All
I own block of 4 units and I am looking into strata titling them and selling two of them off. Do you any of you have any experiences in this area and what the logical steps to getting this done are.
Assume I know very little about the process.
RegardsJosh
~JPH
i was looking into this a while ago and didnt get very far. i did find out that if you go to the council chambers, they will have a department there that can help you with the information you need.
sorry its not much help
shaunLead, Follow or get out of the bloody way
Hi Josh,
We are going thru this process with a block of 4 units at the moment.
The first step is probably to get in touch with a Surveyor, to draw up plans etc. They are able to do the whole thing for you, which is what we are doing.
Before our Surveyor went ahead with anything, to save us on costs, he got the Planning Manager from the town to look at the units to make sure that there should be no real costly problems.
We have been advised to concrete the driveway & carports, which is scoria at the moment, and a few minor other jobs. All up the process should cost us approx $20,000 we think from start to finish.
We’ve been told ours will take approx a mininum of 6 months, but each area & council is different. Don’t believe you will get it done in any less!! Surveyors don’t like to be rushed…[}
]Regards,
Del
In New South Wales the laws regulating residential strata titles are the “Strata Schemes Management Act 1996” and “Strata Schemes [Freehold Development] Act 1973”.
A “strata company” is the managing entity created when a strata plan [referred to above] is registered with the Land Titles Office.
The strata company maintains the property on behalf of the unit holders and enforces the property’s by-laws [rules and regulations which the owners and residents must abide by].
I recommend contacting professionals who specialize in strata schemes to ensure the process is managed correctly.
— Michael
Talk to your local council – specifically the duty planner.
You will find it is a straightforward process. But the difficulties may lie in the works you may have to complete to get it to the required specifications ie fire proofing.
He should point you in the right direction though.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I have spoken to the “duty officer” at the council and he has not done this before and he just said call a surveyor.
Guess I will talk to the surveyor and see what he thinks.
Thanks for you your input.
Josh
~JPH
Hi all,
I am a Town Planner and a buddying propoerty investor. The advice i have read so far is all good. My suggestion would be to get a building surveyor (or good builder) to first have a look at the units, particularly in regard to fire safety. You might find the building needs a substantial upgrade before you can strata title the building. If the building surveyor gives the green light, you then need to prepare plans for Council showing the seperation of the titles (easy job for a surveyor) although you generally don’t need a survey. Accurate site and floor plans should do. Show on these plans the floor areas, the different lots, carparking link to each lot (if there is carparking) and common space. You will probably need to prepare a statement with the application……… Just realising that i am writting alot, send me a private e-mail and i will give you the full brief, otherwise this message will go on for ever.
In NSW it pays to ensure the units are not classified as “low cost housing” as you may not be able to sell them for a number of years after doing the strata. Again ask the surveyor.
Cheers
Josh
Email me if your query relates to Qld and i would be happy to advise you.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Crackles, obviously I cannot argue the point when you say that no survey is required.
I am however wondering when you use the term ‘although you generally don’t need a survey. Accurate site and floor plans should do’
I am wondering how one would know they are accurate without a surveyor attaching his moniker to the plan ?
It may prove very costly to sell a unit without the dwelling plan having been prepared by a surveyor as the buyer may well come back later on (even years later) and say ‘You told us (via the plan) that the living area is 72 sq. metres. I have had it checked and it is only 64 sq. metres. I therefore make a claim on you for compensation.’
Worse still, the buyer may want the contract rescinded because he was misled !!
My suggestion would be to employ an architect rather than a building surveyor or good builder (to first have a look at the units, particularly in regard to fire safety).
In actual fact, council should be one’s first port of call to find out for example what parking requirements they would be looking for and what landscaping needs to be undertaken so you know right at the beginning, before you have even started yet whether it is feasible to proceed.
Pisces
JPH, I suggest you also first discuss the situation with your accountant.
Pisces
Why should you discuss it first with your accountant??
Just wondering..
>>Why should you discuss it first with your accountant??<<
It is always better to discuss it before, rather than later, with one’s accountant. [
] (bad joke)The real reason I said so ?
I am not an accountant though I try to look at things and situations from a common sense point of view.
Firstly, properties owned before a certain date (1986 ?) do not attract tax when sold.
The moment one strata titles and subsequently sells
all or part of the property it looks (to me) as if the issue may become clouded.The tax department may well take the stance that you are a developer and had in mind all along to do so so as to produce a profit.
The tax in this situation may be more than if one only were to pay the tax on a capital gains basis.
It is a similar situation to when one owns a property which is (or becomes rezoned to) a development site.
Again, in my way of looking at things, I would either have my buyer apply for development approval (or I may even sell the property to a company I own) rather than applying for the development consent in my own name.
Paranoic ? Perhaps. [
]BTW one will generally be able to sell a development site for more money with, rather than without, development consent.
Pisces
Thanks for the reply..
Del
Hi Pisces,
Yeah, i can clarify a couple of your points. There are two stages to getting strata subdivision approval. The first stage is Development Approval (DA). You don’t need a final copy of your survey when seeking DA Approval. Once you have DA approval there will be numerous conditions of consent which may inlude fire safety, connection of services, and finally a copy of the final Survey. You need to comply with these conditions and take your application for subdivision to Council. Upon Council’s satisfaction that you have complied with the relevant conditions and have the relevant certificates, Council will sign your linen plans and you cen then register the plan with Land and Property Information (NSW) Why do i suggest a building Surveyor? An architect will not be qualified to check the building for structual suitability or for fire safety. Unless you are doing alts and adds, a architect won’t be needed. You should also be aware of SEPP 10, this is a stste planning policy with regards to retention of affordable housing. check http://www.dipnr.nsw.gov.au
Hope this all helps.
Crackles
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