Town Planning Permits (tpp) & Sell - Medium Profit Town Planning Only
This type of structure allows the owner to sell off the back part of the block by
providing certainty to the purchaser by having obtained a Town Planning Permit. This can be done on a lower budget and be a good way to sell the back yard. The Town Planning Permit will allow the purchaser to start the project immediately after gaining a subdivision approval (SA) without any uncertainties of objections from Council or Locals.
The vendor and purchaser can then enter into a contract of Sale subject to the granting of a Subdivision Permit and Connections. These costs are shared between both parties.
Although this is one way of selling part of your property it is not the most profitable. Before the purchaser can build the new dwelling, they will need to apply for a Subdivision Permit and Connections. Im most case the land is sold under market priceless as the purchase will have to pay for the connections and services.
There is also quite a bit of work needed from a solicitor to prepare the section 172 agreement and a license agreement prior to the Sale. For these reasons most sales are limited and negotiations on the Subdivision costs and allocation become too much for both parties.
What's involved?
1.A site analyses for levels and neighbors buildings and a proposed subdivision plan for the new lot.
2.New dwelling is designed
3.Town Planning Permit application to Council
4.On or prior to approval, property can be sold with existing dwelling where applicable or as a part u under Section 172(see FAQs for details) and a license agreement along with contract of sale.
5.The new purchaser will obtain the necessary Subdivision Approvals and finish the Subdivision with the vendor splitting any further expense
A contract of sale along with a proposed subdivision plan is required to complete the sale , in most case a licence agreement will also be drawn up until the subdivision is complete and tittles are issued.