Key Steps for a Fee Simple Subdivision in New Zealand

A fee simple subdivision is the most common form of land subdivision in New Zealand, allowing individual ownership of new, separate titles. The process is governed by the Resource Management Act 1991 (RMA), the Land Transfer Act 2017, and local district plans. While it can be a complex and time-consuming process, early involvement of a lawyer can help navigate legal requirements, avoid delays, and ensure a smooth path to obtaining new titles.

Key Steps in a Fee Simple Subdivision

1. Resource Consent and Compliance with District Plan

Before subdividing land, the developer must obtain resource consent from the local territorial authority. The subdivision must comply with the relevant district plan, which sets out zoning requirements, minimum lot sizes, access, and infrastructure provisions. Some subdivisions may qualify as a permitted activity, but most require a formal application and assessment.

2. Surveying and Preparation of Subdivision Plan

A licensed cadastral surveyor must prepare a subdivision plan, detailing the new allotments, boundaries, accessways, and easements. The plan must comply with LINZ’s cadastral survey standards.

3. Engineering Approvals and Infrastructure Requirements

Subdivision approvals often include conditions requiring infrastructure upgrades such as roads, water supply, stormwater, and wastewater connections. Developers must provide engineering plans and may need to construct or contribute to public infrastructure. The council will inspect and approve these works before issuing final consent.

4. Section 223 and 224 Approvals

Once the subdivision conditions are met, the council must certify compliance under:

• Section 223 RMA: Confirms the approved survey plan aligns with the resource consent. The consent holder has five years from the date the subdivision consent was granted to obtain this certification unless a different timeframe is specified in the consent.
• Section 224(c) RMA: Confirms all consent conditions (such as infrastructure and contributions) are satisfied, allowing for the creation of new titles. The Section 224 certificate must be obtained before applying for new titles with LINZ.

Failure to meet the Section 223 deadline results in the resource consent lapsing, meaning the subdivision cannot proceed without applying for a new consent.

5. Lodgement with LINZ and Issuance of New Titles

The approved subdivision plan, along with legal documentation such as easements and covenants, is lodged with LINZ. Once registered, new fee simple titles are issued, allowing individual ownership and sale of the subdivided lots.

Expiry of Resource Consent and Key Timeframes Under the RMA

It is crucial to meet statutory timeframes to avoid delays or losing resource consent approval. Under the RMA:

• A subdivision resource consent generally lapses after five years if no substantial progress has been made. Some councils may specify a shorter lapse period in the consent conditions.
• Once Section 223 certification is obtained, the developer has three years to obtain Section 224(c) certification and complete all subdivision conditions.
• If Section 224(c) is not obtained within this timeframe, the subdivision consent will lapse, and the developer will need to apply for a new consent.

Understanding these deadlines is essential for developers to avoid costly delays and ensure the subdivision process is completed within the required timeframes.

The Importance of Early Legal Involvement

Engaging a lawyer early in the process can help:

• Review and negotiate subdivision conditions in the resource consent.
• Advise on land covenants, easements, and legal access requirements.
• Draft and register legal documents with LINZ.
• Ensure compliance with council and regulatory requirements.
• Monitor key deadlines under the RMA to prevent resource consent from lapsing.

By working with a lawyer from the outset, developers can avoid unexpected legal hurdles and streamline the process, ultimately saving time and costs.

Conclusion

A fee simple subdivision involves multiple regulatory approvals, legal considerations, and strict statutory timeframes under the RMA. Engaging a lawyer early in the process ensures developers are well-prepared to meet legal obligations, avoid lapsing deadlines, and successfully obtain new titles.

For expert legal advice or assistance with a fee simple subdivision, contact the team at DTI Lawyers.