LPL4804 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS - DISTINCTION GUARANTEED!)

LPL4804 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS - DISTINCTION GUARANTEED!) Question 1. 1.1 Draft the vesting clause where a couple who are married out of community of property is purchasing an immovable property together in equal undivided shares. Use your imagination for necessary information such as names. (4) 1.2 Would your answer differ if you were describing the same couple as in question 1.1. in the preamble of the deed of transfer, i.e. as transferors? Explain. Question 2. John Doe, who was married in community of property to Jane Doe, has died. Answer the following questions: 2.1 In terms of John Doe’s last will and testament, his surviving spouse Jane Doe inherits the family home. Who must sign the power of attorney to pass transfer of the immovable property? Explain and support your answer. (3) 2.2 In terms of John Doe’s last will and testament, his surviving spouse Jane Doe inherits the family home. There is not enough cash in the estate to pay the estate creditors, thus the executor is obliged to sell the family home by public auction to pay the estate creditors. Who must sign the power of attorney to pass transfer? (3) 2.3 John and Jane Doe’s joint last will and testament stipulates that the joint estate must be merged and dealt with as a massed unit. They will further provide that their daughter, Josie inherits the family home, subject to a usufruct in favour of the surviving spouse. Who must sign the power of attorney to pass the transfer of the immovable property to Josie? Support and explain your answer. (4) [10] 2.4 Draft the vesting clauses for the transferees listed below, as required by the Deeds Registries Act 47 of 1937 and the regulations issued thereunder. You may use your imagination for any missing details: a) A partnership where at least one of the partners is married in community of property. (4) b) A person who does not have a valid identity document. (3) c) A trust. (3) [20] Question 3 a) Briefly explain under what circumstances substitution of a debtor may be effected in terms of section 57 of the Deeds Registries Act 47 of 1937, and under what circumstances such substitution is prohibited in terms of section 57. b) Discuss the circumstances that must prevail for the transfer of land by endorsement in terms of section 16, section 24bis and sec 25(3) of the Deeds Registries Act 47 of 1937. (12) [20] Question 4. 4.1 Explain the purpose and function of the ranking clause in a mortgage bond. 4.2 Although it is arguable that the waiver of legal exceptions has been prohibited by the National Credit Act 34 of 2005, these clauses are still common in mortgage bonds. Briefly list and explain two such legal exceptions usually waived in mortgage bonds. (6) 4.3 You are a practicing conveyancer and receive instructions from your client XYZ Bank to register a mortgage bond in the bank's favour to secure a loan of R1 million made to Peter. However, when you check the conditions of the title deed to Peter's farm, you notice that there is a lifelong usufruct registered over the farm in favour of Peter's mother. Advise your client XYZ Bank what needs to be done and the advantages and disadvantages of the different options [20] Question 5. 5.1 With reference to the definition of owner as contained in section 102 of the Deeds Registries Act 47 of 1937, discuss who may validly sign the power of attorney (as owner) to transfer property. Where the registered owner of the property is: (a) a woman married by customary union. (b) a minor (unmarried minor) 5.2 Discuss the transfer duty receipt or exemption as a supporting document to a deed of transfer. (5) 5.3 Who may validly sign the execution clause of a deed of transfer? Explain. Question 6. State and explain under what circumstance may an application be brought in terms of: 6.1 section 4(1)(b) of the Deeds Registries Act 47 of 1937 to correct an error. (6) 6.2 section 17(4) of the Deeds Registries Act 47 of 1937 for a change of marital [10]