Property Development
Property development is generally a high-risk investment activity that involves the improvement of land for commercially driven purposes and can range from small subdivisions to multi-use residential and retail high-rise buildings.
Property development requires the navigation of an abundance of rules, regulations, standards and practices to ensure compliance, mitigate risk and personal liability and enhance the potential for profit.
The Northern Territory Planning Scheme (NTPS) manages the use and development of land in the Northern Territory.
The Northern Territory Planning Scheme
The NTPS is a statutory document that sets out planning objectives, zone tables for zoned land, area plans and detailed guidelines for land use planning and development within the Northern Territory. The development and use of land can only be conducted in the ways set out under the NTPS.
There are different types of zones which set out the controls for use and development of the land, such as:
- restrictions on subdividing land;
- land zoned as residential should be used for primarily residential purposes;
- for land not zoned, the NTPS only applies to subdivision of land and clearing native vegetation for over 1 hectare of land.
Zone maps and tables can be found on the Department of Infrastructure and Logistics website.
Applying for subdivision of land in the Northern Territory
If you are interested in subdividing and developing land, you will need to apply for either a development or exceptional development permit through the Development Applications Online (DAO) website. You should also become familiar with the subdivision development guidelines.
The development guidelines provide information on:
- required engineering and construction standards; and
- the process from preliminary design of the development, construction and handover of developed land.
You can find the subdivision development guidelines on the DAO website. The guidelines can be overwhelming to grasp if you are not familiar with them, so it is important to seek legal advice if you have any doubts.
When applying for a development permit, you must include:
- your and any other beneficiary’s contact details;
- an owner’s authorisation if you are not the sole property owner;
- details of the proposed development and explain why you are requesting a development permit;
- site, subdivision, floor, layout plans and elevations and sections;
- details of what development will look like, and
- an assessment of the proposed development’s merits, how it will comply with the planning scheme, influence the amenity of the area, and any other relevant matters.
You can also speak to a planner from the DAS if you would like advice on:
- your assessment category;
- what things you will need to include in your application;
- what to expect throughout the assessment process;
- fees and advertising requirements;
- other supporting information you may need to include with your application.
Security and finance
For most developments, the developer will usually obtain construction finance to fund the construction of the development. The development agreement should specifically detail all security which may be necessary for development to commence and set out which party will be responsible for obtaining security.
Most complex developments need funding which usually requires the granting of a mortgage and / or other securities to the lending institution.
If you need any assistance, contact us at [email protected] or call (08) 8947 4400 for expert legal advice.