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LPL4804 Assignment 1 Semester 1 2026 (Answer Guide) - DUE 17
March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .......................................................................................................................................... 2
1.1 Dealing with the existing mortgage bond over Erf 3 upon consolidation.................. 2
1.2 Draft property description for the deed of transfer .......................................................... 4
QUESTION 2 .......................................................................................................................................... 5
Requirements for registration of an expropriation transfer by the Registrar of Deeds 5
1. Lawful authority to expropriate................................................................................................ 5
2. Expropriation for a public purpose or in the public interest............................................ 5
3. Valid notice of expropriation .................................................................................................... 5
4. Vesting of ownership .................................................................................................................. 6
5. Determination or provision for compensation..................................................................... 6
6. Compliance with subdivision requirements ......................................................................... 6
7. Lodgement of an expropriation transfer deed ..................................................................... 7
8. Clearance and endorsements .................................................................................................. 7
9. Rates and municipal compliance ............................................................................................ 7
10. Registrar’s satisfaction ............................................................................................................ 7
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QUESTION 1
1.1 Dealing with the existing mortgage bond over Erf 3 upon consolidation
(6 marks)
Zanele Khumalo owns Erf 3 and Erf 4 in Kruger Township and intends to consolidate
them. Erf 3 is subject to a registered mortgage bond in favour of Blue Bank, while
Erf 4 is unencumbered. The existence of a bond over only one of the properties creates
legal consequences that must be addressed before consolidation can be registered.
Legal position
Consolidation of erven results in the creation of one new consolidated erf with a new
erf number, and the original erven cease to exist as separate properties. A mortgage
bond, however, is registered over a specific, identifiable property. Once Erf 3 ceases
to exist as a separate erf, the bond registered over it cannot automatically continue
to exist unless appropriate steps are taken.
In terms of the Deeds Registries Act 37 of 1937, no real right such as a mortgage
bond may be prejudiced, altered, or extinguished without the consent of the bondholder
and compliance with prescribed procedures.
Available options to deal with the bond
Zanele has the following lawful options:
1. Cancellation of the existing mortgage bond
o Blue Bank may consent to the cancellation of the mortgage bond over
Erf 3.
o This would usually occur if the bond is fully settled or if alternative security
is provided.
o A bond cancellation would be registered prior to, or simultaneously with,
the consolidation.
LPL4804 Assignment 1 Semester 1 2026 (Answer Guide) - DUE 17
March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
QUESTION 1 .......................................................................................................................................... 2
1.1 Dealing with the existing mortgage bond over Erf 3 upon consolidation.................. 2
1.2 Draft property description for the deed of transfer .......................................................... 4
QUESTION 2 .......................................................................................................................................... 5
Requirements for registration of an expropriation transfer by the Registrar of Deeds 5
1. Lawful authority to expropriate................................................................................................ 5
2. Expropriation for a public purpose or in the public interest............................................ 5
3. Valid notice of expropriation .................................................................................................... 5
4. Vesting of ownership .................................................................................................................. 6
5. Determination or provision for compensation..................................................................... 6
6. Compliance with subdivision requirements ......................................................................... 6
7. Lodgement of an expropriation transfer deed ..................................................................... 7
8. Clearance and endorsements .................................................................................................. 7
9. Rates and municipal compliance ............................................................................................ 7
10. Registrar’s satisfaction ............................................................................................................ 7
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QUESTION 1
1.1 Dealing with the existing mortgage bond over Erf 3 upon consolidation
(6 marks)
Zanele Khumalo owns Erf 3 and Erf 4 in Kruger Township and intends to consolidate
them. Erf 3 is subject to a registered mortgage bond in favour of Blue Bank, while
Erf 4 is unencumbered. The existence of a bond over only one of the properties creates
legal consequences that must be addressed before consolidation can be registered.
Legal position
Consolidation of erven results in the creation of one new consolidated erf with a new
erf number, and the original erven cease to exist as separate properties. A mortgage
bond, however, is registered over a specific, identifiable property. Once Erf 3 ceases
to exist as a separate erf, the bond registered over it cannot automatically continue
to exist unless appropriate steps are taken.
In terms of the Deeds Registries Act 37 of 1937, no real right such as a mortgage
bond may be prejudiced, altered, or extinguished without the consent of the bondholder
and compliance with prescribed procedures.
Available options to deal with the bond
Zanele has the following lawful options:
1. Cancellation of the existing mortgage bond
o Blue Bank may consent to the cancellation of the mortgage bond over
Erf 3.
o This would usually occur if the bond is fully settled or if alternative security
is provided.
o A bond cancellation would be registered prior to, or simultaneously with,
the consolidation.
