When subdividing is not approved....

[lewisg]

Hi folks. First post, so hopefully in the right place.

OK. So we are thinking of looking for a property to purchase, subdivide and then build our own home on the new section; then sell the existing house. This is something new for us so any suggestions or estimates gratefully accepted.

We would probably use one of the subdivision companies that provide a "is your property sub-dividable?" report.

A concern at this stage is if the subdivision is declined. Could we then just build anyway; say a couple of consented units and rent them out; or sell as a whole.

[John the builder]

make condition of purchase a certificate of compliance (CoC)from council that you can subdivide

I dont think it is a question of if you can as this will be self evident it is more the hoops you have to jump through.

[Rosco]

Hi lewisg,

Also consider tax! A starting point with a subdivision and sale, is that any gains will be taxable. You might get an exemption, but it would be worth going through this with a property accountant.

Ross

[lewisg]

Thanks John.
Didn't realise there was a CoC available; that would be the way to go!
I had an idea I would get a checklist from the appropriate council and tick the items off before purchase.

[the_greenhorn]

Thanks John.
Didn't realise there was a CoC available; that would be the way to go!
I had an idea I would get a checklist from the appropriate council and tick the items off before purchase.

You can't get a CoC for a subdivision.

[John the builder]

You can't get a CoC for a subdivision.

why not? are you confusing a COA or CCC COC is planning approval assessment and simply says it can be done?

[lewisg]

Thanks Ross.

A specialist property accountant I had thought about. I've never had a problem paying tax, but wouldn't want to pay tax if I didn't need to.

It's turning out a longer journey though; our house is on the market but having trouble getting offers; 15 mins from Wgtn cbd!

[the_greenhorn]

why not? are you confusing a COA or CCC COC is planning approval assessment and simply says it can be done?

Not confusing anything and happy to be proved wrong here but I haven’t come across a district plan where a subdivision is a permitted activity which is what the CoC needs. In my experience they’re at least a controlled activity

[John the builder]

Greenhorn;

139 Consent authorities and Environmental Protection Authority to issue certificates
of compliance
(1) This section applies if an activity could be done lawfully in a particular location
without a resource consent.
(2) A person may request the consent authority to issue a certificate of compliance.
(3) A certificate states that the activity can be done lawfully in a particular location
without a resource consent.
(4) The authority may require the person to provide further information if the authority
considers that the information is necessary for the purpose of applying
subsection (5).
(5) The authority must issue the certificate if—
(a) the activity can be done lawfully in the particular location without a resource
consent; and
(b) the person pays the appropriate administrative charge.
(6) The authority must issue the certificate within 20 working days of the later of
the following:
(a) the date on which it received the request:
(b) the date on which it received the further information under subsection
(4).
(7) The certificate issued to the person must—
(a) describe the activity and the location; and
(b) state that the activity can be done lawfully in the particular location
without a resource consent as at the date on which the authority received
the request.
( The authority must not issue a certificate if—
(a) the request for a certificate is made after a proposed plan is notified; and
(b) the activity could not be done lawfully in the particular location without
a resource consent under the proposed plan.
(9) Sections 357A and 357C to 358 apply to a request for a certificate.
(10) A certificate is treated as if it were an appropriate resource consent that—
Reprinted as at
23 September 2015 Resource Management Act 1991 Part 6 s 139
249
(a) contains the conditions specified in an applicable national environmental
standard; and
(b) contains the conditions specified in an applicable plan.
(11) A certificate treated as a resource consent is subject to sections 10, 10A, and
20A(2).
(12) A certificate treated as a resource consent is subject to this Act as if it were a
resource consent, except that the only sections in this Part that apply to it are
sections 120, 121, 122, 125, 134, 135, 136, and 137.
(13) If an activity relates to a matter that is or is part of a proposal of national significance
for which a direction has been made under section 142(2) or
147(1)(a) or (b), a person may request a certificate from the Environmental
Protection Authority and this section applies with the following modifications:
(a) a reference to a consent authority is to be treated as a reference to the
EPA; and
(b) subsection (5)(b) does not apply; and
(c) the EPA may recover its actual and reasonable costs of dealing with the
request from the person making the request.
(14) In this section, activity includes a particular proposal.


'activity' isnt defined? but a sudivion is permiiede but there ais arocess to be followed The CoC just says it is possible (or not?)

am I missing something?

[the_greenhorn]

Greenhorn;

139 Consent authorities and Environmental Protection Authority to issue certificates
of compliance
(1) This section applies if an activity could be done lawfully in a particular location
without a resource consent.
(2) A person may request the consent authority to issue a certificate of compliance.
(3) A certificate states that the activity can be done lawfully in a particular location
without a resource consent.
(4) The authority may require the person to provide further information if the authority
considers that the information is necessary for the purpose of applying
subsection (5).
(5) The authority must issue the certificate if—
(a) the activity can be done lawfully in the particular location without a resource
consent; and
(b) the person pays the appropriate administrative charge.
(6) The authority must issue the certificate within 20 working days of the later of
the following:
(a) the date on which it received the request:
(b) the date on which it received the further information under subsection
(4).
(7) The certificate issued to the person must—
(a) describe the activity and the location; and
(b) state that the activity can be done lawfully in the particular location
without a resource consent as at the date on which the authority received
the request.
( The authority must not issue a certificate if—
(a) the request for a certificate is made after a proposed plan is notified; and
(b) the activity could not be done lawfully in the particular location without
a resource consent under the proposed plan.
(9) Sections 357A and 357C to 358 apply to a request for a certificate.
(10) A certificate is treated as if it were an appropriate resource consent that—
Reprinted as at
23 September 2015 Resource Management Act 1991 Part 6 s 139
249
(a) contains the conditions specified in an applicable national environmental
standard; and
(b) contains the conditions specified in an applicable plan.
(11) A certificate treated as a resource consent is subject to sections 10, 10A, and
20A(2).
(12) A certificate treated as a resource consent is subject to this Act as if it were a
resource consent, except that the only sections in this Part that apply to it are
sections 120, 121, 122, 125, 134, 135, 136, and 137.
(13) If an activity relates to a matter that is or is part of a proposal of national significance
for which a direction has been made under section 142(2) or
147(1)(a) or (b), a person may request a certificate from the Environmental
Protection Authority and this section applies with the following modifications:
(a) a reference to a consent authority is to be treated as a reference to the
EPA; and
(b) subsection (5)(b) does not apply; and
(c) the EPA may recover its actual and reasonable costs of dealing with the
request from the person making the request.
(14) In this section, activity includes a particular proposal.


'activity' isnt defined? but a sudivion is permiiede but there ais arocess to be followed The CoC just says it is possible (or not?)

am I missing something?

Probably easier to understand via the Quality Planning website. Essentially if an activity (in this case subdivision) can be undertaken without the requirement of a resource consent under the relevant plan then a CoC can be applied for to protect the property against any potential plan changes. What I said earlier and probably could've elaborated on and this is the key here is that there are no district plans I know of where subdivision is a permitted activity and thus a CoC can't be applied for. Haven't worked with all the plans around NZ but a fair few and haven't come across a subdivision being a permitted activity.