The process of subdivision involves splitting a larger piece of land into smaller parcels of land or plots. If you are subdividing an existing plot in Western Australia, you will need to decide whether you do so using a built (or building) strata or a survey strata. 

The type of strata you choose has implications for how common areas and boundaries are treated. We’ll take you through built strata vs survey strata so you can decide which option is best for your build. 

What is Built Strata?

Built strata means that the boundaries of each parcel or block that you are subdividing into has to be marked or defined by the physical building it contains (potentially including balconies, courtyards and the like). The subdivision application and final strata plan for a built strata project can only be completed once all the buildings are finished. 

The built strata process in WA is often seen as the most streamlined method of subdividing your block, as everything is completed at once. This can, however, have implications for financing because strata completion depends on the end of construction. 

What is Survey Strata?

Survey strata was introduced so that land could be subdivided to create vacant lots without any buildings on them. It allows owners to submit plans for subdivision before buildings have been constructed. 

A key aspect of survey strata is that the land is parcelled out using survey marks, placed by a licensed land surveyor. In some ways, this makes them more similar to a freehold land parcel than other forms of strata. That said, common property such as shared access ways or reticulation can still exist and is often a significant part of the scheme. 

Built Strata to Survey Strata: Key differences

Despite both being strata schemes, built strata and survey strata can be quite different.

Subdivision timing

One of the main differences between built strata and survey strata is the timing of the subdivision. 

With built strata subdivision, your subdivisions will not be granted titles until the buildings they contain are created. No vacant lots are permitted within built or building strata. This can put pressure on construction times or make financial lenders apprehensive due to the timeframe involved before strata is granted and return on investment can begin. 

By contrast, the strata survey process can begin anytime during the subdivision and is often completed before any building work even begins. 

Flexibility

If you choose a built strata structure, the construction of your buildings must follow the plans to the letter. There’s no room for flexibility.

Once the process is completed and the new titles have been issued, any external changes to the titled buildings needs the consent of all the owners within the development.

Survey strata offers more flexibility and is overseen and approved by the Western Australian Planning Commission.

Cost implications

Built strata can be slightly more more cost effective way to structure the strata of your building. The downside is that because all building has to be completed before title is granted, financial lenders can be apprehensive about lending. 

All lot owners in a strata scheme are automatically members of the strata company. Strata levies or fees paid to this company for the management of maintenance, repairs and by-law enforcement are another cost consideration.

Consulting a land surveyor is required at a minimum, with more parties involved if a built strata is to be converted to a survey strata. It is, however, more appealing to financial institutions because financing a build on land that has already been titled carries less risk. This means any building work you begin before the survey strata process will be at your own cost. 

Approval requirements

Built strata requires more approvals because any external changes you make to your property, and even some internal ones, can be considered as changes to common property, which means the strata company will need to approve them. 

Survey strata offers home owners more control. They can make changes to properties if they want to as long as the alteration doesn’t affect common property, like shared driveways or similar. 

When it comes to services, the developer must make sure that each new vacant lot has all necessary services provided separately, which can involve additional costs. 

Changes to buildings within both built and survey strata will require local government approval. 

Which strata scheme do I need?

Which strata scheme you need depends what type of development you’re building. 

Built scheme developers are best for multi-level or complex developments, like apartment blocks or townhouses where units have shared structural components. 

Survey strata is best for developments that involve duplexes or triplexes, with properties being created side-by-side.

Converting Built Strata to Survey Strata

Converting built strata to survey strata can be done. It requires the cooperation of all the parties involved, as well as a licensed surveyor and typically a lawyer and town planner.

When and why conversions happen

The appeal of converting built strata to survey strata is greater owner autonomy. This not only potentially increases the property value, but also provides the individual homeowners with the chance to renovate or extend their homes. 

There’s also an increasing push to convert complex single-tier pre-1998 schemes to survey strata schemes. Survey strata is a relatively recent development, so many of the older schemes contain outdated common property arrangements. These arrangements have historically led to confusion and dispute. Consult the Strata Titles Act 1985 (amended) for more information on pre-1998 properties.

Process requirements

The first thing required to convert built strata to survey strata is the unanimous agreement of every lot owner and every registered interest holder (such as mortgage lenders) in the existing strata agreement. You cannot proceed unless everyone agrees. 

You then need to have the property surveyed by a licensed surveyor who will create a new survey strata plan that complies with the zoning, plot ratio and setbacks as stipulated by your local council. 

Each plot must have independent service connections to the street, with no lot’s service running through another’s. Once easements and services have been agreed, a licensed valuer has to certify a new schedule of entitlements for each unit. 

Once these consents have been approved and the survey is complete, the new plan and supporting documents need to be lodged with Landgate, who register the new plans and issue new titles for each lot. 

Professional assistance needed

As you can see, this complex process has many moving parts. If you decide to pursue this route, it’s vital that you seek help from the right professionals to make you complete all the required paperwork and get the necessary plans and approvals before you proceed. 

Let us help you find the right option for your project

Novus Projects is an experienced commercial property developer, with over 30 years of industry experience. We have a nuanced understanding of all of the available strata offerings and can help you choose the right strata for your project, then guide you through the process.

We have a team of experts that can be as involved as you want us to be, guiding you through the process from the outset. We can also put you in touch with or help you manage relationships with the required property lawyers, licensed surveyors and valuers, as and when your development requires them. 

Contact us today to discuss your next project and see how we can help.