In the world of property development and land use planning, landowners often face the decision of whether to legally merge properties into one or simply treat them as a single unit while keeping their identities intact.
That’s where consolidation and notarial tie agreements come into play, two very different legal tools with a common goal: to enable better use of land.
Let’s talk consolidation first.
This is the legal process of combining two or more adjacent pieces of land into a single registered erf. You’ll need to meet some important criteria: all the land must be in the same owner’s name, the plots must border one another, and they must lie within the same township and registration division.
Add to that a formal survey by a land surveyor, a consolidation diagram approved by the Surveyor-General, and the green light from the local municipality. If there are bonds involved, you’ll also need your bondholder’s consent before anything can proceed.
Once everything is in place, a conveyancer submits the paperwork to the Registrar of Deeds, and you get a brand-new title deed for your consolidated erf.
This route offers some great benefits, consolidated land can unlock development potential, increase market value, and simplify municipal billing and administration. It also tends to attract developers and banks more easily.
But there are drawbacks. It’s not cheap, it requires significant legal and administrative effort, and once consolidated, you can’t just decide to break it up again without launching into an expensive and time-consuming subdivision process.
It’s ideal for long-term projects, but not so flexible if your plans might change down the line.
Now enter the notarial tie agreement, the more agile cousin of consolidation.
This involves registering a condition in the title deeds of two or more properties, stating they can’t be sold, leased, or dealt with separately. It’s usually required when a building or development spans multiple erven—think of shopping centres, apartment blocks, or office parks.
What makes this option attractive is its flexibility. The properties don’t need to be next to each other, or even in the same Deeds Registry, and they don’t need to share ownership. Plus, you don’t have to touch existing bonds, just get the bondholder’s consent to register the tie.
Reversing a notarial tie is also easier than undoing a consolidation. It only requires a formal notarial deed and consent from the local authority or enforcing party.
Still, it’s not without its challenges.
A notarial tie limits your ability to sell or transfer properties independently, and if different people own the erven, they all have to agree, not always easy. The process also involves legal fees, Deeds Office charges, and municipal approval for cancellation.
So, what’s the better option?
If you need long-term integration and have a clear development goal, consolidation might be worth the upfront effort.
But if you want speed, flexibility, and fewer long-term restrictions, a notarial tie could be your best bet
Article by Leena Inderjeeth and Nelisha Pillay
