LPL4805 Assignment 1
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 3
September 2025
For assistance contact
Email:
, 1. Notarial Bond over the Assets
As a notary, you will not be able to register a single notarial bond over both assets as
instructed. The two assets are fundamentally different in their legal nature, and a notarial
bond is the incorrect instrument for one of them.
• Erf 201, Meadowlands Township: This is an immovable property. According to
South African law, a mortgage bond is the correct instrument for creating a real
security right over immovable property. A notarial bond is used for movable
property.
• The Usufruct over Moreson: A usufruct is a personal servitude, which is a limited
real right over property. While a usufruct itself is a form of immovable property, it is
an incorporeal right. It can be mortgaged by way of a notarial bond. However, a
notarial bond is typically used for movable assets.
• The Farm, Moreson: A usufruct over a farm does not grant ownership of the land
itself. A usufruct is an asset in Xolani's estate, but the farm itself is not. Therefore, you
cannot place a bond over the farm.
You will need to advise Xolani on the correct legal instruments. You can register a notarial
bond over Xolani's movable property, including the usufruct, but you cannot register a
notarial bond over the immovable property (Erf 201). A mortgage bond is the correct
instrument for securing the debt against the immovable property. You will need to draft and
register two separate documents if he wants to use both assets as security.
2. Supplementary Provisions in a Notarial Bond
A notarial bond must contain supplementary provisions to clarify the legal relationship and
obligations between the debtor (Xolani) and the creditor (Moses). These provisions are
crucial for enforcing the bond and ensuring that the security is effective.
• Description of the Debt: The bond must clearly specify the amount of the debt
being secured, the reason for the debt (e.g., loan, supply of goods), and the terms of
repayment, including the interest rate and repayment schedule.
• Identification of the Property: It must provide a clear and specific description of
the movable property being hypothecated. This is particularly important for a
special notarial bond, where the property must be clearly identified so that it can be
perfected (taken into possession) in the event of default.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 3
September 2025
For assistance contact
Email:
, 1. Notarial Bond over the Assets
As a notary, you will not be able to register a single notarial bond over both assets as
instructed. The two assets are fundamentally different in their legal nature, and a notarial
bond is the incorrect instrument for one of them.
• Erf 201, Meadowlands Township: This is an immovable property. According to
South African law, a mortgage bond is the correct instrument for creating a real
security right over immovable property. A notarial bond is used for movable
property.
• The Usufruct over Moreson: A usufruct is a personal servitude, which is a limited
real right over property. While a usufruct itself is a form of immovable property, it is
an incorporeal right. It can be mortgaged by way of a notarial bond. However, a
notarial bond is typically used for movable assets.
• The Farm, Moreson: A usufruct over a farm does not grant ownership of the land
itself. A usufruct is an asset in Xolani's estate, but the farm itself is not. Therefore, you
cannot place a bond over the farm.
You will need to advise Xolani on the correct legal instruments. You can register a notarial
bond over Xolani's movable property, including the usufruct, but you cannot register a
notarial bond over the immovable property (Erf 201). A mortgage bond is the correct
instrument for securing the debt against the immovable property. You will need to draft and
register two separate documents if he wants to use both assets as security.
2. Supplementary Provisions in a Notarial Bond
A notarial bond must contain supplementary provisions to clarify the legal relationship and
obligations between the debtor (Xolani) and the creditor (Moses). These provisions are
crucial for enforcing the bond and ensuring that the security is effective.
• Description of the Debt: The bond must clearly specify the amount of the debt
being secured, the reason for the debt (e.g., loan, supply of goods), and the terms of
repayment, including the interest rate and repayment schedule.
• Identification of the Property: It must provide a clear and specific description of
the movable property being hypothecated. This is particularly important for a
special notarial bond, where the property must be clearly identified so that it can be
perfected (taken into possession) in the event of default.
