LPL4805
Assignment 1 Semester 2 2025
Unique #:
Due Date: 3 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
Xolani is the owner of Erf 201 Meadowlands Township, which he leases to
Zanele. Xolani is also the holder of a usufruct over the farm, Moreson, just
outside the town where he farms. Xolani borrows money from a family member
Moses. Xolani instructs you, a notary, to draft and register in the deeds
registry, a notarial bond over these two assets in favour of Moses as security
for payment of the debt. Fully explain whether you will be able to execute the
instruction.
A notarial bond can be registered only over movable property. Section 82 of the
Deeds Registries Act 47 of 1937 allows for the registration of a notarial bond over a
registered lease or sublease, but as notarial bonds may only be registered over
movables, this provision applies to a registered short-term lease. A registered long-
term lease is defined as immovable property under section 102 of the Act and may
only be hypothecated by way of an ordinary mortgage bond.1
In this scenario, Xolani owns Erf 201 Meadowlands Township, which is immovable
property. Because a notarial bond cannot be registered over immovable property, it
1
Deeds Registries Act 47 of 1937, s 82.
Varsity Cube 2025 +27 81 278 3372
Assignment 1 Semester 2 2025
Unique #:
Due Date: 3 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
Xolani is the owner of Erf 201 Meadowlands Township, which he leases to
Zanele. Xolani is also the holder of a usufruct over the farm, Moreson, just
outside the town where he farms. Xolani borrows money from a family member
Moses. Xolani instructs you, a notary, to draft and register in the deeds
registry, a notarial bond over these two assets in favour of Moses as security
for payment of the debt. Fully explain whether you will be able to execute the
instruction.
A notarial bond can be registered only over movable property. Section 82 of the
Deeds Registries Act 47 of 1937 allows for the registration of a notarial bond over a
registered lease or sublease, but as notarial bonds may only be registered over
movables, this provision applies to a registered short-term lease. A registered long-
term lease is defined as immovable property under section 102 of the Act and may
only be hypothecated by way of an ordinary mortgage bond.1
In this scenario, Xolani owns Erf 201 Meadowlands Township, which is immovable
property. Because a notarial bond cannot be registered over immovable property, it
1
Deeds Registries Act 47 of 1937, s 82.
Varsity Cube 2025 +27 81 278 3372
