(WA) Resubdivision of a survey-strata - Does this impact my neighbour's land title

Hi All,

i am about to commence the subdivision process of my property which sits on a strata-title.

I, lot 1, am the property at the front and my neighbour, lot 2, is at the rear of the property.
The proposal is to split lot 1 into lot 3 and 4 as shown in the image. The details/survey of lot 2 remain unchanged. I've highlighted lot 1 and (future lot 3 and 4) boundary in yellow.

Does anyone know if the subdivision of my lot, will impact my neighbour's lot 2 in any way, more so in terms of impact to their land title. Will they need to make any changes to mortgage docs etc. I understand the strata-plan will have to be updated.

Furthermore, we currently do not pay strata (there is no common property, only easements for vehicle access etc), both lots have their individual insurance. Will the subdivision of lot 1 require there to be strata? Or is this up to the owners of all the lots to decide.

Thanks!

Edit: surveyor has said the strata plan which is say strata-plan 5111 will be updated to strata-plan xxxx (8000 for arguments sake). This may then be reflected in neighbour's certicate of title as lot 2 on strata-plan 8000 (previously lot 2 on strata-plan 5000. Will need to confirm with a settlement agent whether they would need to update their mortgage details based on this..

 

The way the plan is drawn suggests Lot 2 owns the vehicle access from the street. The new lot 4 would need to negotiate access with the owner of Lot 2 if that is the case, as would lot 3 if they use the driveway.

 

Do you have your neighbour's permission? Wouldn't the unit entitlements need to be changed? And possibly a few other things implemented because its no longer a 2 lot strata scheme?

 

assuming you have approval as @thatbum said,
new rights ( or terms) will need to be created so the new lots 3 & 4 will have rights over the existing easement shown in SP####.
also in NSW you would need to reconfigure the unit entitlement ratios.

so yes the owner of lot 2 will need to have their title reflect all the changes. you cant do it without them.

i would ask your Surveyor. he will be drawing the plan.

 

thanks everyone, yes I am going through the process of seeking their approval and part of it is understanding what is involved and how it will impact them. I'd like to explain it to them so there arent any surprises for them down the track.

in terms of the unit entitlement, yes surveryor said these will be updated but won't affect lot 2's unit entitlement, it will just be allocating it between lot 3 and 4 (which are currently lot 1).
cheers

 

Really? That's pretty surprising. So they're basically saying that the value of the rear lot won't change, and the value of the new lots added together will be equal to the existing single front lot.

How likely is that?

 

Hi thatbum, im not very familiar at all with unit entitlements, but here is what i've found
"
The unit entitlement is a whole number expressed as a share of a total value and is set by a Licensed Valuer.

In a Strata scheme, the unit entitlement of strata lots is calculated on the ‘improved’ value of the land being the capital value of the buildings on strata lots as well as the land component (whether it is common property or individually owned).

In a Survey-Strata scheme, the unit entitlement of survey-strata lots is calculated on the ‘unimproved’ site value of the lots and ignores the value of any buildings and structures on the lots." This is from: WHAT IS THE PURPOSE OF THE UNIT ENTITLEMENT IN A STRATA SCHEME

Can i ask how unit entitlement will affect this survey-strata scheme? we dont currently pay strata levies

 

Are you relying upon the total strata development limits - E.g. plot ratio?

Three lot strata seem to require an AGM and you would be diluting lot 2's interest in the scheme ....
--
Special resolution – schemes with three to five lots
For three to five lot schemes, those that vote for the motion must hold at least 50% of the unit entitlements, as well as achieving the following number of votes:
- two lots in a three-lot scheme
--

 

interesting thanks bunkai, at the moment for the two lot scheme we dont have an AGM or body corporate. I wonder if this is required going forward and if so, how it needed to be handled.. seems to be a lot of hurdles for this one.

 

Maybe read the strata legislation....

 

Probably just voting entitlements. But it still would surely dilute the other lot holder's entitlement? I can't see how the newly created lots could be worth the same as just an existing single lot.