Can a portion of an erf be sold if it has not yet been subdivided?
The short answer is: Yes. The contract of sale requires agreement on three essential elements to be valid: The parties, the purchase price and the property being purchased. As long as the property can be clearly identified, by means of a sketch or a pointing out of the boundaries of the property a valid contract can be concluded.
However, a bond cannot be registered over the portion sold while it has not been subdivided. The bank will require the precise description of the property and an approved Surveyor-General diagram before a bond will be approved.
Transfer of the property to the purchaser likewise cannot take place until the subdivisional plans are approved by the Surveyor-General.
In light of the above, the agreement of sale should include terms to the effect that the sale is subject to the successful subdivision of the property and must state which party will carry the costs of subdividing the property.
Take a look at MC van der Berg’s MCSellersGuide for more