LPL4805
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 3 SEPTEMBER 2025
, Question 1
Xolani owns Erf 201 in Meadowlands Township, which he has leased to Zanele, and
also holds a usufruct over the farm “Moreson.” He has borrowed money from Moses
and now wants to register a notarial bond over both assets as security.
A notarial bond is generally used to give security over movable property or certain
incorporeal rights. When dealing with immovable property, such as Erf 201, the
correct form of security is a mortgage bond, not a notarial bond. The fact that the
property is leased to Zanele does not prevent it from being mortgaged, but it must be
done through the correct legal instrument — a mortgage bond registered in the deeds
registry.
As for the farm “Moreson,” Xolani is not the owner — he only holds a usufruct, which is
a personal servitude and a limited real right. A usufruct can be ceded in security by
means of a notarial deed of cession. This can be registered in the deeds registry in
favour of Moses.
In conclusion, I would not be able to carry out Xolani’s instruction exactly as he gave it.
It is not possible to register one notarial bond over both assets. The proper way forward
would be:
Register a mortgage bond over Erf 201 in favour of Moses.
Register a notarial cession of usufruct in security over “Moreson” in favour of
Moses.
This ensures the security is legally valid for both types of property.
Question 2
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 3 SEPTEMBER 2025
, Question 1
Xolani owns Erf 201 in Meadowlands Township, which he has leased to Zanele, and
also holds a usufruct over the farm “Moreson.” He has borrowed money from Moses
and now wants to register a notarial bond over both assets as security.
A notarial bond is generally used to give security over movable property or certain
incorporeal rights. When dealing with immovable property, such as Erf 201, the
correct form of security is a mortgage bond, not a notarial bond. The fact that the
property is leased to Zanele does not prevent it from being mortgaged, but it must be
done through the correct legal instrument — a mortgage bond registered in the deeds
registry.
As for the farm “Moreson,” Xolani is not the owner — he only holds a usufruct, which is
a personal servitude and a limited real right. A usufruct can be ceded in security by
means of a notarial deed of cession. This can be registered in the deeds registry in
favour of Moses.
In conclusion, I would not be able to carry out Xolani’s instruction exactly as he gave it.
It is not possible to register one notarial bond over both assets. The proper way forward
would be:
Register a mortgage bond over Erf 201 in favour of Moses.
Register a notarial cession of usufruct in security over “Moreson” in favour of
Moses.
This ensures the security is legally valid for both types of property.
Question 2
