When land is subdivided, a fresh certificate of title is issued for each new land lot
A worked RES examination question on title types and subdivision, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
An owner subdivides a single plot of land he holds into four smaller plots, so that four terrace houses can be built on them and sold to four separate buyers. He has heard various things about what title the new plots will carry once the subdivision is registered — some say a strata title because there will be several houses, others a single shared title. He wants to know, before he markets them, exactly what each of the four buyers will end up holding over the house he purchases.
Which statement is correct?
The answer, and why
Answer: A
The rule. When land is subdivided, a fresh certificate of title is issued for each new land lot. Subdivision of landed plots produces certificates of title, not strata titles.
Why A is correct. Each of the four houses takes its own fresh certificate of title.
The other options.
- B issues strata titles, which belong to subdivided buildings, not subdivided land.
- C keeps one shared title.
- D reverts the land to the State.
Exam note. Subdividing *land* gives certificates of title; subdividing a *building* into units gives strata titles. Do not cross the two.
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