LPL4805
Assignment 1
Semester 2
Due 3 September 2025
, Department of private law.
Module: LPL4805- Notarial Practice.
Assignment 1-20 Marks.
Semester 2- 2025.
Primary Lecturer: Ms S. Motjopi.
Due date: 03 September 2025.
QUESTION 1 (10 marks)
Issue. Xolani asks you (a notary) to draft and register in the Deeds Registry a notarial
bond over (a) Erf 201 Meadowlands Township (an immovable, currently leased to
Zanele) and (b) Xolani’s usufruct over the farm Moreson, in favour of Moses as security
for a loan. Can you execute the instruction as given?
Answer (conclusion)
No — you must not register a notarial bond over those assets as instructed. The two
items are rights in/over immovable property (ownership of Erf 201 and a usufruct over
Moreson) and therefore security must be created by a mortgage (mortgage bond) or by
mortgage-style treatment of the servitude/usufruct (with the correct parties and waivers),
not by a notarial bond which is the instrument for movable property.
Explanation and application to the facts.
1. What a notarial bond and a mortgage bond secure
• Notarial bonds (general or special) are the statutory instruments for
hypothecating movable property; a special notarial bond that complies with the
Security by Means of Movable Property Act (SMPA) can give the bondholder a
real (preferential) security right in the specified movables on
registration/perfection. A general notarial bond operates differently and requires
“perfection” to obtain real rights in practice.
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Assignment 1
Semester 2
Due 3 September 2025
, Department of private law.
Module: LPL4805- Notarial Practice.
Assignment 1-20 Marks.
Semester 2- 2025.
Primary Lecturer: Ms S. Motjopi.
Due date: 03 September 2025.
QUESTION 1 (10 marks)
Issue. Xolani asks you (a notary) to draft and register in the Deeds Registry a notarial
bond over (a) Erf 201 Meadowlands Township (an immovable, currently leased to
Zanele) and (b) Xolani’s usufruct over the farm Moreson, in favour of Moses as security
for a loan. Can you execute the instruction as given?
Answer (conclusion)
No — you must not register a notarial bond over those assets as instructed. The two
items are rights in/over immovable property (ownership of Erf 201 and a usufruct over
Moreson) and therefore security must be created by a mortgage (mortgage bond) or by
mortgage-style treatment of the servitude/usufruct (with the correct parties and waivers),
not by a notarial bond which is the instrument for movable property.
Explanation and application to the facts.
1. What a notarial bond and a mortgage bond secure
• Notarial bonds (general or special) are the statutory instruments for
hypothecating movable property; a special notarial bond that complies with the
Security by Means of Movable Property Act (SMPA) can give the bondholder a
real (preferential) security right in the specified movables on
registration/perfection. A general notarial bond operates differently and requires
“perfection” to obtain real rights in practice.
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