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Property LawLand Transfer Act 2017level4MEDIUM

A property owner wants to subdivide. What must be in place before new records of title can be created for the new lots?

Correct Answer

D) Subdivision consent and a survey plan approved by council and deposited by LINZ

Before new titles can be issued under the Land Transfer Act 2017, the subdivision must have resource consent (if required) and a survey plan that has been approved by Land Information New Zealand (LINZ). These ensure the subdivision meets legal and surveying standards.

Answer Options
A
Payment of all outstanding rates and proof of insurance for each new lot
B
A building consent and a code compliance certificate for each of the new lots
C
Written consent from every neighbour and a general approval letter from council
D
Subdivision consent and a survey plan approved by council and deposited by LINZ

Why This Is the Correct Answer

A subdivision needs resource (subdivision) consent under the Resource Management Act 1991, council approval of the survey plan and a certificate that conditions are met, and then deposit of the survey plan with LINZ. New records of title are created when the plan is deposited under the Land Transfer Act 2017.

Why the Other Options Are Wrong

Option A: Payment of all outstanding rates and proof of insurance for each new lot

Rates and insurance are not prerequisites to creating new titles; the planning and survey steps are.

Option B: A building consent and a code compliance certificate for each of the new lots

Building consents cover construction work. Subdivision titles depend on subdivision consent and the survey plan, not on buildings.

Option C: Written consent from every neighbour and a general approval letter from council

Neighbours' consent is needed only if the consent process requires it, and there is no 'general approval letter' step.

Deep Analysis of This Property Law Question

The question tests how planning law and the land register fit together. The council decides whether the subdivision may happen and certifies that conditions are met; LINZ checks the cadastral survey and deposits the plan; the register then creates a record of title for each new lot.

Background Knowledge for Property Law

Subdivision consent is granted under the Resource Management Act 1991. The council approves the survey plan and later certifies that consent conditions have been met, and the plan, prepared by a licensed cadastral surveyor under the Cadastral Survey Act 2002, is lodged with LINZ for approval as to survey and deposit. On deposit, LINZ creates new records of title under the Land Transfer Act 2017.

Memory Technique

Think of LINZ as the 'gateway keeper' for new titles. Before they'll open the gate to issue new titles, they need two keys: the 'R' key (Resource consent) and the 'S' key (Survey plan approval). No keys, no new titles through the LINZ gateway.

When you see subdivision questions about title creation, remember the LINZ gateway needs both the R and S keys. Look for the option that mentions both resource consent and survey plan approval by LINZ.

Exam Tip for Property Law

For subdivision questions, look for subdivision consent plus the survey plan being approved and deposited. Building consents, rates and neighbour letters are distractors.

Real World Application in Property Law

An owner splits a section into two lots. They obtain subdivision consent, a surveyor prepares the plan, the council approves it and certifies the conditions are met, and LINZ deposits the plan. Two new records of title are then issued, and each lot can be sold separately.

Common Mistakes to Avoid on Property Law Questions

  • β€’Confusing building consent requirements with subdivision requirements
  • β€’Thinking rates payment is required before title creation
  • β€’Assuming neighbour consent is always legally required for subdivision

Related Topics & Key Terms

Key Terms:

Land Transfer Act 2017LINZresource consentsurvey plansubdivision
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