Requirements To Sell a Section

Forums › Home Workshop DIY › Requirements To Sell a Section

outdoorsnz

694 posts

Ultimate Geek
+1 received by user: 303

ID Verified

#289785 29-Sep-2021 09:29

I am looking at a few property options just now and need a few questions answered for budgets / due diligence.

Lets say I had a block of land to sell in a typical suburb of NZ. It has a clear title and could be sold as is. Not a sub division.

Do I need to provide power and water to the boundary? Is this a council requirement? Water is straight forward. But power could get expensive depending on where the pole or underground services are.

It also has a garage and car port, which is part of the next door property. I've been told this also complicates matters (sits on section to be sold). I could also bring water and power via other property, but this would add legal (easements) and survey costs.

Thanks

doublek69

36 posts

Geek
+1 received by user: 16

#2786093 29-Sep-2021 09:45

My understanding that title is required, but if you sell privately you will need to disclose these facts i.e. services are/aren't to boundary. Property sold subject to demolition/removal of structures currently on the property.

So if you have a separate title already, that would mean council have satisfied their requirements around separation and creation of a separate parcel.

Not investing in the neccessary due diligence around what is involved/cost to get these factors sorted will mean that you are putting this onto any prospective buyers. This will mean two things - they will factor that cost into what they offer and it will preclude some people from going any further as they have to incur cost to understand overall cost, but no guarantee of buying.

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#2786096 29-Sep-2021 09:50

"It also has a garage and car port, which is part of the next door property. I've been told this also complicates matters (sits on section to be sold)"

Whoop whoop, Houston we could have a problem,

They are either part of your property or not,

If there are owned by another party, then they either need to register some form of interest in the land they are on (easement etc) or you need to remove this land from your title before sale..

Or they need to be demolished...

Services to the property are not required for sale, (but without them it will be less attractive to buyers who will likely pay less)

outdoorsnz

694 posts

Ultimate Geek
+1 received by user: 303

ID Verified

#2786106 29-Sep-2021 10:28

doublek69:

My understanding that title is required, but if you sell privately you will need to disclose these facts i.e. services are/aren't to boundary. Property sold subject to demolition/removal of structures currently on the property.

So if you have a separate title already, that would mean council have satisfied their requirements around separation and creation of a separate parcel.

Not investing in the neccessary due diligence around what is involved/cost to get these factors sorted will mean that you are putting this onto any prospective buyers. This will mean two things - they will factor that cost into what they offer and it will preclude some people from going any further as they have to incur cost to understand overall cost, but no guarantee of buying.

Thanks @doublek69. That helps me quite a bit to factor in due diligence costs. Having recently helped with a property build, I know these things not done are a real hassle and cost!

outdoorsnz

694 posts

Ultimate Geek
+1 received by user: 303

ID Verified

#2786107 29-Sep-2021 10:31

wellygary:

"It also has a garage and car port, which is part of the next door property. I've been told this also complicates matters (sits on section to be sold)"

Whoop whoop, Houston we could have a problem,

They are either part of your property or not,

If there are owned by another party, then they either need to register some form of interest in the land they are on (easement etc) or you need to remove this land from your title before sale..

Or they need to be demolished...

Services to the property are not required for sale, (but without them it will be less attractive to buyers who will likely pay less)

Clearly garage etc would either be part of the sale ( I would currently own) or removed / shifted. Good to know services are not required and that helps me do further due diligence :-)

raytaylor

4076 posts

Uber Geek
+1 received by user: 1296

Trusted

#2787468 1-Oct-2021 07:50

Its in most district plans that you need to get a certificate from the three utilities (3waters/council, power, telco) to say that services are installed to the boundary, when you do a subdivision.

However if the subdivision is already done then you dont need to do that.

But it would be a requirement to disclose the status of those things to the buyer as not having those services to the boundary would be out-of-the-norm and any reasonable buyer would expect those services to be there.

Ray Taylor

There is no place like localhost

Spreadsheet for Comparing Electricity Plans Here