the booklet entitled A Guide to Resource
Consents in Wellington City for details about
what a resource consent is and the way
these applications are processed.
You should employ a registered surveyor
to undertake a proposed subdivision. The
surveyor will assist you to establish:
•
whether your land or buildings are
suitable for subdivision
•
the best type of subdivision to meet
your circumstances
•
the relevant District Plan rules
concerning subdivision
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•
the consultation required with
those parties who may potentially
be adversely affected (for example
neighbours, service authorities,
community groups etc)
•
the information that must be
submitted with a subdivision consent
application
•
what other consents may be required
•
the type of conditions that could be
imposed by the Council on any consent
granted.
These matters are discussed below.
Suitability of land or buildings for
subdivision
In some situations, land or buildings may
be unsuitable for subdivision. For example,
the land may be subject to slippage,
erosion, poor conditions for foundations,
flooding, or may be close to an earthquake
fault line. Alternatively, to proceed with a
subdivision on a site subject to the above
may require extensive and additional
works. These works can add considerably
to the final cost of the subdivision. In some
instances these costs can be recovered by
the value of the new allotment created. In
other cases they can make the profitability
of the subdivision marginal.
District Plan rules
In Wellington City there are no longer
minimum site areas specified in the District
Plan for a new allotment. For instance
there is no rule stating that a front lot must
be a minimum of 400m
2
and a rear lot of
500m
2
.
Instead, the rules seek to ensure a suitable
standard of on-site amenity is achieved. For
example, a new allotment should be able
to accommodate, at a minimum, a house
(which meets all the relevant rules including
yards, height, site coverage, sunlight access
plane) and a complying on-site carpark
space.
Your subdivision application will need
to show that the new allotment can
accommodate a house. For this reason, a lot
of people have building plans developed
by the time they lodge the subdivision
application.
The Council must also ensure that the land
or the new allotment will be stable and
not increase risk of erosion or slippage,
that it will have legal frontage or access
to legal road frontage, and will be fully
serviced with water and drainage.
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A summary of the rules for a dwelling or
accessory building in the Inner Residential
Area and Outer Residential Area is available
from the Urban Strategy Group. For
subdivisions in specific character areas (eg
Mt Victoria, Oriental Bay, Bolton Street,
Thorndon); subdivisions involving multiple
units on one title, the Central, Open Space,
Rural or any other area, please refer to the
relevant rules in the District Plan.
If a proposed dwelling or accessory
building/s cannot fully comply with the
relevant District Plan rules then a land-
use consent will also be required. Both
a subdivision and land-use consent
application should be lodged and
processed at the same time. This enables all
aspects of the development and the effects
on the environment to be considered in an
integrated manner.
Other consents
In addition to land-use and subdivision
consents, a building consent under the
Building Act 1991 or an earthworks consent
under the Wellington City Consolidated
Bylaw 1991 could also be required.
Buildings form an integral part of unit
title and cross lease subdivisions and the
buildings must be erected before the new
certificate of title will be issued.
Your surveyor should be able to assist you
in identifying the range of consents you
may need.
Applying for a subdivision consent
The information required to be submitted
with a subdivision or land use consent
application is generally specified under the
RMA. For more specific guidance refer to
rule 3.2 in the District Plan.
Processing of the Consent
Resource consent applications can be
processed on a publicly notified or non-
notified basis. For details on how a resource
consent is processed, refer to the booklet
entitled A Guide to Resource Consents in
Wellington City.
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Conditions of Consent
The Council usually imposes conditions with
any subdivision consent granted to avoid,
remedy or mitigate any potential adverse
effects. For example, if there are earthworks
involved in a development, conditions may
be imposed about the timing of the works
and treatment of the affected areas such as
planting to mitigate the potential adverse
visual effects.
Conditions are also imposed on subdivided
land or buildings to ensure they can
function properly - that is, the roads, access
or rights of way are constructed and all
services (including water and drainage)
are installed to properly service the new
allotments. These works must generally be
completed prior to the issue of the title and
the sale of the property to a new owner.
In addition the Council imposes a
development impact fee for each new
household unit or allotment created. With
new allotments created there are additional
demands placed on existing services or
facilities.
The fee contributes to the maintenance of
the roading, drainage and water networks
and the provision of open space. Refer to
the General Provisions - rule 3.4 Financial
Contributions in the District Plan and the
Guide to Development Impact Fees.
