A Step-by-Step Guide to Residential Subdivisions
24 September 2024

Subdividing a residential property can be quite complicated, and may take a lot of time. However, with thoughtful planning and the right help from professionals, it can also be a very rewarding project. This process involves breaking up a larger piece of land into smaller sections, which can then be sold or developed separately.


To make this journey easier for you, we’ve put together a detailed guide. This guide will walk you through each step of the subdivision process, helping you understand what to expect and how to prepare. With the right information and support, you can successfully navigate this process and achieve your goals.


1. Consult the Council

Before starting a subdivision project, consult with your local council. They can tell you if dividing your property is possible, and identify any restrictions or requirements that may apply. The council will explain zoning laws, minimum lot sizes, and other important regulations.


2. Check with your Lender

If you have a mortgage on your property, it’s crucial to check with your lender to ensure they consent to the subdivision. Subdividing a mortgaged property can affect your loan terms, and your lender might need to issue new mortgage documentation.


3. Engage a Surveying Company

You will need to hire a surveying company to draft subdivision plans and determine what utilities are required. The surveyor will prepare a resource consent application to present to the council for approval. They will also coordinate with utility companies to arrange any required physical works and easements. Easements may include rights of way, the right to convey electricity, telecommunications, water, sewage, and stormwater.


The surveyor will work closely with the council to obtain the necessary certifications and lodge the documentation with Land Information New Zealand (LINZ). Be prepared to pay a development levy to the council before final approval is granted. Once all work is completed and the council has signed off on the subdivision plan, the final plan – the ‘deposited plan’ is lodged with LINZ.


4. Involve Your Lawyer

Let your lawyer know about your plans to subdivide early on. They will work with the surveyor and your bank to get approval for the subdivision and manage any new mortgage paperwork.  Your solicitor will also advise on and prepare land covenants, which can impose restrictions on the subdivided properties. These covenants might limit the size or height of buildings, specify building materials, or regulate planting and property maintenance.


Your lawyer will prepare new title and easement documentation, and you will need to sign these documents to finalise the subdivision.



Subdivisions involve multiple parties and can be expensive. It’s wise to obtain cost estimates from the council, surveyor, and lawyer before committing to the process. Understanding the financial and time commitments involved will help you make informed decisions and ensure a smoother subdivision experience.

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