,LPL4805 Assignment 1 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 3
September 2025
MULTIPLE ANSWERS ASSURED EXCELLENCE
Question 1
In this scenario, two assets are identified:
1. Erf 201 Meadowlands Township – Xolani is the owner of
this immovable property and leases it to Zanele.
2. The farm, Moreson – Xolani is not the owner of this
property but holds a usufruct over it.
A notarial bond is a mortgage-type instrument registered over
movable property (either specified or general) in favour of a
creditor as security for a debt. However, South African law
distinguishes between:
Mortgage bonds – used to register security over
immovable property (e.g., land, buildings).
Notarial bonds – used to register security over movable
property or certain personal rights, and they are executed
before a notary public and registered in the deeds
registry.
Applying these principles:
, For Erf 201 Meadowlands Township: This is immovable
property. Security over immovable property is created by
way of a mortgage bond, not a notarial bond. Therefore,
you cannot register a notarial bond over Erf 201; you
would have to register a mortgage bond in favour of
Moses if the intention is to secure the debt against this
property.
For the usufruct over the farm, Moreson: A usufruct is a
limited real right—it grants the holder the right to use
and enjoy another person’s property for a specified time,
usually for life. Such a right can be pledged as security in
certain cases. However, security over a limited real right
like a usufruct is also established by registering a notarial
deed of cession in security, not by a standard notarial
bond over tangible movable property.
Additionally, a notarial bond cannot be registered over
immovable property itself, and in respect of incorporeal rights
(like a usufruct), the Deeds Registries Act requires compliance
with specific provisions for cession in security.
Conclusion:
You will not be able to execute the instruction as it stands.
The Erf 201 Meadowlands Township should be secured by
a mortgage bond, not a notarial bond.
ANSWERS) Semester 2 2025 - DUE 3
September 2025
MULTIPLE ANSWERS ASSURED EXCELLENCE
Question 1
In this scenario, two assets are identified:
1. Erf 201 Meadowlands Township – Xolani is the owner of
this immovable property and leases it to Zanele.
2. The farm, Moreson – Xolani is not the owner of this
property but holds a usufruct over it.
A notarial bond is a mortgage-type instrument registered over
movable property (either specified or general) in favour of a
creditor as security for a debt. However, South African law
distinguishes between:
Mortgage bonds – used to register security over
immovable property (e.g., land, buildings).
Notarial bonds – used to register security over movable
property or certain personal rights, and they are executed
before a notary public and registered in the deeds
registry.
Applying these principles:
, For Erf 201 Meadowlands Township: This is immovable
property. Security over immovable property is created by
way of a mortgage bond, not a notarial bond. Therefore,
you cannot register a notarial bond over Erf 201; you
would have to register a mortgage bond in favour of
Moses if the intention is to secure the debt against this
property.
For the usufruct over the farm, Moreson: A usufruct is a
limited real right—it grants the holder the right to use
and enjoy another person’s property for a specified time,
usually for life. Such a right can be pledged as security in
certain cases. However, security over a limited real right
like a usufruct is also established by registering a notarial
deed of cession in security, not by a standard notarial
bond over tangible movable property.
Additionally, a notarial bond cannot be registered over
immovable property itself, and in respect of incorporeal rights
(like a usufruct), the Deeds Registries Act requires compliance
with specific provisions for cession in security.
Conclusion:
You will not be able to execute the instruction as it stands.
The Erf 201 Meadowlands Township should be secured by
a mortgage bond, not a notarial bond.
