LPL4805 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS - DISTINCTION GUARANTEED!)

LPL4805 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS - DISTINCTION GUARANTEED!) Question 1. 1.1.1. Distinguish between an inter vivos trust and mortis causa trust (10) 1.1.2. The founder of a trust, together with the trustee has just executed a deed of trust before you, a notary. Indicate the key requirement that the trustee must be in order qualify to act as such. (1) 1.1.3. What must still be complied with in respect of the deed of trust and the trustee before that trust can function as such. (5) 1.2. Under which circumstances may a trust be terminated? (3) 1.3. X comes to your office seeking to authenticate a document. As a notary, what steps would you take to ensure that you carry out the authentication of X's document. (6) [251 Question 2. 2.1. X bequeaths his farm, Kraaifontein, to his two sons in equal shares, subject to a usufruct in favour of his widow, Y, and subject to a servitude of aqueduct in favour of his other farm, Ehlanzeni, which he bequeaths to his daughter, Z. Is it possible to give effect to the stipulations in this will? Substantiate your answer with reference to the provisions of the Subdivision of Agricultural Land Act 70 of 1970. (12) 2.2. X is the owner of two farms, subject to his mother's usufruct. X sells one farm to Y. Before transfer takes place, X dies. The executor of X's deceased estate transfers the sold farm to Y and transfers the remaining farm, in terms of a bequest in the will, to X's heir. X's mother waives her usufruct. What is the position in respect of payment of transfer duty? (6) 2.3. Under which circumstances can a personal servitude be reserved by a condition in a deed of transfer of a land? (2) [201 Question 3. 3.1. X, a company with its head office in Cape Town, owns a fleet of delivery vehicles that it uses for conducting its countrywide business as a general dealer. X has been granted overdraft facilities by Y, a bank with its head office in Pretoria. X offers its vehicles and trading stock to Y as security for payment of the outstanding amount on its overdraft. Y approaches you, a notary, for advice: (a). Briefly explain, with reference to the objects of security, what documents you would prepare in order to provide Y with the best possible form of security. (3) (b). Indicate at what stage these documents would lead to real security in favour of Y. (6) (c). Where must these documents be registered? (d) When must these documents be registered? (4) (2) 3.2. As a notary, you executed an antenuptial contract for a betrothed couple before their wedding. However, you failed to register the contract within three months of the execution date. How will you remedy the situation? (5) [20]. Question 4. 4.1 Stephen and Mary intend to get married out of community of property. However, they do not want their commencement values to be in the antenuptial contract to become public knowledge. How can they ensure that their commencement value is not public knowledge. How will they be able to achieve their goal? How will this be facilitated? Advise them with reference to relevant legislation. 4.2. John and Lerato intend to get married out of community of property. However, John will be travelling to England soon and will return to South Africa on the day of their wedding. John will not have an opportunity to appear before a notary to execute their antenuptial contract before the solemnization of their marriage. John and Lerato approach Mr Mbatha, a practicing attorney in Pretoria for legal assistance. How can Mr Mbatha assist the clients in fulfilling their wishes to marry out of community of property? (5) 4.3. You, are a practising notary who has not been yet admitted as a conveyancer but who has extensive knowledge of conveyancing. You are requested by client, Company Nik Naks to prepare a power of attorney transfer of X's farm Vitvlutch in favour of purchaser (Sofi Jones) so that a conveyancer in Pretoria may attend to the registration of the said transfer into the names of Sofi Jones. A director of Nik Naks will sign the power of attorney on behalf of the Company. What does the Deeds Registries Act 47 of 1937 prescribe with regard to the signing of the preparation certificate on the power of attorney? (5) [201 Question 5. 5.1. Which requirements must be met when modifying a registered antenuptial contract? 5.2. Name the requirements that a power of attorney must meet for it to be valid and binding. 5.3. Name any 5 documents that have to be drafted by a notary before they will be accepted for registration in the deeds registry. [15] [100]