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LPL4805 Assignment 1 (COMPLETE ANSWERS) Semester 2 2026 - DUE 26 August 2026

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Which requirements does a notarial bond have to meet to ensure the security benefit that the Security by Means of Movable Property Act 57 of 1993 provides? Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. What is the difference between ante-nuptial contract and post-nuptial contract? Name the facts which have to be stated in a notarial bond in terms of section 61 of the Deeds Act in order to make such bond acceptable for registration. Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. Mary and Joe Jones wish change their matrimonial property dispensation in terms of Section 21 of the Matrimonial Property Act 88 of 1984. What must the parties state in their application to convince the court to grant the order? X, a company with its head office in Cape Town, is the owner of a fleet of delivery vehicles which X uses for carrying on its country wide business as a general dealer. Y, a bank with its head office in Pretoria, has given X an overdraft facility. appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Explain. X offers its vehicles and trading stock to Y as security for payment of the outstanding amount on its overdraft. Y approaches you as a notary for advice. Richard Ewings is the owner of the farm Winkelhaak in Mpumalanga. Richard Ewings wants to bequeath the property to his three children in equal shares. How would you advise Richard Ewings, in terms of the provisions of the Subdivision of Agricultural Land Act 70 of 1970? appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Explain. Substantiate your answer. Mary and Joe Jones wish change their matrimonial property dispensation in terms of Section 21 of the Matrimonial Property Act 88 of 1984. Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. What must the parties state in their application to convince the court to grant the order? 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. Richard Ewings is the owner of the farm Winkelhaak in Mpumalanga. Richard Ewings wants to bequeath the property to his three children in equal shares. How would you advise Richard Ewings, in terms of the provisions of the Subdivision of Agricultural Land Act 70 of 1970? Substantiate your answer. Indicate at what stage these documents will lead to real security in favour of Y. appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Explain. Mary and Joe Jones wish change their matrimonial property dispensation in terms of Section 21 of the Matrimonial Property Act 88 of 1984. What must the parties state in their application to convince the court to grant the order? Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. Where must these documents be registered? Richard Ewings is the owner of the farm Winkelhaak in Mpumalanga. Richard Ewings wants to bequeath the property to his three children in equal shares. How would you advise Richard Ewings, in terms of the provisions of the Subdivision of Agricultural Land Act 70 of 1970? Substantiate your answer. When must these documents be registered? Explain briefly whether a mortgagee enjoys any security under either a general notarial bond or a specific notarial bond. Richard Ewings is the owner of the farm Winkelhaak in Mpumalanga. Richard Ewings wants to bequeath the property to his three children in equal shares. How would you advise Richard Ewings, in terms of the provisions of the Subdivision of Agricultural Land Act 70 of 1970? Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. Substantiate your answer. Name five types of important notarial bonds that you will encounter in practice. Mary and Joe Jones wish change their matrimonial property dispensation in terms of Section 21 of the Matrimonial Property Act 88 of 1984. What must the parties state in their application to convince the court to grant the order? appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Explain. What are the required periods for the registration of a notarial bond in more than one deeds registry? What is the difference between ante-nuptial contract and post-nuptial contract? Richard Ewings is the owner of the farm Winkelhaak in Mpumalanga. Richard Ewings wants to bequeath the property to his three children in equal shares. appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. Explain. How would you advise Richard Ewings, in terms of the provisions of the Subdivision of Agricultural Land Act 70 of 1970? Substantiate your answer. X is the owner of a residential erf in town, but she resides in a town house which she has been renting from Z for many years. X is also the holder of a usufruct over the farm Moreson just outside the town where she farms. X borrows money from a family member, Y. X instructs you, a notary, to draft and register in the deeds registry a notarial bond over these three assets in favour of Y as security for payment of the debt. Fully explain whether you will be able to execute the instruction. X, the owner of a cargo ship, lets his goods shed to Z on a long term lease. X also owns a house in Cape Town as well as several vehicles. X owes Bank Y a large sum of money. Bank Y requests you, as a notary, to draft a notarial bond. Mary and Joe Jones wish change their matrimonial property dispensation in terms of Section 21 of the Matrimonial Property Act 88 of 1984. Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. What must the parties state in their application to convince the court to grant the order? appeared before you, a notary to execute and register a servitude agreement. Due to your large volume of work, you erroneously forgot to register the servitude agreement at the Registrar of Deeds office. Will the unregistered agreement establish an enforceable servitude agreement? Explain. What advice would you give Bank Y about the security objects and the forms of real security to be used here? Name three conditions relating to the payment of the debt that may not be included in a bond. Name the persons who are incompetent to act as are trustees in terms of the Trust Property Control Act 57 of 1988. Define an antenuptial contract.

