How Can I Merge Two Land Titles Together
Merging, or consolidating, land titles is effectively the opposite of subdivision. You are taking two adjoining blocks of land and merging them into one, creating one single land title. But, how is this done, and do you need the services of a property conveyancer to do it?
If you own two adjoining blocks of land, you might be considering merging the land titles together. Title consolidation plans are relatively straightforward to complete when you use a reputable and local property conveyancer. However, you need to think carefully about whether or not consolidation is the best solution for you. While consolidating aims to create more rational land ownership, you need to evaluate your plans and ensure you understand your local property legislation. You also need to know What conveyancers do.
What does it mean to merge two land titles together?
While laws differ between each state and territory, merging property or consolidating titles generally means that you will thereby only have one set of council and water rates to pay. If the combined blocks from your primary residence, there are tax benefits to consolidating. With two titles, the one you live on would be considered your primary residence, and the other an investment. Should you choose to sell in the future, you would likely have to pay capital gains tax (CGT) of the second block. By merging them into one title, CGT would no longer be an issue. There are instances where properties purchased before 1985 are exempt from this condition, though you would need to enquire about this with your property conveyancer. You must know What does conveyancer do that is very important to understand
How can I merge two land titles together?
To consolidate two land titles into one, your property conveyancer will need to complete and lodge an Application for Consolidation, usually via your state or territory’s government’s online SPEAR system (Surveying and Planning through Electronic Applications and Referrals). They will also submit and process any supporting documents. There are so many things you must know What is conveyancing you must know.
Your property conveyancer will:
- Prepare your ‘Plan of Consolidation’;
- Prepare and submit your application for certification (aka Statement of Compliance) with your local council;
- Prepare your surveyor’s report;
- Have you sign and submit the council’s certified ‘Plan of Consolidation’ and ‘Surveyor’s Report’ on the SPEAR System. Your property conveyancer will then use these documents to lodge their application for consolidation at Land Use Victoria.
Although the process may seem complicated, a skilled property conveyancer can process the documents quite quickly. But before you begin the consolidation process, you need to consider carefully whether or not merging land titles would benefit your situation or whether it would actually end up causing you more of a hassle.
Should I merge two land titles together?
When considering whether to consolidate blocks, the answer is not always a simple ‘yes’. You need to consider your circumstances, motivations, and your local council’s legislation. Always speak with your property conveyancer about your situation – they will be able to help determine whether your plans for the blocks are suited to a consolidation. Every situation is entirely different, let’s look at a few examples. Do you know conveyancer fees if not ask for conveyancing company
Example 1 – Johanna and Isla own a house. Their neighbour is selling their property. Johanna and Isla are thinking of buying the neighbouring property so they can merge the titles together and sell them to a developer as one lot.
In this case, Johanna and Isla would need to think carefully about whether merging would benefit them. They would need to speak with their local council’s town planning department to find out the rules and regulations surrounding boundary changes in their area. A developer is more than likely to want to subdivide to build townhouses, and if they find that they are only able to subdivide back to the original two blocks, there is absolutely no benefit to merging the titles together for the sale. They would sell just as easily on separate titles. There are some conveyancer in Brisbane try property conveyancing Brisbane which is good company.
Example 2 – Pinying Fai lives next to a vacant lot. Fai wants to purchase the block and consolidate the blocks into a single large piece of private acreage.
If Fai buys the vacant lot next door, he would be wise to consolidate. That way, he would have no capital gains tax to worry about as the entire property would be his primary residence, rather than two separate properties where one would technically be considered an investment. He would also be consolidating his land taxes and water rates. You also need to contact property conveyancing Sydney. And get advice a quote from professional expert
Example 3 – Tara and Matt bought two side-by-side blocks of land in a commercial zone on the main road. They want to develop these blocks into four retail spaces.
Though they are planning to develop four separate retail spaces, it is unlikely that those spaces would each be placed in individual land titles. Rather, Tara and Matt’s best solution would be to merge the land titles onto one, and then proceed with development.
Are you thinking of merging two land titles together? Contact your local property conveyancer for a consultation to find out whether merging land titles is a good idea for your properties. Jim’s Property Conveyancing has offices in Melbourne and Brisbane and can provide you with comprehensive advice and assistance moving through your property transaction. Please get in touch with our friendly and experienced staff on 13 15 46. If you living in Melbourne and looking conveyancer try property conveyancing Melbourne.