LPL4805
ASSIGNMENT 1
DUE DATE: 3 SEPTEMBER 2025
, LPL4805 ASSIGNMENT 1 2025
SEMESTER 2 2025
DUE DATE: 03 SEPTEMBER 2025.
TOTAL: 20 MARKS.
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.
In terms of the Deeds Act and the notarial/conveyancing rules, you cannot simply prepare and
register one notarial bond over both Erf 201 (an immovable) and Xolani’s usufruct in respect of
the farm Moreson the way you describe.
Legal character of the two assets
Erf 201, Meadowlands (immovable) - this is immovable property (land/building) registered in the
deeds registry in an owner’s name. Security over immovable property is created by a mortgage
bond (a mortgage over immovable property), not by a notarial bond.
Usufruct over Moreson (real right) - a usufruct is a limited real right (a right to use and enjoy
another’s immovable). Whether and how it can be used as security depends on whether the
usufruct is registrable/registered and the exact terms of the usufruct, but it is not a movable that
falls within the ordinary notarial-bond regime.
What a “notarial bond” is (and its limits)
ASSIGNMENT 1
DUE DATE: 3 SEPTEMBER 2025
, LPL4805 ASSIGNMENT 1 2025
SEMESTER 2 2025
DUE DATE: 03 SEPTEMBER 2025.
TOTAL: 20 MARKS.
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.
In terms of the Deeds Act and the notarial/conveyancing rules, you cannot simply prepare and
register one notarial bond over both Erf 201 (an immovable) and Xolani’s usufruct in respect of
the farm Moreson the way you describe.
Legal character of the two assets
Erf 201, Meadowlands (immovable) - this is immovable property (land/building) registered in the
deeds registry in an owner’s name. Security over immovable property is created by a mortgage
bond (a mortgage over immovable property), not by a notarial bond.
Usufruct over Moreson (real right) - a usufruct is a limited real right (a right to use and enjoy
another’s immovable). Whether and how it can be used as security depends on whether the
usufruct is registrable/registered and the exact terms of the usufruct, but it is not a movable that
falls within the ordinary notarial-bond regime.
What a “notarial bond” is (and its limits)
