,LPL4805 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 3 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
Multiple choice,assuered excellence
Answer
When Xolani approaches me as a notary with the instruction
to draft and register a notarial bond over Erf 201
Meadowlands Township and over his usufruct in the farm
Moreson in favour of Moses, it is necessary first to determine
whether such an instruction can legally be executed. This
requires an understanding of the nature of the assets in
question and the legal principles governing notarial bonds in
South African property law.
A notarial bond is an instrument registered in the Deeds
Registry to create security over movable property. It may be a
general notarial bond (GNB) over all the debtor’s movables, or
a special notarial bond (SNB) over specified movable property,
in which case the creditor obtains a real right upon
registration in terms of the Security by Means of Movable
Property Act 57 of 1993. Immovable property, on the other
hand, cannot be made subject to a notarial bond; it must be
secured by a mortgage bond.
, Turning to the first asset, Erf 201 Meadowlands Township, this
is immovable property. Xolani is the registered owner, but it is
leased to Zanele. Regardless of the lease, the fact remains that
the property is immovable. A notarial bond over immovable
property is not permitted under the Deeds Registries Act 47 of
1937. If Xolani wishes to provide this erf as security, the
correct legal instrument would be a mortgage bond, not a
notarial bond.
The second asset, the usufruct over the farm Moreson, is a
limited real right. A usufruct is an incorporeal right — movable
in law — entitling the holder to use and enjoy another’s
property. Because incorporeal rights are classified as movables
for security purposes, a notarial bond can be validly registered
over a usufruct. This means that it is possible to bond the
usufruct in favour of Moses through a notarial bond.
Given this analysis, the instruction to register one notarial
bond over both assets cannot be carried out. The two assets
belong to different legal categories: the immovable erf can
only be bonded via a mortgage bond, whereas the usufruct
can be bonded via a notarial bond. The correct approach
would be to prepare and register two separate securities — a
mortgage bond over the erf and a notarial bond over the
usufruct.
Semester 2 2025 - DUE 3 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
Multiple choice,assuered excellence
Answer
When Xolani approaches me as a notary with the instruction
to draft and register a notarial bond over Erf 201
Meadowlands Township and over his usufruct in the farm
Moreson in favour of Moses, it is necessary first to determine
whether such an instruction can legally be executed. This
requires an understanding of the nature of the assets in
question and the legal principles governing notarial bonds in
South African property law.
A notarial bond is an instrument registered in the Deeds
Registry to create security over movable property. It may be a
general notarial bond (GNB) over all the debtor’s movables, or
a special notarial bond (SNB) over specified movable property,
in which case the creditor obtains a real right upon
registration in terms of the Security by Means of Movable
Property Act 57 of 1993. Immovable property, on the other
hand, cannot be made subject to a notarial bond; it must be
secured by a mortgage bond.
, Turning to the first asset, Erf 201 Meadowlands Township, this
is immovable property. Xolani is the registered owner, but it is
leased to Zanele. Regardless of the lease, the fact remains that
the property is immovable. A notarial bond over immovable
property is not permitted under the Deeds Registries Act 47 of
1937. If Xolani wishes to provide this erf as security, the
correct legal instrument would be a mortgage bond, not a
notarial bond.
The second asset, the usufruct over the farm Moreson, is a
limited real right. A usufruct is an incorporeal right — movable
in law — entitling the holder to use and enjoy another’s
property. Because incorporeal rights are classified as movables
for security purposes, a notarial bond can be validly registered
over a usufruct. This means that it is possible to bond the
usufruct in favour of Moses through a notarial bond.
Given this analysis, the instruction to register one notarial
bond over both assets cannot be carried out. The two assets
belong to different legal categories: the immovable erf can
only be bonded via a mortgage bond, whereas the usufruct
can be bonded via a notarial bond. The correct approach
would be to prepare and register two separate securities — a
mortgage bond over the erf and a notarial bond over the
usufruct.
