, LPL4804 Assignment 1 Semester 1 2026 - Due
Date: 17 March 2026; 100 % COMPLETE ANSWERS
AND EXPLANATION.
1.1 Zanele Khumalo owns erven 3 and 4 of Kruger Township and
wishes to consolidate the properties. Erf 3 has been hypothecated
with a mortgage bond in favour of Blue Bank. How should she deal
with the mortgage bond over Erf 3.?
ANSWER;
Zanele Khumalo owns Erf 3 and Erf 4 of Kruger Township and wishes to
consolidate these properties into a single erf. Erf 3, however, is subject to a
mortgage bond in favour of Blue Bank, which constitutes a real right
over that property. Under South African law, specifically the Deeds
Registries Act 47 of 1937, consolidation of properties creates a new erf
and cancels the original erven in the deeds registry. Importantly, a
mortgage bond registered over Erf 3 does not automatically extend to
the new consolidated property, meaning the bank’s security would be
affected if consolidation were to proceed without its consent. Therefore,
Zanele must first approach Blue Bank and obtain its written consent to
proceed with the consolidation.
Once consent is granted, there are two main ways to deal with the bond.
The first option is to cancel the existing bond over Erf 3 and register a
new mortgage bond over the consolidated Erf 5, which will ensure that
Blue Bank’s security is maintained over the combined property. The second
option, if the bank agrees, is to amend the existing bond so that it covers
the newly consolidated Erf 5. Without the mortgagee’s approval, the
consolidation cannot be legally registered, as the bank’s rights must be
protected. This process ensures that the mortgagee’s security remains
valid while allowing Zanele to consolidate her erven, creating a single title
for Erf 5 Kruger Township that reflects both her ownership and the bank’s
rights.
Date: 17 March 2026; 100 % COMPLETE ANSWERS
AND EXPLANATION.
1.1 Zanele Khumalo owns erven 3 and 4 of Kruger Township and
wishes to consolidate the properties. Erf 3 has been hypothecated
with a mortgage bond in favour of Blue Bank. How should she deal
with the mortgage bond over Erf 3.?
ANSWER;
Zanele Khumalo owns Erf 3 and Erf 4 of Kruger Township and wishes to
consolidate these properties into a single erf. Erf 3, however, is subject to a
mortgage bond in favour of Blue Bank, which constitutes a real right
over that property. Under South African law, specifically the Deeds
Registries Act 47 of 1937, consolidation of properties creates a new erf
and cancels the original erven in the deeds registry. Importantly, a
mortgage bond registered over Erf 3 does not automatically extend to
the new consolidated property, meaning the bank’s security would be
affected if consolidation were to proceed without its consent. Therefore,
Zanele must first approach Blue Bank and obtain its written consent to
proceed with the consolidation.
Once consent is granted, there are two main ways to deal with the bond.
The first option is to cancel the existing bond over Erf 3 and register a
new mortgage bond over the consolidated Erf 5, which will ensure that
Blue Bank’s security is maintained over the combined property. The second
option, if the bank agrees, is to amend the existing bond so that it covers
the newly consolidated Erf 5. Without the mortgagee’s approval, the
consolidation cannot be legally registered, as the bank’s rights must be
protected. This process ensures that the mortgagee’s security remains
valid while allowing Zanele to consolidate her erven, creating a single title
for Erf 5 Kruger Township that reflects both her ownership and the bank’s
rights.
