(COMPLETE ANSWERS)
Semester 2 2026 - DUE
26 August 2026
For assistance contact
Email:
,1. Requirements for a Notarial Bond Under Act 57 of 1993
To ensure the real security benefit provided by Section 1(1) of the Security by Means of Movable
Property Act 57 of 1993, a special notarial bond must satisfy the following strict requirements: [1]
Specific Description: The bond must explicitly describe the corporeal movable property in such a
manner that the individual items can be readily recognized and identified. Broad, blanket
generic descriptions do not qualify. [1, 2, 3]
Proper Execution: It must be attested and executed before a qualified Notary Public. [1]
Timeous Registration: It must be registered in the relevant Deeds Registry within the strict
statutory period allowed under the Deeds Registries Act. [1]
2. Disqualification of Trustees Under Act 57 of 1988
Under South African law and the general framework of the Trust Property Control Act 57 of 1988, the
following categories of persons are legally incompetent or disqualified from acting as trustees: [1, 2]
An unrehabilitated insolvent.
Any person declared by a competent court to be mentally ill, incapacitated, or incapable of
managing their own affairs.
A minor or any individual lacking full legal and contractual capacity.
Any person who has been removed from an office of trust by a court of law due to misconduct
or breach of fiduciary duty.
A corporate entity that is in liquidation or wound up. [1]
3. Antenuptial vs. Postnuptial Contracts
Antenuptial Contract (ANC): An agreement entered into and executed by intending spouses
prior to the solemnization of their marriage. Its fundamental purpose is to exclude the statutory
community of property and community of profit and loss. [1]
Postnuptial Contract: An agreement entered into and executed by spouses after their marriage
has already taken place. It requires a formal joint application to the High Court under Section
21(1) of the Matrimonial Property Act to authorize the change of their existing marital property
system. [1, 2, 3]
4. Required Facts for a Notarial Bond (Section 61 of the Deeds Registries Act)
, In terms of Section 61 of the Deeds Registries Act 47 of 1937, for a notarial bond to be acceptable for
registration, it must state:
The full names, identity numbers, and marital status of both the debtor (mortgagor) and the
creditor (mortgagee).
A clear and unambiguous record of the causa (the underlying legal reason for the debt, such as
money lent and advanced, or an overdraft facility).
The specific, fixed sum of money being secured by the bond, along with any provisions made for
an additional sum to cover future costs or interest.
The place and date of execution before the attesting notary public. [1, 2]
5. Section 21 Matrimonial Property Act Applications
For the High Court to grant an order permitting Mary and Joe Jones to change their matrimonial
property system under Section 21(1), the parties must satisfy the court of the following: [1, 2]
Sound Reasons: There must be legitimate, objective, and sound reasons for the proposed
change.
No Prejudice to Others: The change must not cause prejudice to any other person or creditor.
Sufficient Notice to Creditors: Explicit evidence must be provided showing that sufficient
advance notice of the proposed change has been given to all current creditors.
Full Financial Disclosure: A comprehensive overview of their current asset and liability positions
must be disclosed to show financial solvency. [1, 2]
6. Overdraft Security for X and Bank Y
Advised Documents and Objects of Security
To secure X's outstanding overdraft facility with Bank Y using its vehicles and trading stock:
Vehicles (Corporeal Movables): A Special Notarial Bond must be prepared in terms of Act 57 of
1993. Each vehicle must be explicitly identified by its make, model, chassis number, engine
number, and registration plates to achieve the status of a real right directly upon registration.
Trading Stock (Fluctuating/Fungible Assets): A General Notarial Bond must be prepared over all
trading stock. Because trading stock is continuously sold and replenished, it cannot be
individually specified for a special notarial bond. [1, 2, 3]
Perfection & Achievement of Real Security
The Special Notarial Bond over the vehicles constitutes a deemed pledge and creates
immediate real security in favour of Bank Y the moment it is successfully registered in the Deeds
Registry. No physical delivery is required.
The General Notarial Bond over the trading stock only provides a personal right and a statutory
preference upon registration. It will only convert into a real security right once the bank