Splitter or Subdivision – What’s The Difference?

with 5 Comments

Splitter Block or Subdivision??

Splitter Block or Subdivision - - what’s the difference??

(part 1) by Adrian Stagg

Lots of people looking in real estate agents windows or on the internet see this term "Splitter Block" being used but do not fully understand what it means. "Splitter Block" is a real estate term that can sometimes lead to confusion because, in truth, there is no official term or definition for a "Splitter Block".

Following is a rational explanation of the differences between splitters and subdivision  as we see them in simple terms to help people avoid confusion and (potentially expensive) mistakes.

In many of Brisbane’s older suburbs land was subdivided into 16 perch blocks (ie.404 m2) and homes were built sometimes on just one of them or sometimes across two, three or even four of them. In these latter cases these homes usually only have one title document but because they are built across several of these old allotments we say that they are on "Splitter Blocks" for the simple reason that the land under them has already been subdivided so if the house is moved on the block or removed altogether there is the possibility of ‘splitting’ the original title into two or more titles without the need to ‘subdivide’ it as there is already a subdivision in place. This is not solely restricted to Brisbane’s older suburbs and can apply (in most circumstances) to properties that have several subs in their titles. The real property description is usually a good pointer to this. E.g. Subs 90 – 92 on RP 134527, Parish of Canning, County of Stanley etc. etc. In this example there are 3 existing lots being lots 90, 91 & 92.

Splitter Block or Subdivision?

Now, having determined what a "Splitter Block" is the question then is can a similar block nearby be ‘subdivided’ in much the same way as the ‘Splitter’? The answer is maybe, and if so it will likely cost you a lot more money. Firstly the ability to subdivide is not a ‘given’ – it is subject to gaining approval from the local council - (they call it an ROL which stands for ‘Reconfiguration of Lot’). To do this a formal application needs to be made and a substantial (non-refundable) fee paid to Council. You will also need to put your case forward as to why your subdivision should be allowed under the Council’s town plan along with an accurate design layout as a bare minimum.

Minimum Requirements

Most councils require parcels of land to be of a certain size before they can be subdivided. In addition, there’ll sometimes be different minimum lot sizes for different areas. The difference in minimum lot size reflects the different zoning, character and appearance of each particular area. If the proposed subdivision doesn’t meet council’s minimum lot area, it may be possible to subdivide providing a good argument is put forward that the resultant lots are appropriate to the area and that any amenity impacts of the development on the lots have been considered.

Occasionally a council will require the application for subdivision to demonstrate the development on the new lot can be carried out without any amenity impacts to existing neighbours. In particular, councils will be concerned with any privacy, overshadowing, view loss and visual impacts that the new development will have on existing neighbours. The Brisbane City Town Plan now includes many Neighbourhood sub plans that also need to be complied with.

If the site is within a heritage conservation area (a DCP – demolition Control Precinct) or close to a heritage item, a council may be concerned that a proposed subdivision doesn’t fit in with the qualities of the area. Again, consistency between the existing lots and the proposed lots needs to be demonstrated.

Utilities will also need to be provided to new lots and this should be demonstrated at the development application stage.

And while these are not the only requirements or considerations you’d be wise to investigate whether or not the finished blocks can be serviced (feasibly) with those utilities such as roads, footpath, kerb and channel, sewerage, storm water, town water, power, telephones etc.. As Project Managers this is where we come in.

We’ll deal with these more thoroughly in part 2 of this blog including why buying a "Splitter Block" will save you at least $28,000 over a conventional subdivision or ROL.

5 Responses

  1. Jaya Kumar
    | Reply

    I find this website to be very informative to build my knowledge to invest in properties.

    4 Nov 2015, Jaya Kumar

  2. […] Subdivisions versus Splitter Blocks – there is a big difference – what is it […]

  3. Daniel Cameron
    | Reply

    $28000 is for Council Contribution because they regard the subdivision to bring more population into the area and added infrastructure costs, more rubbish bins to collect etc. Where as two titles or two lots already on one title does not require this $28000 fee. “Splitter Block” = no fee. Subdivision one title one lot into two separate lots = $28000 Contribution fee. It could make or break you end profit as a property investor so due diligence is important.

  4. Claudio
    | Reply

    Thank you for the explanation. This is the first info I read with regards to Splitter Block option.
    Thought my initial question here is not answered. That is: If a subdivision would give as end result 2 lots on two separate titles (i.e.: can have two different owners) and the Splitter will maintain only one title for both lots:
    1. How can you sell only one of them and not the other?
    2. Why wouldn’t everyone do it rather than go for subdivisions?
    3. Why people who are selling splittable block, don’t do it themselves to maximise their return?

    Cheers.

    Claudio

    • Adrian Stagg
      | Reply

      Hi Claudio,
      With Splitter blocks you need to approach the Titles Office to issue new titles for each existing lot. Usually Splitter blocks have improvements such as a house which need to be removed or demolished if they straddle the lot boundaries before new titles will be issued. You don’t have to get approval from the local Council to split the lots and therefore you are not subject to the normal requirements of an ROL [= reconfiguration of a lot] or Subdivision, so long as you are not seeking to change the boundaries or lot sizes. Most people would prefer a Splitter to having to do a Subdivision because it’s much simpler and cheaper but they are hard to find and frequently cost more money

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