LPL4804
Assignment 1
Semester 1
Due 17 March 2026
, LPL4804 ASSIGNMENT 1 SEMESTER 1 DUE 17 MARCH 2026
Question 1
Zanele Khumalo is the registered owner of Erf 3 and Erf 4 in Kruger Township.
She intends to consolidate these two erven into one property. Erf 3 is subject to a
registered mortgage bond in favour of Blue Bank. Explain fully how the existing
mortgage bond over Erf 3 must be dealt with in order for the consolidation to be
legally effected and registered in the Deeds Office.
Answer
Consolidation of erven is a deeds registration process whereby two or more adjacent
properties are combined into a single new erf. While ownership remains unchanged,
consolidation directly affects real rights registered over the land. A mortgage bond is
such a real right and therefore cannot be ignored during consolidation.
In this scenario, Erf 3 is encumbered by a mortgage bond in favour of Blue Bank. The
effect of consolidation would be to replace Erf 3 and Erf 4 with a new property, Erf 5
Kruger Township. Since the bonded property would cease to exist in its original form,
the mortgage bond must be lawfully dealt with to protect the bondholder’s security.
The Deeds Registries Act prohibits the removal, reduction, or weakening of a registered
real right without the consent of the holder of that right (Deeds Registries Act 47 of
1937, section 56).
Zanele has the following legally acceptable options:
1. Cancellation of the mortgage bond
Zanele may repay the outstanding loan secured by the mortgage bond. Once the debt is
settled, Blue Bank will issue a consent to cancellation. The bond over Erf 3 will then be
cancelled and removed from the deeds registry records.
After cancellation, the consolidation may proceed unencumbered.
Assignment 1
Semester 1
Due 17 March 2026
, LPL4804 ASSIGNMENT 1 SEMESTER 1 DUE 17 MARCH 2026
Question 1
Zanele Khumalo is the registered owner of Erf 3 and Erf 4 in Kruger Township.
She intends to consolidate these two erven into one property. Erf 3 is subject to a
registered mortgage bond in favour of Blue Bank. Explain fully how the existing
mortgage bond over Erf 3 must be dealt with in order for the consolidation to be
legally effected and registered in the Deeds Office.
Answer
Consolidation of erven is a deeds registration process whereby two or more adjacent
properties are combined into a single new erf. While ownership remains unchanged,
consolidation directly affects real rights registered over the land. A mortgage bond is
such a real right and therefore cannot be ignored during consolidation.
In this scenario, Erf 3 is encumbered by a mortgage bond in favour of Blue Bank. The
effect of consolidation would be to replace Erf 3 and Erf 4 with a new property, Erf 5
Kruger Township. Since the bonded property would cease to exist in its original form,
the mortgage bond must be lawfully dealt with to protect the bondholder’s security.
The Deeds Registries Act prohibits the removal, reduction, or weakening of a registered
real right without the consent of the holder of that right (Deeds Registries Act 47 of
1937, section 56).
Zanele has the following legally acceptable options:
1. Cancellation of the mortgage bond
Zanele may repay the outstanding loan secured by the mortgage bond. Once the debt is
settled, Blue Bank will issue a consent to cancellation. The bond over Erf 3 will then be
cancelled and removed from the deeds registry records.
After cancellation, the consolidation may proceed unencumbered.
