Essentials to Subdividing Land

Subdividing land can be a fantastic way to boost the value of your property and make it easier to sell off in smaller parcels while you continue living on your own one. You need to get all kinds of approvals to be able to subdivide your land, but when all is said and done you can end up making quite a handy profit, making the time and effort well worth your while. Obviously, subdividing a kit home into custom homes will be a lot more complicated than subdividing a vacant plot of land, but both require a similar process, so take a look at the following ideas and make sure you at least know the essentials.

Building regulations

Every local city council will have its own building regulations and zoning requirements, so make sure you know all about those that will affect your property. There will be a minimum lot size permitted by local zoning laws, so in order for you to be able to subdivide you will need for both of the divided lots to meet these size requirements. It may take a bit of research and some meticulous planning to ensure you cover all of your bases, but this will save you hassles later on when try to have your plans approved.

Hiring a surveyor

Once you have done some of your own research and are certain it is possible to subdivide your property, the next thing you should do is hire a surveyor to draw up the plans for you. As much fun as it sounds to draw up your own plans, if you want them to be done in a way that allows them to make it through the council approval process, you are far better off having a professional surveyor take care of this important step for you.

Lands Titles Office

Once your plan has been approved you will need to submit a copy of your approval document, your approved plan and often a whole host of other documentation to the Lands Titles Office. For this stage to go smoothly you will almost always need to have the paperwork prepared for you by either a solicitor or a registered conveyancer, which can often be one of the most expensive parts of the entire process. Once this process is completed, you will be issued your certificates of new Land Title and you are free to sell it if you please.


If you subdivide your land and want to sell off the parts you aren’t living in, it will be treated by the government as an investment property for taxation purposes, and will therefore be subject to 15 per cent capital gains tax — plus whatever state government taxes apply. One way to dodge this hefty tax is through the 1031 Tax Free Exchange, otherwise known as the like-kind exchange, where if you purchase another investment property of equal or greater value within a certain time period following the sale of your subdivided piece of property, you can avoid the capital gains requirements. Be sure to look into the fine details of any taxes you may be in for if you plan on subdividing your property to sell, because otherwise it could leave you with far less revenue than what you may have thought.