The titles in this format are based on the land content. A subdivision requires an application through the Western Australian Planning Commission and this initial application takes 3 months to issue. An approval to subdivide will be given with conditions requiring the developer to provide services & street access, and typically will be a 9 month process in total so the developer needs to plan accordingly.
The unit entitlements of survey-strata lots is calculated on the unimproved site value of the lots and ignores the value of any buildings on the lot.
BENEFITS
- No re-subdivision required when changing the buildings on the property, and no consents need to be provided from the other owners.
- No building inspection for the purpose of strata titles.
- No need to update unit entitlements if the buildings change.
- If timed correctly titles may issue early enough to enable the sale of lots prior to or during construction on the lots.
- After the issue of the new titles on the completion of the subdivision, banks will be able to increase lending due to the added security.
The issues to consider are:
- Typically more expensive than built strata
- Long time frame to achieve titles which means the process needs to begin around the time building designs are being considered, if not before
- May need to provide some services (Western Power dome, driveway construction, additional parking for the retained dwelling) prior to being needed if aiming for a sale of either an existing house or a vacant lot
- Intrusion easements for overhanging eaves and gutters may need to be considered
- Some services may require additional easements if not installed prior to the registration of the Strata Scheme
- May require a shared access by way of common property
