Land is not normally sold unless it is surplus to requirements or the purchaser has a particular requirement.

Definition

In the advice the term sale includes the sale exchange transfer and use of Council land whether or not the title transfers to a purchaser or consideration or compensation is paid.

Who do I contact?

If the land is being marketed by an agent potential purchasers contact the agent concerned.

If you are interested in land owned by the Council the primary point of contact for all Council land transactions is the Property and Leasing Coordinator – phone 03 5272 4344.

At your initial point of contact you will be advised of the likelihood or otherwise of the land in which you are interested being able to be sold the process and time required and the likely costs you will have to meet. Estimates of the land value generally cannot be provided before the valuation is obtained.

Most transaction enquiries relate to minor land sales where an owner wants to purchase an adjoining lane or piece of Council land. Initial contact is made with the Property and Leasing Coordinator by phone at which time a desktop review can occur of the relevant land parcel prior to detailed discussion. Only a small number of enquiries for land sales proceed to settlement.

Types of property transactions

Property transactions can include the sale of freehold land or an interest in land including easements and reserves for services or rights of way.

When purchasers seek an easement drainage reserve or road reserve over Council land to serve their own development projects once created the title to the land remains in Council’s ownership. Purchasers are required to pay for such encumbrances due to the restriction on use and development that the encumbrance introduces on the Council’s land.  

The Council has the power to discontinue unused Municipal (Council owned) road reserves and sell the land usually to an adjoining owner. If the road is Crown land the Council only manages the discontinuance process and the land is sold by the State Government.

How is land sold?

Where land is surplus to requirements it is normally sold on the market through an agent or a public process run by Council. Whether sold thorough an agent or directly by the Council a marketing plan will be implemented.

Sometimes Council sells land directly to a party where there is no other likely purchaser the purchaser is a public agency or where there is a desired outcome to satisfy development social or employment objectives.

What is Council’s policy on property transactions?

When selling land the Council must comply with s114 of the Local Government Act 2020 which specifies the community engagement and valuation requirements.

The circumstances for the potential sale of any land are unique to that site and the land is first considered if it may be surplus to the City.  Undertaking community engagement assists with this.

Public notification and consultation requirements

Prior to selling land Council undertakes community engagement and most often will invite feedback submissions. 

Before proceeding with the sale Council is required to consider any submissions and if requested hear any submissions. Community engagement on the proposal to sell land is not the action of selling the land but is a consultation process that must be completed before the land determined to be sold or placed on the market.

Council’s costs

When land is sold on the market the purchaser is normally not required to pay any of Council’s costs apart from normal adjustments at settlement.

When a purchaser approaches the Council to purchase land that may or may not be in a transferable form and the purchaser is usually required to pay all Council’s costs. Such costs in addition to an application fee may include valuation survey publishing approvals legal and registration costs.

Where land is required to be subdivided prior to transfer service authorities may make requirements for works which may involve substantial costs and the purchaser will be required to pay these costs.

Depending on what is required to prepare land for sale the costs can be high and may in some cases exceed the value of the land. It is important that purchasers understand early in the process the potential costs prior to agreeing to purchase land.

Purchasers may employ their own consultants including surveyors engineers and planners at their cost to manage any approvals and subdivisions required to finalise a sale of land.

Land valuations and price

When selling land the Council is acting as a land owner and will have regard to the community’s interest in the land. The Council’s relationship with the purchaser is contractual and based on commercial principles.

The agreed price of the land will be determined having regard to a certified valuation of the land. The Council’s instructions to the valuer will depend on the circumstances and will usually be for the highest and best use approach. Council does not provide its valuation report to the land purchaser.

Land value and perception of land value can vary widely depending on the valuation brief and sales evidence.

Ultimately the price of the land to be sold will be determined by Council acting in the best interests of all ratepayers. There may be occasions where a dispute about the price of land arises between the parties where if agreed by Council a conference of the respective party’s valuers may occur. This conference aims to better inform the parties of the nature of the considerations that determined the price and assist agreement to be achieved.

If following a conference of valuers there remains a lack of agreement on the price and there remain good reasons to pursue the sale the Council may at its discretion agree to a determination process using an appointed independent valuer. The parties will agree on the process having regard to accepted commercial property dispute resolution procedures including the method of appointment of determining valuer the appointed valuer acting as an expert not an arbitrator costs and other relevant considerations.

Other Council responsibilities related to land transactions

The Council may have other statutory roles which function in parallel with the land sale process including acting as a planning drainage and road authority implementing special rates schemes charging municipal rates or providing building approvals.

Council’s contractual and statutory roles are separate and purchasers involved in Council’s statutory processes are encouraged to make early contact with the Property and Leasing Coordinator when land or land interests are required.

How long will a transaction take?

Straight forward transactions can take 6-9 months from initial contact through to settlement. Land sales requiring planning amendments planning permits subdivisions and works may take longer.

Other important points

• Purchasers will not be able to gain access to Council land prior to settlement. If you are an unauthorised occupant of Council land you will be required to enter into an occupancy agreement prior to proceeding with the sale process.
• Above ground services infrastructure which require the creation of dedicated reserves should not be located on recreation and environment reserves. If such infrastructure is approved purchasers will be required to provide implement and maintain appropriate landscaping plans and works.
• Service managers are internal departments with operational responsibility for land and are consulted prior to selling land. Potential land sales are referred to service managers by the Property and Leasing Coordinator .
• When you purchase land from the Council you may be required to consolidate that land with your principle title. This may be achieved by a condition of the contract of sale a s173 agreement attached to the land to be sold or as an action post settlement.
• Laneways can be convenient connection points within neighbourhoods. If laneways are through lanes or join other roads or lanes the Council does not generally allow all or part of the lane to be discontinued. Such lanes include those that are fenced off or the subject of unauthorised occupation.
• The Council will not offer advice about adverse possession or other occupation rights to land owners who have unauthorised occupation of Council land.  Council owned land is protected from adverse possession regardless of occupation.  The City may take action to removed unauthorised occupancy and seek reimbursement for associated costs.