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What is partitioning of a property?

Partitioning a property refers to the process of the owners of a property dividing that property into multiple separate and distinct lots, with each lot being owned by a different person. This can be done for a variety of reasons, including but not limited to the desire to sell off a portion of the property only, to separate business and personal assets or to manage the distribution of property assets among family members. Whatever the reason, partitioning a property requires careful consideration and planning.

Property Partition Step 1: Consult a legal professional

The first step in the process of partitioning a property is to consult with a legal professional. A property solicitor will be able to advise you on the legal requirements and processes for partitioning and assist with the drafting of any necessary documents. They can also advise you on any potential obstacles or issues that may arise. It is important to have a clear understanding of the process before proceeding, as partitioning a property can be a complex and time-consuming process.

Property Partition Step 2: Surveying

You will then need to have the property surveyed. It is important to work with a registered surveyor to determine the exact boundaries of the property and to prepare a survey that accurately reflects the proposed partition. The surveyor will be able to provide you with a detailed map of the property, which will be used to determine the exact boundaries of each separate lot. This is important as it helps to ensure that each lot is clearly defined and that there is no confusion or encroachments between the different lots

Property Partition Step 3: Local Council

After you have completed the survey, you will need to liaise with your local council. This may include obtaining zoning permits, building permits, and other regulatory approvals. This step can be time-consuming and may require the submission of various forms and documents, so it is important to plan accordingly.

Property Partition Step 4: Subdivision

Once you have obtained the necessary approvals, you can begin the physical process of subdividing the property. This may involve the construction of new buildings, walls, or other structures to divide the property into separate lots, and then registering the physical subdivision with New South Wales Land Registry Services.

After the subdivision of the property is registered, the owners of the property will need to enter into an agreement for partition. The agreement will specify who is responsible for the cost of this division, and it is important to ensure that the work is carried out to a high standard, as any mistakes can have a significant impact on the value of the property.

After the owners have entered into the partition agreement, a property valuer needs to be engaged to value each of the separated lots, and the transaction is submitted to Revenue NSW for stamp duty assessment and then to New South Wales Land Registry Services for subsequent registration so that each lot has a different owner.

In conclusion, partitioning a property is a complex process that requires careful consideration and planning. It is important to work with experienced professionals, including a property solicitor, surveyor, and valuer to ensure that the process is handled properly, and that all legal and financial matters are resolved. With the right team in place, partitioning a property can be a great way to create multiple assets from a single real estate investment.

If you are seeking to partition a property, Long Saad Woodbridge Lawyers’ property team is ready to assist. We are contactable on (02) 9279-4888.

Important Disclaimer: The content of this article is general in nature and for reference purposes only.  It does not constitute legal advice and should not be relied upon as such.  Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.



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