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LPL4805 Assignment 1
(COMPLETE ANSWERS)
Semester 2 2026 - DUE
26 August 2026



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,1. Requirements for a Notarial Bond Under Act 57 of 1993

To ensure the real security benefit provided by Section 1(1) of the Security by Means of Movable
Property Act 57 of 1993, a special notarial bond must satisfy the following strict requirements: [1]

 Specific Description: The bond must explicitly describe the corporeal movable property in such a
manner that the individual items can be readily recognized and identified. Broad, blanket
generic descriptions do not qualify. [1, 2, 3]

 Proper Execution: It must be attested and executed before a qualified Notary Public. [1]

 Timeous Registration: It must be registered in the relevant Deeds Registry within the strict
statutory period allowed under the Deeds Registries Act. [1]

2. Disqualification of Trustees Under Act 57 of 1988

Under South African law and the general framework of the Trust Property Control Act 57 of 1988, the
following categories of persons are legally incompetent or disqualified from acting as trustees: [1, 2]

 An unrehabilitated insolvent.

 Any person declared by a competent court to be mentally ill, incapacitated, or incapable of
managing their own affairs.

 A minor or any individual lacking full legal and contractual capacity.

 Any person who has been removed from an office of trust by a court of law due to misconduct
or breach of fiduciary duty.

 A corporate entity that is in liquidation or wound up. [1]

3. Antenuptial vs. Postnuptial Contracts

 Antenuptial Contract (ANC): An agreement entered into and executed by intending spouses
prior to the solemnization of their marriage. Its fundamental purpose is to exclude the statutory
community of property and community of profit and loss. [1]

 Postnuptial Contract: An agreement entered into and executed by spouses after their marriage
has already taken place. It requires a formal joint application to the High Court under Section
21(1) of the Matrimonial Property Act to authorize the change of their existing marital property
system. [1, 2, 3]

4. Required Facts for a Notarial Bond (Section 61 of the Deeds Registries Act)

, In terms of Section 61 of the Deeds Registries Act 47 of 1937, for a notarial bond to be acceptable for
registration, it must state:

 The full names, identity numbers, and marital status of both the debtor (mortgagor) and the
creditor (mortgagee).

 A clear and unambiguous record of the causa (the underlying legal reason for the debt, such as
money lent and advanced, or an overdraft facility).

 The specific, fixed sum of money being secured by the bond, along with any provisions made for
an additional sum to cover future costs or interest.

 The place and date of execution before the attesting notary public. [1, 2]

5. Section 21 Matrimonial Property Act Applications

For the High Court to grant an order permitting Mary and Joe Jones to change their matrimonial
property system under Section 21(1), the parties must satisfy the court of the following: [1, 2]

 Sound Reasons: There must be legitimate, objective, and sound reasons for the proposed
change.

 No Prejudice to Others: The change must not cause prejudice to any other person or creditor.

 Sufficient Notice to Creditors: Explicit evidence must be provided showing that sufficient
advance notice of the proposed change has been given to all current creditors.

 Full Financial Disclosure: A comprehensive overview of their current asset and liability positions
must be disclosed to show financial solvency. [1, 2]

6. Overdraft Security for X and Bank Y

Advised Documents and Objects of Security

To secure X's outstanding overdraft facility with Bank Y using its vehicles and trading stock:

 Vehicles (Corporeal Movables): A Special Notarial Bond must be prepared in terms of Act 57 of
1993. Each vehicle must be explicitly identified by its make, model, chassis number, engine
number, and registration plates to achieve the status of a real right directly upon registration.

 Trading Stock (Fluctuating/Fungible Assets): A General Notarial Bond must be prepared over all
trading stock. Because trading stock is continuously sold and replenished, it cannot be
individually specified for a special notarial bond. [1, 2, 3]

Perfection & Achievement of Real Security

 The Special Notarial Bond over the vehicles constitutes a deemed pledge and creates
immediate real security in favour of Bank Y the moment it is successfully registered in the Deeds
Registry. No physical delivery is required.

 The General Notarial Bond over the trading stock only provides a personal right and a statutory
preference upon registration. It will only convert into a real security right once the bank

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