How to Consolidate Your Property
Key Takeaways:
Consolidating property involves merging separate properties into one entity.
Legal processes, compliance with zoning laws, and financial considerations are pivotal.
Diligent planning and professional guidance from a conveyancer ensure a successful and compliant property consolidation.
When there are two or more bordering pieces of land, which are owned by the same person or two or more persons in the same undivided shares in each piece of land, reasons may exist (such as for agricultural purposes, for the creation of a large conservancy by combining several farms, for the development of a residential estate or perhaps an industrial or office park on two or more pieces of land etc.) which simply makes sense to consolidate two separate pieces of land into one joined piece of land instead.
A joining together….
It sounds soooo romantic.
Consolidating – like the joining together of two souls into one. Soul mates. Souls that have been wondering the earth in search of one another. And once they find each other, the joining together of two separate families into one big happy family (for the most part – just ask my mother-in-law).
Consolidating your estates into one. Everything is now joined. One.
There’s a Happily Ever After theme in the air.
Doves are released…. Romantic music is playing in the background.
And swoooooon.
Ah-hum!
It’s not that type of article!
Consolidating property is far less romantic. And far more practical and process orientated. Details driven and precise.
So nothing like romance or love. At all…..
So what does “consolidating” mean” (in this instance)?
Consolidation is defined by Merriam Webster as the “process of uniting” or the joining together of two or more parts. Put differently, consolidating can refer to the combination of a number of things into a single more effective or coherent whole.
When applied to land, it can mean the combining, merging or joining together of two or more properties that border one another. Sometimes out of choice and sometimes the owner of immovable property is compelled to.
But either way, these once separated properties, become one by the process of consolidation.
But why would one want to consolidate their property?
What would make someone want to combine their property?
Well, when there are two or more bordering pieces of land, which are owned by the same person or two or more persons in the same undivided shares in each piece of land, reasons may exist (such as for agricultural purposes, for the creation of a large conservancy by combining several farms, for the development of a residential estate or perhaps an industrial or office park on two or more pieces of land etc.) which simply makes sense to consolidate two separate pieces of land into one joined piece of land instead.
Here, the owner(s) must apply to the Registrar of Deeds to be issued with a Certificate of Consolidated Title in terms of section 40 of the Deeds Registries Act, No 47 of 1937 (‘the DRA’).
It is important however to take note of the following prerequisites that need to be met before an owner opts for consolidation –
land portions should be owned by the same person or two or more persons in the same undivided shares;
the land portions should be adjacent to each other, and
the land portions must be in the same registration division of the same Township.
But take note of the types of land being consolidated
It is important to note that depending on what type of land is being consolidated different authorities may need to be approached.
If the application is for a piece of land in an urban area, the town planner will submit an application to the local authority or municipality.
If the land consolidation is related to property outside an urban area (i.e. agricultural or farm land), the application may need to be made to the South African Heritage Resource Agency for structures older than 50 years. The application can also be submitted to the provincial government if a title deed restriction applies.
You may furthermore need to make an application to one of the nature conservation authorities.
If it is a rural application for land consolidation or subdivision, you will have to apply to the Department of Agriculture, Land Reform and Rural Development, and the local authority.
How is this done?
First and foremost it must be noted that prior consent should have been obtained through the town planner from the relevant local authority or municipality.
Some important tips!
The properties should all be registered in the name of one person or a company. A consolidation application cannot be approved when the properties are registered in different entities.
The municipality will only consider a consolidation application favourably if the application is in line with the development policies and urban planning goals for the city. The application should also not negatively affect communities or surrounding property owners.
Once the consolidation application has been approved by the local authority or municipality, the actual survey of the consolidated property has to be done by a registered Land Surveyor. The Land Surveyors that are appointed should be registered with the South African Geomatics Council (previously known as the South African Council for Professional and Technical Surveyors).
The duly appointed Land Surveyor will need to complete a cadastral survey.
Wait, what is a cadastral survey?
It is a survey that contains the technical information such as dimensions, area, and exact descriptions of all borders and property lines as well as information concerning land use data, the parcel’s ownership, both current and historical, and its position.
The Land Surveyor will then need to complete an accurate diagram based on the cadastral survey and submit the (required) diagram to the Surveyor-General’s Office, for approval.
Important for the issue of the certificate - the diagram must be prepared according to the portions of land that are to be consolidated into a single unit of land. And this diagram must actually be approved by the Surveyor-General.
Once the diagram is approved, you can then instruct a specialist conveyancing attorney to assist with the registering of the title deed (which is subject to the consolidated property). This is done through a Certificate of Consolidated Title.
The documents for lodgement and registration at the Deeds Office will include –
the application for a certificate of consolidated title;
the draft certificate of consolidated title;
the relevant title deeds, and
the approved consolidation diagram.
Take note!
If a bond is registered over the properties being consolidated, the bond-holder (i.e. bank) will have to consent to the consolidation. Should there however be different bonds, a problem may arise, causing the application to fail. To rectify this failure, a new bond will need to be registered over the consolidated property, and the process will then begin anew.
Remember! - once the properties have been consolidated it can only be dealt with again separately if a subdivision is applied for.
There’s a lot to take in…
There are indeed.
Many considerations need to be taken into account. It is not always straight forward. Especially with regards to which authorities to make an application to, how to go about consolidating your land and which land surveyors to use, the extent a component or components of consolidated land are subject to existing conditions or entitled to existing rights created or imposed on a smaller land unit which now forms part of the consolidated land (especially when servitudes come into the picture).
Therefore to establish which procedures to follow, it will be crucial to involve a qualified Conveyancer and/or Notary in the whole process. From the beginning. They will be able to guide and advise you properly and ensure that the whole process proceeds smoothly and without unnecessary hitches.
The attorneys at Benaters are well versed in these applications and would be happy to assist you with both advice on the best way to consolidate your property and support you whilst you go through the process.
Get in touch with them today to see how they can help with the consolidation of your property.
Written by Alicia Koch on behalf of Benaters