Do you have a big piece of land that is becoming expensive and labour-intensive to maintain? Or perhaps you have two adjacent properties you’d like to combine into a larger erf? Subdividing or consolidating could be the ideal solution for you.
Subdivision of your property has many benefits for you as the owner. Subdividing can increase your property’s value by creating smaller plots for sale. Alternatively, you could develop the smaller plots and sell or rent them to generate an income.
Subdivision may assist with your estate planning, as each of your children could benefit from inheriting a smaller plot of their own. If your land is zoned for commercial use, you could subdivide and build commercial spaces, thereby also gaining an extra income.
If you notice a rapid population growth in your area, subdivision of your land could assist with urban densification. Your land could be large enough to be divided into smaller pieces of land to be developed. This is known as township development.
While there are benefits to subdivision, there are also drawbacks. The process is a lengthy and expensive exercise. Professional experts, such as a land surveyor, town planner, and an attorney who specialises in conveyancing, are appointed to assist the property owner. Approval from the municipality must be obtained for the subdivision. The municipality may impose conditions regarding the infrastructure and services associated with the property, which the applicant must address in order to obtain the municipality’s certificate of approval.
Subdivision applications need to comply with the Spatial Planning and Land Use Management Act 16 of 2013 as well, whether for conventional or agricultural property.
Once the application for subdivision is approved, the owner may apply, in terms of Section 43(1) of the Deeds Registries Act 47 of 1937, to the local Deeds Office for separate title deeds for each portion, which is known as a Certificate of Registered Title Deed. You are then in a position to sell a portion, obtain a mortgage loan for each portion or lease each portion.
Consolidation is the joining of two or more pieces of land. To consolidate pieces of land, they must share a common boundary line and must be owned by the same owners. The pieces of land must be in the same registration division and the same province.
There are benefits to consolidating pieces of land, namely, where the owner of the pieces of land wishes to construct a house over both pieces of the land, allows for the efficient planning and construction of roads, irrigation, and other infrastructure, which a larger portion of land may be accomplish, it can help protect farmland from urban sprawl and other development pressures.
The consolidation of pieces of land must comply with the Spatial Planning and Land Use Management Act 16 of 2013.
Similar to subdivision, land consolidation is a costly process that also requires the expertise of professional bodies. The owner may apply to the local Deeds Office for a Certificate of Consolidated Title Deed for the newly formed property, which replaces the Title Deeds held for the two or more pieces of land that have been consolidated.
Section 40 of the Deeds Registries Act 47 of 1937, with specific reference to section 40(1)(a) to (f), sets out the requirements for the consolidation of properties.
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