Small residential subdivision (>3 lots) and Small rural subdivision (total area under 20 hectares)
The information contained on this page relates to small residential subdivisions (generally 3 or less lots) and small rural subdivisions. The information is split into the following topics:
Typical surveying and planning process and associated timeframes
There is a typical process a subdivision goes through in order to be completed. The surveying and planning aspects are outlined below. Those steps marked with an (*) will occur in every survey, the other steps may or may not occur and will largely depend on the property location and the Council.
- (*) Initial Investigations. Most people will investigate the possibilities of using their land. This usually involves, looking on the internet, talking to the Council, talking to a surveyor or a planner. Things you will want to know is what costs are expected (not just the surveyors costs), what the timeframes are likely to be.
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(*) Engage a surveyor or planner to undertake the preparation and lodgement of the resource consent application. The requirements of a council vary from district to district. Typically the following information is required:
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A scheme plan showing the proposed boundary arrangements including dimensions, anticipated easement, house location (if relevant).
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A current copy of the properties certificate of title, including any relevant covenants.
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A completed application form. This includes a summary of the application, address of applicant and address for service.
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Manukau City requires full engineering design to be undertaken prior to an application being made. This includes electricity and telecommunications.
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Deposit cheque for the Council to begin processing the application.
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Typically (and with the main exemption of Manukau City), an application can take 10 – 15 working days to be completed. The main exemptions to this are; Manukau City; and if affected persons approval is necessary.
- (*) Sending the application into the Council. Below is an indication of the process an application goes through when it is in the Council:
i) Application checked for completeness, and is either accepted or rejected.
ii) Details about the application and applicant are recorded on the Council's computer system.
iii) Application is given to a planner to take charge of while it goes through the system.
iv) Copies of proposal can be given to the Council, roading, sewerage, water and engineering, and landscape experts.
v) Decision is made on the application over whether further information is required.
vi) Decision is made on whether the application will be publicly or limited notified.
vii) Reports are prepared by all the relevant Council staff.
viii) Decision and conditions are prepared including advice notes.
ix) Some Councils allow consultants to look at the draft conditions to make comment.
x) Draft decision goes through a peer review process.
xi) Approval of decision is made by a person with delegated authority.
Under the Resource Management Act 1991, an advisory note is made that the decision should be made within 20 working days (longer if the application is notified or limited notified). A word of warning regarding the 20 working days, this time limit was tested in the Environment Court and was found to be advisory only and Council cannot be held to this time limit, although the majority will try their hardest.
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(*) Decision is made and the appeal or objection period begins. An objection to a condition or an appeal of a decision is to be made within 15 working days of the decision being received. Objections are made to the Council, while an appeal is lodged in the District Court to be heard in the Environment Court.
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After the appeal period the engineering design can be undertaken. Allow 20 working days.
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Construction undertaken. Allow 20 working days to have a contractor make the time to come onto site.
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(*) Undertake survey work. Allow 20 working days.
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(*) Send the plans into the Council for section 223 and 224c approval. Allow 20 working days.
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(*) Lodge the plans with Land Information New Zealand (LINZ) for survey approval. Allow 10 working days.
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(*) Solicitor lodges the legal documents creating the new titles with LINZ. Allow 20 working days.
In most situations, from inception to gaining individual titles, the process takes 105 working days, or 4 – 5 months. Steps 4 – 7 can also usually be overlapped, which provides considerable time savings.
Other steps above can be overlapped. However a word of warning is given that you can run the risk that if a step earlier in the process is not completed prior to a latter step being completed, and a change occurs that influences the completed latter step, then considerable additional costs may apply. For example, if survey approval was granted prior to section 223 and 224c approval, and the Council wants a change to the plan, a new set of plans are required.
Expected Costs - As of November 2009
Every survey has different costs associated with it, therefore the table below is provided to give you a guide only, I advise you seek specific estimates for your unique situation.
An example of a variable is the difference in costs between a notified and non-notified resource consent. A rough rule of thumb for development costs in most places in New Zealand is $35,000 per additional lot.
| Planning & Survey Costs (Urban subdivision) | Typically $2,500 - $4,500 (ex GST) per lot (cross leases and unit plans from about $1,500 per lot) |
| Planning & Survey Costs (Rural subdivision) | Typically $3,500 - $5,000 (ex GST) per lot |
| Council Fees | Range from $585 -$4,000 |
| Council section 223 and 224c approval fees | Range from $120 - $800 |
| LINZ Fees | around $250 - $500 |
| Telecom | $1,025 - $2,025 per additional lot |
| Electricity | allow $3,000 per additional lot |
| Water connection | allow $2,500 per additional lot |
| Sewerage connection | allow $3,000 per additional lot |
| Stormwater Disposal | allow $2,500 per additional lot |
| Right of way construction | allow $10,000 - $20,000 depending on length |
| Vehicle Crossing | allow $6,000 per access |
| Reserves Contribution | Sometimes nil, most times a few hundred dollars to a few thousand dollars, however the fee can be up to 7.5% of the value of the new lots. |
| Headwork fees | between $0 - $5,000 per additional lot |
| Real Estate Agent Fees | Depends on the deal with the agent. Up to 4.5% plus GST on each sale |
| Lawyers Fees |
allow $2,000 to get title for all lots allow $1,500 per sale |
| LINZ title generation fees | around $100 |
| Interest Costs on Borrowed Money |
At interest rates of 10% cost for interest only repayment is $100 per $1,000 per year. For example for a loan of $200,000 the interest only repayments are $20,000 per year or $384.61 per week. |
| Tax | Tax will be due on any profit made. |
| GST | If the size of the development is big enough then GST will be due on sales, but can be recouped any purchases |
| Accountant fees | Monthly accounting fees for GST and yearly tax returns are expected. |
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