Property Development and Subdivision

We can help at every stage – from due diligence and checking the feasibility of the project when you buy, through to planning the project, obtaining subdivision consents, and managing and completing the process. We work closely with the other people involved, such as banks, surveyors, engineers and agents, and our resource management experts can help as required. We act on everything from straightforward boundary adjustments to major commercial developments.

The main options are a residents' society, a unit title development or land covenants, and each has pros and cons. Residents' societies are usually incorporated societies and need at least 10 members, so they may not suit smaller developments. Unit title developments are run by a body corporate under the Unit Titles Act 2010, while land covenants registered on each title can impose obligations without annual levies. Read more in Considerations for subdivision buyers.

Find out whether the property is bound by a residents' society, a unit title body corporate, land covenants or a combination of these, and what rules and levies come with them. Unit title properties have minimum disclosure requirements before you sign and before settlement, but with a residents' society you may need to review its rules yourself. We can tell you what rules and obligations you'll be bound by before you sign.

It depends on whether the buyer and seller are GST-registered and how the land is used. GST is not typically applicable to residential sales, but if both parties are GST-registered, the land is part of a taxable activity and it is not used as a private residence, the sale is typically zero-rated. Get legal and accounting advice before you sign, as a mistake in the agreement can lead to an unexpected GST bill. Read more in GST and land transactions.

Most cross-leases say alterations or new structures need the other owners' prior consent, but that consent cannot be unreasonably withheld. The Court of Appeal has confirmed the test: whether a reasonable lessor would withhold consent in the circumstances, and whether the lessor reasonably believed the work would injure its interests. Read more in Right of way easement – Cross lease disputes.