Banking on Subdivision Consent

Banking on Subdivision Consent

With things on the farm well under control, Freddy was enjoying a well-earned cup of tea and muffin in front of the fire.

Things were progressing well with his subdivision across the road.  He had managed to sell two of the sections, although the Agreements for Sale and Purchase had a date by which the new titles had to be issued.

It seemed to be taking a long time for the new titles to be issued, so he decided to give Pebbles a call for an update.

"So, how is everything going with my subdivision?" he asked.

"Well," says Pebbles. "We have received a copy of the resource consent from the council approving the subdivision and setting out the new services that need to be put in place and the civil works that need to be done for the vehicle crossings."

"That's great," says Freddy. "I was just speaking to the contractor last week about that. He can start as soon as I give him the OK.  What about the surveyor?  What does he need to do?"


"The surveyor will finalise the survey plan and any documents to submit to the council so it can then sign off the relevant certificates under the Resource Management Act.  He will also submit the survey plan to Land Information New Zealand (LINZ) for its approval."

"Will I need to come in and sign anything?" Freddy asks.

"Yes, I will give you a call once we get notification that the survey plan has been approved by LINZ.

“We can then finalise all the documents for you to sign, such as the order for new computer register, which allocates the new Certificate of Title references, together with the easements and the land covenant dealing with the type of houses you said that you were comfortable being built and that are included in the Agreements for Sale and Purchase.  We also need to get your bank's consent," says Pebbles.

"The bank!" Freddy exclaims. "Why does it need to know what I am doing with my land?"

"Well, because the bank has a registered first mortgage over your land, you need to consult with it and get its consent when doing anything that affects the current Certificate of Title to the land.  Once you get that, we then do a final check and lodge the documents with LINZ.  It checks all the documents and then authorises the deposit of the survey plan and the issue of new Certificates of Title.

"Once the new Certificates of Title have been issued, we'll notify your purchasers under the Agreements for Sale and Purchase and complete settlement."

"There's a lot more to this subdivision stuff than meets the eye," says Freddy. "Oh well, Pebbles, it sounds like you have everything under control," he says with a smile and toasty toes

The content of this document is necessarily general and readers should seek specific advice on particular matters and not rely solely on this document. 

If you would like more information on any of the topics in this document, please contact your usual Auld Brewer Mazengarb & McEwen adviser.

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