Boundary Realignment – Not a simple matter

Most neighbours who seek to change the position of their property boundaries underestimate the complexity of the process and the delays often experienced in dealing with their mortgagees and other secured creditors.

Boundary realignment is essentially a re-subdivision of the properties involved and proceeds in the same way as a traditional subdivision of property.

The parties should firstly properly document the agreement and include a full Contract for Sale of Land in relation to the properly changing hands.

Normally the proposed plan of subdivision is first approved by the Local Council and then signed off by all the registered proprietors and their mortgagees and is then lodged for registration at the Lands Dept together with the Certificates of Title of each property and any other necessary related documents (these typically include land transfers, discharges of mortgage, mortgagee consents and new mortgages).

Without the simultaneous registration of such “related documents” the newly issued Titles will note the entitlement of the registered proprietors and their mortgagees of the land gained. This is commonly referred to as a “dual entitlement” and as a result the mortgagee’s security may well be unenforceable if the subdivision is registered without the related documents being registered at the same time.

Accordingly the role of any mortgagees is significant prior to the subdivision being registered and they will normally request new mortgages be entered into and control of all related documents and the registration process.