, LPL4805 Assignment 1
Semester 2 2025
DUE 3 September 2025
Use this document as a guide and for references to answer your assignment
Question 1.
Xolani is the owner of Erf 201 Meadowlands Township, which he leases to Zanele.
Xolani is also the holder of a usufruct over the farm, Moreson, just outside the town
where he farms. Xolani borrows money from a family member Moses. Xolani instructs
you, a notary, to draft and register in the deeds registry, a notarial bond over these two
assets in favour of Moses as security for payment of the debt. Fully explain whether you
will be able to execute the instruction. (10)
Introduction
A notarial bond is a type of security agreement in which a debtor hypothecates
movable property in favour of a creditor without transferring ownership or
possession. The bond is executed before a notary public and registered in the deeds
registry to create a real right of security over specified movables. In this matter,
Xolani wishes to register a notarial bond over (1) leased immovable property (Erf
201 Meadowlands Township) and (2) a usufruct over a farm (Moreson). The issue
is whether these assets can validly be made subject to a notarial bond in favour of
Moses.
Definition of key terms
1. Notarial bond
o Governed mainly by the Security by Means of Movable Property Act
57 of 1993 (for special notarial bonds) and the Deeds Registries Act 47
of 1937.
o It is an instrument executed before a notary in which movable property
is hypothecated as security.
o Registration confers on the creditor a real right enforceable against
third parties.
2. Special vs. General notarial bond
Semester 2 2025
DUE 3 September 2025
Use this document as a guide and for references to answer your assignment
Question 1.
Xolani is the owner of Erf 201 Meadowlands Township, which he leases to Zanele.
Xolani is also the holder of a usufruct over the farm, Moreson, just outside the town
where he farms. Xolani borrows money from a family member Moses. Xolani instructs
you, a notary, to draft and register in the deeds registry, a notarial bond over these two
assets in favour of Moses as security for payment of the debt. Fully explain whether you
will be able to execute the instruction. (10)
Introduction
A notarial bond is a type of security agreement in which a debtor hypothecates
movable property in favour of a creditor without transferring ownership or
possession. The bond is executed before a notary public and registered in the deeds
registry to create a real right of security over specified movables. In this matter,
Xolani wishes to register a notarial bond over (1) leased immovable property (Erf
201 Meadowlands Township) and (2) a usufruct over a farm (Moreson). The issue
is whether these assets can validly be made subject to a notarial bond in favour of
Moses.
Definition of key terms
1. Notarial bond
o Governed mainly by the Security by Means of Movable Property Act
57 of 1993 (for special notarial bonds) and the Deeds Registries Act 47
of 1937.
o It is an instrument executed before a notary in which movable property
is hypothecated as security.
o Registration confers on the creditor a real right enforceable against
third parties.
2. Special vs. General notarial bond
