, Question 1
1. Treatment of the mortgage bond over Erf 3 upon consolidation
When Zanele Khumalo seeks to consolidate Erf 3 and Erf 4 of Kruger Township, the existence of a
registered mortgage bond over Erf 3 in favour of Blue Bank creates a legal obstacle that must be
addressed before consolidation can take place. In terms of section 56 of the Deeds Registries Act 37
of 1937, land subject to a registered real right such as a mortgage bond may not be consolidated
unless that right is either dealt with or preserved in an approved manner (Deeds Registries Act 37
of 1937). The mortgage bond over Erf 3 cannot simply fall away as consolidation results in the
original erven being replaced by a new consolidated erf, which would otherwise prejudice the
bondholder’s security. Accordingly, Zanele must obtain the consent of Blue Bank, as the mortgagee,
to the consolidation, since consolidation affects the land serving as security for the debt (Muller et
al., 2019). The usual conveyancing practice is either to cancel the existing bond over Erf 3 and
simultaneously register a new mortgage bond over the consolidated Erf 5, or alternatively, to have
the bond endorsed so that it is carried forward and extended to burden the consolidated property,
provided the mortgagee consents to such endorsement (Van der Merwe, 2016). In practice, banks
generally require cancellation and re-registration of the bond to ensure that their security is clearly
defined over the new erf. Without the bondholder’s consent and proper dealing with the bond, the
Registrar of Deeds will refuse registration of the consolidation (Deeds Registries Act 37 of 1937;
Badenhorst et al., 2020).
2. Property description in a deed of transfer after consolidation
In terms of regulation 28 of the Deeds Registries Act 37 of 1937, the description of immovable
property in a deed of transfer must be clear, accurate, and sufficient to identify the property
without ambiguity (Regulations under the Deeds Registries Act, 1937). Following the consolidation
of Erf 3 and Erf 4 into Erf 5 Kruger Township, the property description in the deed of transfer would
reflect the new erf number, township name, registration division, province, extent, and reference
to the approved consolidation diagram. A compliant description would read as follows: “Erf 5
Kruger Township, Registration Division JR, Province of Gauteng, measuring 1 200 (One Thousand
Two Hundred) square metres, held by Deed of Consolidated Transfer T12345/2026, as shown on
Consolidation Diagram No. SG 789/2025.” This description meets the requirements of regulation 28
by clearly identifying the consolidated erf, its extent, and its origin in the approved survey
documentation, thereby enabling the Registrar of Deeds to register the transfer without
uncertainty (Muller et al., 2019).
1. Treatment of the mortgage bond over Erf 3 upon consolidation
When Zanele Khumalo seeks to consolidate Erf 3 and Erf 4 of Kruger Township, the existence of a
registered mortgage bond over Erf 3 in favour of Blue Bank creates a legal obstacle that must be
addressed before consolidation can take place. In terms of section 56 of the Deeds Registries Act 37
of 1937, land subject to a registered real right such as a mortgage bond may not be consolidated
unless that right is either dealt with or preserved in an approved manner (Deeds Registries Act 37
of 1937). The mortgage bond over Erf 3 cannot simply fall away as consolidation results in the
original erven being replaced by a new consolidated erf, which would otherwise prejudice the
bondholder’s security. Accordingly, Zanele must obtain the consent of Blue Bank, as the mortgagee,
to the consolidation, since consolidation affects the land serving as security for the debt (Muller et
al., 2019). The usual conveyancing practice is either to cancel the existing bond over Erf 3 and
simultaneously register a new mortgage bond over the consolidated Erf 5, or alternatively, to have
the bond endorsed so that it is carried forward and extended to burden the consolidated property,
provided the mortgagee consents to such endorsement (Van der Merwe, 2016). In practice, banks
generally require cancellation and re-registration of the bond to ensure that their security is clearly
defined over the new erf. Without the bondholder’s consent and proper dealing with the bond, the
Registrar of Deeds will refuse registration of the consolidation (Deeds Registries Act 37 of 1937;
Badenhorst et al., 2020).
2. Property description in a deed of transfer after consolidation
In terms of regulation 28 of the Deeds Registries Act 37 of 1937, the description of immovable
property in a deed of transfer must be clear, accurate, and sufficient to identify the property
without ambiguity (Regulations under the Deeds Registries Act, 1937). Following the consolidation
of Erf 3 and Erf 4 into Erf 5 Kruger Township, the property description in the deed of transfer would
reflect the new erf number, township name, registration division, province, extent, and reference
to the approved consolidation diagram. A compliant description would read as follows: “Erf 5
Kruger Township, Registration Division JR, Province of Gauteng, measuring 1 200 (One Thousand
Two Hundred) square metres, held by Deed of Consolidated Transfer T12345/2026, as shown on
Consolidation Diagram No. SG 789/2025.” This description meets the requirements of regulation 28
by clearly identifying the consolidated erf, its extent, and its origin in the approved survey
documentation, thereby enabling the Registrar of Deeds to register the transfer without
uncertainty (Muller et al., 2019).
