The transfer of a freehold commercial premises is very similar to a transfer of a residential premises. Where commercial conveyancing differs is that the conveyancer must have particular regard to GST clauses in the contract, and have a good understanding of retail leases to ensure that any lease the sale may be subject to was prepared correctly with guarantees and disclosure statements as applicable.
Properties that are used to carry on a business and derive an income such as a retail shop, factory, or industrial warehouse are generally considered to be commercial properties. However, a mixed-use property such a house which as been used as a medical practice or accountants office may also be considered commercial and thus have GST implications that require special consideration.
If you operate a self-managed super fund, you can invest your retirement savings in property provided the property is acquired for the sole purpose of providing retirement benefits to fund members. If you need to borrow money to fund the purchase, you will also need to comply with the Superannuation Industry (Supervision) Act 1993 rules on limited recourse borrowing arrangements.
The risks associated with undertaking your own conveyancing as a seller is that if you omit or overlook any document or disclosure that is required to given the purchaser may avoid the contract and you may still be liable to pay the estate agent’s commission.
The cost to subdivide land will vary greatly depending on whether you subdividing into two (2) or more lots. For a two (2) lot subdivision, you can expect to pay anywhere between $15,000 – $20,000 which includes surveying costs of about $5,500, permit fees of $2,000, utility connection fees of $6,000, legal fees of $1,000 and registration fees of $1,500.
Both the buyer and seller will need to engage their own conveyancer to represent their respective interests in the transfer, and each party will be responsible for their conveyancer’s costs.
Once you have identified that you can and want to subdivide your land, there are four (4) main stages to follow in the subdivision process:
Whether or not you can subdivide your land will depend on the planning zones and overlays that effect the land. Whilst it is commonly believed a lot must be at least 600m2 to be granted a planning permit to subdivide, the specific requirements vary depending on where the land is situated. To identify the zoning and planning schedules that relate to your land, you can search your address at www.planning.vic.gov.au
