Property Development Glossary

Plain English definitions for the terms you'll encounter when exploring development potential in NSW.

A-D E-H I-L M-P Q-T U-Z

A - D

88B Instrument

A legal document registered on a property's title that creates easements, covenants, or restrictions. Named after Section 88B of the Conveyancing Act 1919. Common examples include shared driveway rights, drainage easements, or building restrictions. These run with the land and bind future owners.

Acid Sulphate Soils

Soils containing iron sulphides that produce sulphuric acid when exposed to air through excavation or drainage. Common in low-lying coastal areas. If your land is affected, you may need a management plan before disturbing the soil.

Battleaxe Lot

A lot shaped like an axe, with a narrow driveway handle providing access from the street to a larger block behind. Common in subdivisions where a rear lot is created behind an existing dwelling.

Building Code of Australia (BCA)

The national code that sets minimum construction standards for buildings. Now part of the National Construction Code (NCC). Covers structural requirements, fire safety, access, and energy efficiency.

Complying Development Certificate (CDC)

A fast-track approval for straightforward developments that meet predetermined standards. Issued by council or a private certifier, typically within 10-20 days. Cheaper and faster than a DA, but your project must tick every box in the relevant code.

Covenant

A restriction on how land can be used, registered on the title. Restrictive covenants limit what you can do (e.g., "no more than two dwellings"). Positive covenants require you to do something (e.g., maintain a retaining wall). Some old covenants can be extinguished if they're obsolete.

Development Application (DA)

A formal application to council for permission to develop land. Required for most significant works. Council assesses the proposal against planning controls and may seek neighbour comments. Typical timeframe: 40-90 days, but complex projects take longer.

Development Control Plan (DCP)

Detailed planning guidelines that supplement the LEP. Contains specific controls for setbacks, landscaping, parking, building design, and more. While DCPs guide development, some variations may be accepted if you can justify them.

Deposited Plan (DP)

A registered survey plan showing lot boundaries, dimensions, and easements. Every lot in NSW has a DP number. The plan is the legal definition of your property boundaries, not the fence.

Dual Occupancy

Two dwellings on one lot. Can be attached (sharing a wall, like a duplex) or detached (separate buildings). In NSW R2 zones, attached dual occupancies are often permitted with consent. Some councils also allow detached dual occupancies in certain areas.

E - H

Easement

A right for someone else to use part of your land for a specific purpose. Common types include drainage easements (for stormwater pipes), right of carriageway (for access), and easements for services (electricity, sewer). You generally can't build over an easement.

Encumbrance

Any claim, restriction, or liability attached to a property that may affect its value or use. Includes mortgages, easements, covenants, and caveats. Shown on the Certificate of Title.

Floor Space Ratio (FSR)

The ratio of total floor area to site area. An FSR of 0.5:1 means you can build 0.5 square metres of floor space for every 1 square metre of land. So a 600sqm block with 0.5:1 FSR allows up to 300sqm of floor area across all levels.

Frontage

The boundary of your lot that faces the street. Minimum frontage requirements in DCPs often determine whether subdivision or certain development types are possible. Corner lots have two frontages.

Gross Floor Area (GFA)

The total floor area of a building measured from the outside of external walls. Includes all enclosed spaces but typically excludes garages, balconies, and some plant rooms. This is what counts towards your FSR calculation.

Height Limit

The maximum building height allowed on your land, set by the LEP. Usually measured from ground level to the highest point of the roof. A 9m height limit typically allows 2-3 storeys depending on floor-to-ceiling heights.

Heritage Listing

Protection of buildings or places with historical, architectural, or cultural significance. Can be local (council), state (State Heritage Register), or national. Heritage listing doesn't prevent development but requires careful consideration and often heritage consultant input.

Heritage Conservation Area (HCA)

An area identified for its heritage character. Even if your individual property isn't heritage listed, being in an HCA means stricter controls on design, materials, and demolition to preserve the area's character.

I - L

Local Environmental Plan (LEP)

The main planning document for each council area. Sets the legal framework including zones, FSR, height limits, heritage listings, and minimum lot sizes. LEP controls are generally non-negotiable unlike DCP controls.

Lot

A parcel of land with defined boundaries, identified by a lot number and deposited plan (e.g., Lot 1 DP 123456). This is the legal description of land ownership in NSW.

Minimum Lot Size

The smallest lot size allowed for subdivision in your zone, set by the LEP. For example, if minimum lot size is 450sqm and you have 850sqm, you can't subdivide into two equal lots. Some developments like dual occupancies have different minimum lot size requirements.

M - P

Party Wall

A shared wall on the boundary between two properties. Common in semi-detached houses and terraces. Party wall rights allow you to build up to or on the boundary, but come with obligations about maintenance and not damaging the neighbour's structure.

Planning Certificate (Section 10.7)

An official certificate from council stating the planning controls and constraints affecting a property. Section 10.7(2) covers standard matters; 10.7(5) includes additional council-held information. Essential for understanding what applies to your land.

Private Certifier

An accredited professional who can issue CDCs, construction certificates, and occupation certificates instead of council. Often faster than council but you're paying for the service. Must be registered with NSW Fair Trading.

Q - T

R2 Low Density Residential

The most common residential zone in NSW. Primarily for houses and low-scale housing like dual occupancies (attached). Multi-dwelling housing and apartments are generally prohibited. Check your specific council's LEP for permitted uses.

Setback

The minimum distance a building must be from a boundary. Front setbacks control streetscape; side setbacks ensure privacy and light access; rear setbacks protect backyard amenity. Set by the DCP and sometimes vary based on building height.

State Environmental Planning Policy (SEPP)

State-level planning policies that override or supplement local controls. Important SEPPs include Housing SEPP (granny flats, boarding houses), Exempt and Complying Development Codes SEPP (fast-track approvals), and Transport and Infrastructure SEPP.

Site Coverage

The percentage of your lot that can be covered by buildings. A 50% site coverage on a 600sqm lot means buildings can cover up to 300sqm of the ground. Different from FSR, which counts total floor area across all levels.

Strata Title

A form of ownership where you own your individual lot (unit/apartment) and share ownership of common property with other lot owners. Governed by the Strata Schemes Management Act and involves an owners corporation.

Subdivision

Dividing land into two or more lots. Requires council approval and registration of a new deposited plan. Torrens title subdivision creates separate freehold lots; strata subdivision creates lots within a building.

Certificate of Title

The official record of land ownership in NSW, held by NSW Land Registry Services. Shows the registered owner, lot/DP reference, and any encumbrances like mortgages, easements, or covenants.

Torrens Title

The standard form of land ownership in Australia where you own the land and everything on it outright. Named after Sir Robert Torrens who introduced the system. Distinct from strata title or community title.

U - Z

Variation (Clause 4.6)

A request to vary a development standard in the LEP (like height or FSR). You must demonstrate the standard is unreasonable in your case and the development still meets zone objectives. Not all variations are approved.

Zone

A classification that determines what can be built on land. NSW uses standard zones like R2 (Low Density Residential), R3 (Medium Density), E1 (Local Centre), and SP2 (Infrastructure). Each zone has permitted uses, prohibited uses, and specific objectives.

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