LPL4805
Assignment 1
Due 03 September 2025
, Notarial Practice
Question 1 Analysis (10 marks)
Facts Restated:
Asset 1: Erf 201, Meadowlands Township – owned by Xolani but currently
leased to Zanele.
Asset 2: Farm “Moreson” – Xolani does not own the land; he only holds a
usufruct right.
Instruction: Draft and register a notarial bond over both properties in favour of
Moses.
Applicable Legal Framework:
The Security by Means of Movable Property Act 57 of 1993 and the Deeds
Registries Act 47 of 1937 govern notarial bonds.
Only a party with the legal authority to burden property may execute a notarial
bond.
For immovable property, security is provided through a mortgage bond, which
requires the mortgagor to be the registered owner.
A usufruct is a limited real right. While the land itself cannot be mortgaged by
the usufructuary, the usufruct can be ceded in security, subject to certain
conditions.
Notarial bonds are typically used for movable assets, though certain incorporeal
rights (like a usufruct) may also be pledged by cession.
Application of Law to the Facts:
1. Erf 201, Meadowlands
o This is immovable property, which cannot be encumbered by a notarial
bond. Instead, security must be created through a mortgage bond
registered in the deeds registry.
Assignment 1
Due 03 September 2025
, Notarial Practice
Question 1 Analysis (10 marks)
Facts Restated:
Asset 1: Erf 201, Meadowlands Township – owned by Xolani but currently
leased to Zanele.
Asset 2: Farm “Moreson” – Xolani does not own the land; he only holds a
usufruct right.
Instruction: Draft and register a notarial bond over both properties in favour of
Moses.
Applicable Legal Framework:
The Security by Means of Movable Property Act 57 of 1993 and the Deeds
Registries Act 47 of 1937 govern notarial bonds.
Only a party with the legal authority to burden property may execute a notarial
bond.
For immovable property, security is provided through a mortgage bond, which
requires the mortgagor to be the registered owner.
A usufruct is a limited real right. While the land itself cannot be mortgaged by
the usufructuary, the usufruct can be ceded in security, subject to certain
conditions.
Notarial bonds are typically used for movable assets, though certain incorporeal
rights (like a usufruct) may also be pledged by cession.
Application of Law to the Facts:
1. Erf 201, Meadowlands
o This is immovable property, which cannot be encumbered by a notarial
bond. Instead, security must be created through a mortgage bond
registered in the deeds registry.
