If you’re looking to get more out of a big plot of land, subdividing it can be a great way to maximize its value and potential. The owner of a property may choose to subdivide the land so that one large piece of land is “cut” into two or more portions. The different portions will then be held by different titles.
WHY SUBDIVIDE?
When a property is subdivided, the owner of the specific property will be entitled to mortgage, lease, sell or register other rights over a specific portion of land, separately from each other. This enables the owner to deal with the properties separately.
This process is initiated by requesting the land surveyor to “divide” the land and draw up or draft the subdivision diagram(s). The diagrams are then submitted to the surveyor general for approval.
Section 43(1) of the Deeds Registries Act provides that, as soon as:
- A particular portion of land has been surveyed; and
- The surveyor general has approved the diagram for the specific portion,
a Certificate of Registered Title is issued for the specific portion.
A piece of land will always be subdivided into portions and a remainder (remaining extent). Thus, the new portions will have their new titles and the remaining extent will remain on the existing title.
Why we take out Certificates of Registered Title (CRT):
- To mortgage a certain portion of land.
- For townships – to sell individual erven, register bonds or servitudes over a specific erf.
Further, the remaining extent may not be transferred until a CRT has been taken out for every erf as per the subdivision diagrams.
Before the owner may subdivide:
- Consent must be obtained from the relevant authorities, either the Municipal Council or Town Council for urban erven, or the Ministry of Agriculture for agricultural land.
- Diagram requirements – the surveyed and approved diagrams must accompany the application.
All existing conditions must be carried over to the new title and the local authorities may impose new conditions; this must be clearly indicated on the consent/certificate.
Subdividing a large erf can be a lucrative endeavour, but it requires careful planning and compliance with local regulations. Working with professionals and staying informed about the legal and market aspects will help you make the most of your property.
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