We attended a seminar the other day where there was an in-depth discussion about survey plans and the way Body Corporate schemes come to be created.
We came away with an understanding of why we often come across schemes with only two lots where it would been much simpler for the lot owners if the two lots had been created as independent titles.
One part of the answer is that a development application follows a different path and is subject to different impact assessment when an existing lot is subdivided into two lots compared to undertaking a ‘material change of use’ of the lot and then creating two duplexes under a Body Corporate scheme. The other part relates to the creation of utility infrastructure above and below the ground to support the dwellings. In both cases, these issues can impact timing, cost, bureaucratic process and ultimate sale price. Developers weigh these issues up together and will generally make a decision that is in their best interest but not necessarily in the best interest of the ultimate lot owners.