Can I Sell Dual Occupancy Titles Separately?
If you have two properties on one title, as a dual occupancy, is it possible to sell them separately? What is the best option when it comes to selling dual occupancy properties?
Australian property owners can sometimes maximise the value of their land by creating a dual occupancy title. This means that there is more than one property on a single block of land. But, what does this mean for you as the property owner and how can you sell these properties moving forward?
What is a dual occupancy title?
A dual occupancy title technically refers to two properties on one block of land, although, in fact, it could mean three, four or more units on built on one block. How many dwellings you decide to build on your property depends on the size of the land. A dual occupancy title is a single title for a block of land that contains more than one dwelling. This is different to a subdivision because the dwellings are on the same title, whereas in the case of a subdivision, separate land titles are created.
Can I sell dual occupancy titles separately?
Yes, but you need to subdivide the land first to create separate titles. You can’t sell two properties separately if they’re on the same title.
How can I turn my property title into a dual occupancy title?
Firstly, you must either own or purchase land that is suitable for dual occupancy. If you are buying a property for that purpose, always check with your local council about subdivision legislation to ensure your plans are more likely to be approved. You’ll also want to have the sale documents examined by a property conveyancer to ensure there are no boundary, encroachment or easement issues listed on the title that will prevent you from developing the land.
A property conveyancer will then be able to assist you with the legal requirements for creating a dual occupancy title and advise you of your options if you’re interested in subdividing the property to create two (or more) titles.
Selling subdivided land
You may not have to wait for the construction of a second dwelling to be complete before selling your investment property. If there are keen buyers out there, you could choose to sell off the plan before the construction is complete).
Pros of dual occupancy
Dual occupancy is an effective way to maximise land value if you’re intending to build the second residence for profit to rent or sell at a later time.
Dual occupancy can also be a great solution to enable a relative to live on your property but in a separate residence, as in the case of a “granny flat”.
Cons of dual occupancy
The biggest negative of a dual occupancy residence is that, until it is formally subdivided, you cannot sell the properties separately. It’s also worth noting that dual occupancy titles can be difficult when it comes to bank valuations.
Dual occupancy projects have the potential for significant profits. As long as you do your homework first to ensure it is possible to build two or more properties on your block, property owners usually find that subdividing is a great way to make the most of their investment.
Are you considering subdividing a property or creating a dual occupancy title? For more information about Jim’s Property Conveyancing Melbourne, or Property Conveyancing Brisbane. Or for expert advice on property conveyancing services in Australia, please contact our friendly and experienced staff on 13 15 46.
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