Subdivide before construction?

Hey All,
Does anyone know can you subdivide your block before you begin construction? I have been advised councils do not like this?

If so what happens in the event you want to subdivide your block and then sell the land with DA for someone else to construct?
 
I'm assuming that you are talking about Melbourne given your location. Most Councils will let you do this. If you haven't started construction you will usually need to enter into a Section 173 Agreement with the Council (legal agreement). This agreement will be placed on the title of the undeveloped lot and will require that the approved planning permit for development be constructed (or a new permit sought for the land). This means that you can sell and the new owner is required to build what has been approved or apply to the Council to vary it.

It is pretty standard practice and some Councils even have a template document that you can purchase, otherwise you will need to get a lawyer to draw up the agreement.
 
Water companies often require Section 173 Agreements

It is possible to obtain a subdivision prior to construction, but it will generally save you time and money if you undertake both Council applications at once (which is why developers usually do this).

A Section 173 Agreement may be required by the Council, depending on the nature of the land and your proposed development. Generally the water authority will require the Agreement (its prerogative as a Referral Authority), to ensure you sufficiently include drainage and sewerage assets on site.

You will only receive final certification/sign off from the Council (required for registering the new title) if you comply with the Section 173.

Good luck! :)

Note: the above is general information and should not be considered as legal advice.
 
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