If a land use consent is also granted, there
may be specific conditions associated with
that consent. These would also need to be
complied with.
Objecting or lodging an appeal to a
decision or condition of Consent
If the subdivision and or land use consent
application(s) was processed on a non-
notified basis, the applicant can object
to the decision or any condition(s) of the
consent.
Where the application was publicly
notified, the applicant or any submitter
may lodge an appeal to the Environment
Court over the decision or condition(s) of
the consent. See the booklet entitled A
Guide to Resource Consents in Wellington
City for more details.
Part II - Compliance with
conditions of the
subdivision consent and
Council approval to the
legal survey plan
Once the Council has granted subdivision
and/or land use consent and any objections
and appeals have been resolved, the
surveyor will carry out the land transfer
survey. The surveyor will accurately
measure up the land and place pegs to
define the new boundaries. The conditions,
discussed above, of the various consents
also have to be met. This may require
various works to be carried out by the
applicant.
When the requirements of the conditions
have been completed and the surveyor has
prepared the land transfer plan he/she will
submit the plan to the Council to be approved
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as being in accordance with the subdivision
consent.
The Council will inspect the land being
subdivided to ensure the various conditions
have been satisfactorily complied with. If
the Council is satisfied the survey plan will
be certified, then returned to the surveyor.
Part III - Lodging legal plans and
survey documents with
LINZ to gain approval as
to survey
The surveyor then lodges the survey plan
and various related documents with LINZ
for checking. Once LINZ is satisfied the
plan is correct it is “approved as to survey”
and passed onto the Land Title Office for
the final phase of the process - when
certificates of title to the new allotments are
issued.
Part IV - Legal requisition to your
solicitor so that certificates
of title can be issued
Before certificates of title can be issued for
the new allotments the Land Title Office
will require your solicitor to arrange for
various legal actions to take place - such
as the discharge of mortgages and the
preparation of new easement documents
that may relate to the new allotments. Once
these matters have been completed new
certificates of title can then be issued.
FEES AND CHARGES
An application fee is payable when the
subdivision or land use consent is lodged
- irrespective if consent is subsequently
granted approval or refused.
The RMA enables the Council to charge
the applicant the actual and reasonable
costs associated with the processing of the
application over and above this application
fee.
In addition to the application fee, separate
application fees are payable for the various
stages of certification required by the
Council and as described in Part II above.
This is to ensure that only those directly
benefiting from the application pay.
There is no provision for appeal when the
Urban Strategy Group set the charges. A
person can, however, lodge an objection
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to a one-off charge imposed, in addition
to the set fee, where it is not seen as actual
or reasonable. A current schedule of fees is
available from the Urban Strategy Group.
A SUMMARY OF THE FIRST
STEPS FOR SUBDIVISION
1. Identify land or buildings that may be
suitable for subdivision.
2. Obtain the current certificate of title,
aerial photograph and as much
information about the property as
possible. For a specific report about
the property you may wish to apply
for a land information memorandum
(LIM). A LIM compiles all information
known to the Council about a
property. Contact a member of the
Council’s Service Request Team for
more information about a LIM and the
application fee.
3. Check the District Plan rules to identify
the “zone” the property falls within
and the relevant rules that apply. If all
the relevant rules cannot be complied
with, for all existing and proposed
buildings, a land use consent may
also be required in addition to the
subdivision consent.
4. Find out the requirements for vehicle
access, drainage, water supply and so
forth. The requirements for some of
these matters may be controlled under
the Building Act 1991, the Wellington
City Consolidated Bylaw 1991 or the
Council’s Code of Practice for Land
Development. It is useful to be aware
of these requirements in the planning
phase of the project.
5. Get professional help from a suitably
qualified surveyor, engineer, resource
management consultant or land
development advisor. They can
inspect the property and provide
advice to help you take things forward
- including what information,
consultation and plans are required
for any subdivision or land use
consent application; what happens
after consents have been granted;
the works you must undertake and
complete or the bond you must pay;
the time frames and costs associated
with the project.
6. Keep in mind that subdivision is
usually a lengthy and costly process.
You need to plan your project and
finances with this in mind.
7.
Make a decision to proceed or not
with your subdivision proposal.