Strata Plan vs Plan of Subdivision – Property Developer Explains
A question I’ve been asked a lot over the journey is the difference between a strata plan vs plan of subdivision.
There seems to be a lot of confusion out there. So in this article, I’m going to clear the confusion up once and for all.
Firstly, the term “strata” isn’t really used anymore because all subdivisions are now under the subdivisions act.
Before we get too far into the article. If all you are after is some help then check out our property development consultants service.
Let’s get back into it …
A Strata plan was the document to define lot boundaries on a typical ‘in-fill’ (not greenfield) subdivisions between 1967 and 1988.
A strata plan would almost always include upper & lower height restrictions and common property.
Common property at ground level would be required. It would apply above and below the nominated height limits.
The body corporate would be the ‘owner’ of the common property. All affected titles would share the responsibility of the Body Corporate.
The Strata Titles Act (1967) was replaced by the Subdivision Act (1988) to modernise the definition (and presentation) of all subdivisions.
Essentially meaning strata plans have been replaced by plans of subdivision.
Plan of Subdivision
The Subdivision Act was introduced to facilitate a broad range of functions including (but not limited to):
Owners Corporations Act
The Owners Corporations Act (2006) was introduced as an amendment to the Subdivision Act. It was a replacement for all body corporates created since 1988.
Multi-Lot Subdivisions are fairly common these days. There is a potential for a single residential Lot (usually incorporating a unit, storage space and car park) to be involved in more than one Owners Corporation. Each with different functions.
Typically, the lot will be a member of an unlimited owner’s corporation that manages common services for all lots.
It arranges the insurances and maintenance of access points, driveways, landscaping and air space surrounding the whole site.
If the development has multiple levels the same residential lot may also be a member of a limited owner’s corporation.
This might control the lifts, access corridors, gym, pool, etc. These should only be accessible by the members of that owner’s corporation.
There may also be additional limited owner’s corporations for specific functions within the development. These owner’s corporations are attached to the subdivision and noted on titles.
For each owner’s corporation, the level of liability and entitlement per lot is noted as a percentage of area or value (or both) in comparison with other lots.
For example, a 3-bedroom penthouse with two car spaces would have a higher entitlement and liability percentage than a one-bedroom, one car space unit on a lower level.
In a large multi-level development, an independent owner’s corporation manager is usually engaged. They would maintain all aspects for the members.
This arrangement can also work for smaller developments (1-10 Lots). But typically, a lot owner would be the manager and work together with other owners if and when required.
Plan of Subdivision Process
The process of getting your plan of subdivision starts with getting your land surveyor to complete a re-establishing survey.
Your re-establishment survey documents your property’s land dimensions.
Then your architect or draftsman will design your development based on the dimensions detailed on the survey. They will adhere to all the relevant planning zone regulations and council requirements.
Once the council have approved your design, you’ll then work with your surveyor to subdivide the properties based on your design.
Strata Plan vs Plan of Subdivision Conclusion
So, in essence when you think strata plan vs plan of subdivision. One is the old way of doing things and the other is a new way.
As small to medium residential property developers based in Melbourne, we put a lot of time into not only understanding but perhaps, more importantly, managing the plan of subdivision process on every project, It’s something we see an as high priority.
On a side note, it is possible to subdivide your land before construction, to learn more click here.
That’s it, hopefully, you know the difference between a strata plan vs plan of subdivision.
If you still have some questions or if you’re looking for someone to project manage your next development project don’t hesitate to reach out 1300 799 277, we’d love to hear from you!