LPL4804 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 4 April
2025
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, LPL4804 Assignment 1 Semester 1 2025 - DUE 4 April 2025
Question 1. John Masupa and Sophie Masupa is the registered
owner of Erf 111 Alexandra by virtue of Deed of Transfer
9876/2016. Jack sells and intends to transfer portion 1 of Erf 111
Alexandra to Abram against payment of the R1 100 000
purchase price. John has obtained mortgage finance from Absa
to purchase the property. The seller,John, has an existing
mortgage bond over Erf 111 Alexandra in favour of First
National Bank which he cannot afford to completely pay off at
this stage.
1.1 How will John existing First National mortgage bond be
dealt with on registration of transfer of portion 1 Erf 111
Alexandra to Abram? (2)
1.2 Assuming that John is domiciled in Zimbabwe and that he
married his Zimbabwean wife in Harare on 1 January 2021. Will
John be able to sign the transfer documents and, in particular,
the power of attorney to transfer? Explain. (4)
ANSWERS
Question 1.1: How will John’s existing First National
, mortgage bond be dealt with on registration of transfer of
portion 1 of Erf 111 Alexandra to Abram?
The treatment of the existing First National mortgage bond
when transferring a portion of property (Erf 111) to a buyer
(Abram) depends on several factors:
1. Mortgage Bond and Transfer of Property: When
property is mortgaged, the bondholder (in this case, First
National Bank) has a right to claim the debt secured by the
mortgage if the property is sold or transferred. The seller
(John) cannot transfer the property without settling or
making provisions for the outstanding bond, unless there is
an agreement in place to allow a portion of the property to
be transferred with the bond remaining over the property
not sold.
2. Severance of Portion of Property: In this case, John
intends to transfer portion 1 of Erf 111 to Abram. The first
step will be to sever the portion (portion 1) legally from the
rest of Erf 111, as this is necessary for a proper registration
of the new property. The deed of transfer for this portion
will reflect the boundaries of the portion and the property
rights attached to it.
3. Settlement of Existing Bond:
o The bank (First National Bank) will need to approve
the transfer of a portion of the property, as it remains
bound by the mortgage. First National will not allow
the portion to be transferred unless John either:
Pays off the mortgage on that portion at the time
of transfer.
Substitutes the bond or adjusts it so that it
covers only the remaining portion of Erf 111 (the
portion that John will keep).
ANSWERS) Semester 1 2025 - DUE 4 April
2025
www.stuvia.com
, LPL4804 Assignment 1 Semester 1 2025 - DUE 4 April 2025
Question 1. John Masupa and Sophie Masupa is the registered
owner of Erf 111 Alexandra by virtue of Deed of Transfer
9876/2016. Jack sells and intends to transfer portion 1 of Erf 111
Alexandra to Abram against payment of the R1 100 000
purchase price. John has obtained mortgage finance from Absa
to purchase the property. The seller,John, has an existing
mortgage bond over Erf 111 Alexandra in favour of First
National Bank which he cannot afford to completely pay off at
this stage.
1.1 How will John existing First National mortgage bond be
dealt with on registration of transfer of portion 1 Erf 111
Alexandra to Abram? (2)
1.2 Assuming that John is domiciled in Zimbabwe and that he
married his Zimbabwean wife in Harare on 1 January 2021. Will
John be able to sign the transfer documents and, in particular,
the power of attorney to transfer? Explain. (4)
ANSWERS
Question 1.1: How will John’s existing First National
, mortgage bond be dealt with on registration of transfer of
portion 1 of Erf 111 Alexandra to Abram?
The treatment of the existing First National mortgage bond
when transferring a portion of property (Erf 111) to a buyer
(Abram) depends on several factors:
1. Mortgage Bond and Transfer of Property: When
property is mortgaged, the bondholder (in this case, First
National Bank) has a right to claim the debt secured by the
mortgage if the property is sold or transferred. The seller
(John) cannot transfer the property without settling or
making provisions for the outstanding bond, unless there is
an agreement in place to allow a portion of the property to
be transferred with the bond remaining over the property
not sold.
2. Severance of Portion of Property: In this case, John
intends to transfer portion 1 of Erf 111 to Abram. The first
step will be to sever the portion (portion 1) legally from the
rest of Erf 111, as this is necessary for a proper registration
of the new property. The deed of transfer for this portion
will reflect the boundaries of the portion and the property
rights attached to it.
3. Settlement of Existing Bond:
o The bank (First National Bank) will need to approve
the transfer of a portion of the property, as it remains
bound by the mortgage. First National will not allow
the portion to be transferred unless John either:
Pays off the mortgage on that portion at the time
of transfer.
Substitutes the bond or adjusts it so that it
covers only the remaining portion of Erf 111 (the
portion that John will keep).
