Title Consolidation

What is title consolidation?

Title consolidation refers to the merging of two or more separate titles associated with contiguous or adjacent parcels of land. It is usually a process undertaken to assist in property management as it reduces the number of titles to be dealt with in a given transaction involving the land associated with the separate titles. For example, if you own two adjacent lots, and wish to develop them as one parcel, it is usually easier to deal with one title rather than two, for planning, building and administrative purposes. Additionally, consolidating titles may enhance land value by presenting them as one cohesive unit.

What is the process involved in consolidating titles?

To consolidate multiple titles, the registered proprietor(s) must lodge an application with Land Use Victoria. This involves a number of steps:

1.      Determining eligibility

To be eligible to consolidate titles, the parcels associated with the titles must be owned by the same person or entity (to ensure that the applicant has legal authority to merge the titles) and generally needs to be contiguous, meaning that they should be adjacent, share a common boundary, or a mathematical link through chain of title. This means that the parcels of land must be physically linked.

There may also be planning requirements which restrict or affect the consolidation of titles and any easements or covenants on the titles being consolidated must carefully be considered.

2.      Preparing the application and paying the application fees

Council

An application to Council is required to have the plan certified prior to lodging the plan at Land Use Victoria (known as the Land Titles Office). This is known as a procedural plan and should take Council 14 days to certify the plan. Generally procedural plans should not be referred to any service authorities.

Land Use Victoria

An application to Land Use Victoria must include an application form, the titles being consolidated, a licensed surveyor’s report and a plan of survey if the consolidation is survey-based. See our article here about the differences between non-survey and survey based consolidations.

Land Use Victoria requires an application fee to be paid upon lodgement of the application. As at January 2025, this fee is $683.90. Note that this is in addition to any fees payable to your land surveyor for preparing and lodging the application, as well as any fees payable for legal or financial advice associated with the consolidation.

3.      Assessment by Land Use Victoria

Once the application has been submitted, Land Use Victoria will assess the application to ensure it meets all legal and regulatory requirements. This generally involves a thorough review of all property boundaries and an assessment of the application against eligibility criteria. In some circumstances, Land Use Victoria may require a survey to be undertaken to support the application.

4.      Issuing new title

Once an application has been approved, Land Use Victoria will cancel the original titles and issue a new Certificate of Title reflecting the consolidation.

What are the pros and cons of consolidating titles?

Advantages of consolidating titles include:

1. Simplified ownership – reducing the number of titles can make property management easier for registered proprietors.

2. Increased property value – a consolidated title can enhance the marketability and overall value of the property, particularly if it appears as a unified parcel.

3. Easier transactions – future dealings with the parcels such as transfers, leases or developments are simplified as there is only one title to deal with.

4. More efficient administration – having one title compared with two, three or more can mean less paperwork and fewer administrative burdens and costs.

5. Enhanced potential for development – consolidating titles can make it easier to apply for permits for development or subdivision down the track.

6. Cost savings – over time, managing one title may lead to lower administrative and legal costs compared to handling multiple titles.

7. Clear ownership rights – consolidation helps clarify ownership rights and boundaries, reducing the potential for disputes with neighbours or other stakeholders.

8. Tax implications – depending on various factors, consolidating titles could have favourable tax implications, although this can vary, and professional financial/accounting advice must be sought.

Disadvantages of consolidating titles:

1. Initial costs – the application process can be costly upfront when application fees and professional fees are taken into consideration, however, these are usually outweighed by the benefits once the application is accepted and new title is issued.

2. Planning implications – consolidating titles without first seeking adequate professional advice can have unforeseen consequences such as triggering planning or zoning issues, which require further time and money to overcome.

3. Time – the consolidation process, whilst mostly straightforward, can be time-consuming, especially if there are complications associated with the parcels of land being consolidated and how they ‘fit’ together. The process can generally take anywhere from a few weeks to several months, however, an experienced licensed land surveyor can assist you in streamlining the overall time frame by providing professional advice and preparing the application in an ideal way.

Concluding comments

When considering consolidation of titles, it is vital to seek professional advice from a licensed land surveyor who will be able to guide you step by step through the process. In addition to this is it is also recommended you seek professional legal, financial and possibly planning advice, as the process can be very technical and have unforeseen implications for zoning, planning permissions, easements and taxation.

Notwithstanding, consolidating titles can have considerable benefits for landowners and the benefits usually outweigh any disadvantages.

At Humphries Land Surveying, we are able to draw on our extensive experience in title consolidations to provide you with tailored advice, and assist you in navigating the process smoothly and successfully.